Commencement of endorsement of IFRSs by the UK

After UK’s exit from the EU (with transition period ending on 31 December 2020), EU laws ceased to apply to the UK.

For periods commencing on or after 31 December 2020, UK companies that were previously required to comply with IFRSs as adopted by the EU will now need to state compliance with IFRSs as adopted by the UK.

The UK Endorsement Board (UKEB) is being set up as the body responsible for endorsing and adopting new or amended international accounting standards, issued by the IASB for use by UK companies. While UKEB is being established, Secretary of State for the Department for Business, Energy & Industrial Strategy (BEIS) had been empowered to endorse IFRS standards for use by the UK companies.

The Secretary of State for BEIS has now adopted two amendments to IFRSs for use by the UK companies:

• Interest Rate Benchmark Reform— Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)
• Extension of the Temporary Exemption from Applying IFRS 9 (Amendments to IFRS 4)

The adoption status report is available here on the recently launched website of UKEB.