The UKEB secretariat's draft response has been informed from stakeholder roundtables and interviews, desk-based reviews of annual reports and public consultation on its draft response.  It concludes that the Standards have achieved their objectives and the objectives of them set by the IASB when issued and are working effectively overall.  The UKEB secretariat draft comment letter makes some recommendations in a few areas where it believes that the 'application of the Standards can be significantly improved'.  These include:

• Additional considerations to be included within the application guidance to IFRS 10 regarding when a call option substantively gives the investor an ownership interest in shares held by a non-controlling interest when determining control.
• Additional guidance to reduce diversity in practice regarding how to determine the value of a non-controlling interest when a subsidiary is partly owned by an associate of the parent.
• Additional guidance to improve consistency and comparability regarding incremental costs directly attributable to changes in ownership interests.
• Additional guidance to improve consistency and comparability in accounting for acquiring a controlling interest in a single-asset entity
• Possible improvements to existing disclosure requirements in IFRS 12 to provide more useful information to users
• Illustrative examples on the interaction of IFRS 11 with both IFRS 15 and IFRS 16

Comments on the UKEB's draft response are requested by 5 May 2021. 

For more information, see the press release, draft response and invitation to comment on the UKEB's website.