Endorsement of IAS

Endorsement of IAS

Existing EU-adopted IAS                     

At the point of the UK’s exit from the EU, the European Union (Withdrawal) Act 2018 brings into UK law International Accounting Standards (IAS) already endorsed in the EU to provide continuity.

Establishing the UK endorsement body

The draft  International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019 will give power to the Secretary of State to endorse new or amended standards, and to delegate this responsibility to a body. The intention is to delegate these functions to a newly-formed independent UK endorsement body.

This body is likely to be operational during 2019 once the appropriate infrastructure and staff are in place.
The draft regulation is yet to be debated in Parliament. You can follow its progress here. The intention is that these regulations will come into force on EU exit day.

Who will it affect?

All UK companies that apply EU-adopted IAS in their consolidated or individual accounts.


Currently, EU adopted IAS are required to be applied in the consolidated accounts of listed UK companies and may be applied in the parent or individual company accounts of listed UK companies and may be applied by all other companies.  The EU IAS Regulation (1606/2002) is the Regulation which introduced this requirement for all listed companies in the EU. 

The UK Companies Act permits EU-adopted IAS to be applied in the accounts of other companies. 

The EU IAS Regulation requires that, before an IAS can be applied by EU companies, it must go through an endorsement process.
The European Financial Reporting Advisory Group (EFRAG) provides advice to the European Commission on the endorsement of IAS in the EU.