Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty's Government whether the UK Endorsement Board will be provided with publicly available legal advice to deliver the required endorsement criteria for the adoption of International Accounting Standards; and what processes they have in place to ensure that this advice will be free from conflicts of interest.

We intend to lay an SI in early 2021 that will delegate certain functions in the International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019 (‘the 2019 Regulations’), including powers to endorse and adopt International Accounting Standards, to the UK Accounting Standards Endorsement Board (UK EB). This includes International Accounting Standards (such as IFRS 17 – Insurance Contracts) that relate to insurance.

Following the appointment of the Chair, we are now preparing to recruit Board Members. We intend that membership of the Board will include preparers of accounts, investors and other users of accounts, academics and members of accounting firms. This will ensure that the UK EB brings a broad range of experience, backgrounds and expertise to the consideration of International Accounting Standards.

The UK EB will undertake its activities in a transparent manner, and it will be required both to consult before adopting an international standard and to publish the reasons for its decision to adopt an International Accounting Standard in whole or in part. The statutory criteria for adoption are set out in the 2019 Regulations. The UK EB will obtain independent advice when necessary and all Board Members will be required to abide by a conflicts of interests policy.