Insurance Videos

UK Endorsement Board: Measuring Success

The UK Endorsement Board (UKEB), created during the COVID‑19 lockdown, oversees the endorsement of International Financial Reporting Standards (IFRS) in the United Kingdom. Though it began without face‑to‑face meetings, the board has built a robust rapport with a wide‑ranging stakeholder base, positioning itself as a key conduit between UK market participants and the International Accounting Standards Board (IASB). UKEB’s core function is not merely to rubber‑stamp standards but to shape them. It applies a three‑fold endorsement test—technical quality (reliability, relevance, understandability, comparability), alignment with a true‑and‑fair view, and contribution to the UK’s long‑term public good, such as lowering the cost of capital. The board has already endorsed two full standards—IFRS 17 on insurance and IFRS 18 on performance reporting—and reviewed more than twenty amendments. Board members cite research linking sustainability reporting to cash‑flow statements and intangibles as evidence of their influence. They regularly convene an advisory group of investors, preparers, auditors and academics, and broadcast meetings publicly so IASB staff can observe UK perspectives. Upcoming work includes a post‑implementation review of IFRS 17, scrutiny of the utilities‑sector standard, and the complex risk‑mitigation accounting proposal. By steering high‑quality standards, UKEB aims to reduce reporting burdens, improve market transparency, and ultimately shrink companies’ cost of capital, fostering investment and growth. Its emphasis on research and early engagement with the IASB signals a proactive approach that could set a benchmark for other national endorsement bodies.