UK Endorsement Board announces first adoption decision since delegation of powers

The UK Endorsement Board (UKEB) has announced that it approved the adoption of the International Accounting Standards Board’s (IASB) May 2020 Amendments to IFRS: its first adoption decision since receiving delegated powers from the Business Secretary on 22 May 2021.

The May 2020 Amendments are comprised of three Annual Improvements amendments (from the IASB’s Annual Improvements to IFRS® Standards 2018–2020) and three Narrow-Scope Amendments, as follows:

• Three amendments from Annual Improvements to IFRS® Standards 2018–2020:
  • Amendment to IFRS 1 First-time Adoption of International Financial Reporting Standards—Subsidiary as a First-time Adopter.
  • Amendment to IFRS 9 Financial Instruments—Fees in the ‘10 per cent’ Test for Derecognition of Financial Liabilities.
  • Amendment to IAS 41 Agriculture—Taxation in Fair Value Measurements.
• Onerous Contracts—Cost of Fulfilling a Contract (Amendments to IAS 37).
• Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16).
• Reference to the Conceptual Framework (Amendments to IFRS 3).

These amendments are effective for annual periods beginning on or after 1 January 2022, with early application permitted.

The Chair of the UKEB Pauline Wallace said:

“The adoption of these amendments marks an important milestone for the UKEB since receiving delegated powers. This is a major step towards establishing ourselves as the UK voice on IFRS financial reporting.

The UKEB has a busy agenda planned for the year ahead, and we look forward to continuing to work with UK stakeholders to advance this agenda in the public interest.    

Further information can be found on the UKEB website.