UK Endorsement Board (UKEB)
The UK Endorsement Board will endorse and adopt new or amended International Financial Reporting Standards issued by the International Accounting Standards Board.
Role of the board
The purpose of the UK Endorsement Board (UKEB) is to endorse and adopt new or amended International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).
At the end of the transition period, UK-adopted international accounting standards will consist of all international accounting standards already adopted in the EU. New and amended standards, issued by the IASB and adopted by the UKEB, will be added to the set of UK-adopted international accounting standards.
For financial years beginning on or after the end of the transition period, UK-registered listed companies will be required to use UK-adopted international accounting standards when preparing their consolidated financial statements. Find out more about accounting for UK companies from 1 January 2021.
Functions
The International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019 give the Secretary of State for BEIS the necessary statutory functions to adopt standards while the UKEB is being established. The regulations also bring into UK law all EU-endorsed IFRS as at the end of the transition period.
Once the UKEB is sufficiently established, further regulations will be made to sub-delegate these functions to the UKEB, including statutory responsibility to:
- implement the framework for endorsing and adopting new IFRS. The framework will ensure a high degree of transparency and international comparability of financial statements and the efficient allocation of capital, including the smooth functioning of capital markets in the United Kingdom
- participate in and contribute to the development of a single set of international accounting standards
Operations
The UKEB’s operations will be underpinned by its guiding principles of accountability, independence, transparency and thought leadership. The last of these will ensure that, in addition to endorsement and adoption of IFRS for UK-adopted international accounting standards, the UKEB leads the UK and international debate on the development of international accounting and reporting standards by representing UK views in international fora and through its influencing and research activities.
The UKEB is directly accountable to the Secretary of State for BEIS on how it performs the statutory functions delegated to it. It will also be accountable to the Financial Reporting Council’s Board for its adherence to governance and due process procedures because the FRC supervises company financial reporting overall and sets the corporate governance code. The Secretary of State for BEIS will lay the UKEB’s report on the discharge of its delegated functions before Parliament annually.
Board composition and recruitment
Pauline Wallace has been appointed the inaugural Chair of the UKEB.
The Chair will lead an independent Board of between 7 to 14 members. Recruitment of the Board is ongoing and members will be appointed by the Chair, with approval from the Secretary of State for BEIS following an open competition. Board membership will represent a diversity of backgrounds and expertise.
Timeline and transition measure
To ensure continuity for companies, a transition measure is in place. As set out above, this measure means that the Secretary of State for BEIS will endorse and adopt IFRS from the end of the transition period until the UKEB is ready to take on its functions and they have been delegated. The intention is to delegate the functions and powers to the UKEB as soon as it is sufficiently established, currently expected to occur in early 2021.