The UK Accounting Standards Endorsement Board, the new body responsible for the adoption of international accounting standards for use by UK companies, is one step closer to being officially launched after it was successfully passed through the House of Commons.
The creation of the UK Endorsement Board (UKEB) has been established as a result of Brexit, as the body takes over the support of international accounting standards from the European Financial Reporting Advisory Group (EFRAG).
What will the UKEB do?
The UKEB will have two primary functions:
- Endorse new or amended international accounting standards on behalf of the UK
- Influence the development of the IFRS for the benefit of the UK
Research will be conducted by the board to ensure that the UK stays at the forefront of developing opinions in accounting. In order to preserve the UK’s place as a leading financial hub and to uphold the highest international accounting standards, the board will actively contribute to influencing the development of financial reporting internationally.
Reporting to the Secretary of State for Business, Energy and Industrial Strategy (BEIS) on technical matters, the board will have its report on the discharge of its delegated functions presented before parliament once a year. It will also report to the Financial Reporting Council board regarding any governance or due process procedures.
Other technical and policy insight will be provided through observers with speaking rights, these include contributors from HM Treasury, HM Revenue and Customs, the Financial Conduct Authority, and the Bank of England.
Who will form the UKEB?
In a move embraced by the FRC, ten new members were appointed in March by the Chair of the UKEB, Pauline Wallace, to form the board.
She explains: ‘Following an open call for nominations and a rigorous recruitment process, we have selected a group of individuals who bring both diversity and a wealth of experience, knowledge and expertise that will ensure that the UK’s contributions to developments in international accounting standards are world-leading.’
FRC CEO, Sir Jon Thompson said: ‘I welcome the appointment of UKEB board members who will play a key role in influencing the development of IFRS and endorsing them for use in the UK.’
The board is formed of members with diverse backgrounds, ranging from academics to auditors, which include Philip Aspin, Chief Financial Officer of the United Utilities Group; Giles Mullins, UK Head of the Financial Reporting Advisory Group and Special Projects at Grant Thornton UK; and Amir Amel-Zadeh, Associate Professor at Saïd Business School, University of Oxford.
UKEB chair, Pauline Wallace said: ‘I am confident that the UK Endorsement Board will be instrumental in helping develop and adopt international standards that serve the UK’s long term public good.’
Keep up to date with the UK Accounting Standards Endorsement Board through their website.
Chloe Weaver
As Ideagen’s Content Marketing Executive, Chloe produces engaging content to inform and educate customers on the intricate world of quality, audit, risk and compliance. With a journalistic background in renewable and nuclear energy, Chloe is passionate about creating content to educate, enlighten and inspire customers.