UK Endorsement Board secretariat publishes draft UK Endorsement Criteria Assessment on six IASB amendments
01 Oct, 2021
The UK Endorsement Board (UKEB) secretariat has published a draft UK Endorsement Criteria Assessment on a set of six amendments to International Accounting Standards published by the International Accounting Standards Board (IASB) in May 2020 (the ‘May 2020 Amendments’).
The May 2020 Amendments comprise three Annual Improvement amendments (from the IASB’s Annual Improvements to IFRS Standards 2018–2020) and three Narrow-Scope amendments.
The Annual Improvement amendments covered in the draft endorsement assessment criteria assessment are:
- Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards—Subsidiary as a First-time Adopter.
- Amendments to IFRS 9 Financial Instruments—Fees in the ‘10 per cent’ Test for Derecognition of Financial Liabilities.
- Amendments to IAS 41 Agriculture—Taxation in Fair Value Measurements.
The Narrow-Scope Amendments covered in the draft endorsement assessment criteria are:
- Amendments to IAS 16 Property, Plant and Equipment—Proceeds before Intended Use
- Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets—Onerous Contracts—Cost of Fulfilling a Contract.
- Amendments to IFRS 3 Business Combinations—Reference to the Conceptual Framework.
The UKEB secretariat's initial assessment concludes that:
- the May 2020 Amendments meet the criteria of relevance, reliability, comparability and understandability required of the financial information needed for making economic decisions and assessing the stewardship of management, as required by SI 2019/685 (see Regulation 7(1)(c)); and
- application of the May 2020 Amendments is not contrary to the principle that an entity’s accounts/consolidated accounts must give a true and fair view, as required by SI 2019/685 (see Regulation 7(1)(a)).
Additionally the UKEB secretariat initially concludes that the May Amendments will improve the quality of financial reporting and that the benefits of the May 2020 Amendments are likely to outweigh the costs.
Comments on the draft UK Endorsement Criteria Assessment are requested by 30 November 2021.
The draft UK Endorsement Criteria Assessment and the Invitation to Comment can be accessed on the UKEB website.
Related Topics
- Conceptual Framework for Financial Reporting 2018
- IAS 16 — Property, Plant and Equipment
- IAS 37 — Provisions, Contingent Liabilities and Contingent Assets
- IAS 41 — Agriculture
- IFRS 1 — First-time Adoption of International Financial Reporting Standards
- IFRS 3 — Business Combinations
- IFRS 9 — Financial Instruments
- IFRIC 21 — Levies