IASB PUBLISHES NEAR-FINAL DRAFT OF ILLUSTRATIVE EXAMPLES: DISCLOSURES ABOUT UNCERTAINTIES IN THE EXA

IASB PUBLISHES NEAR-FINAL DRAFT OF ILLUSTRATIVE EXAMPLES: DISCLOSURES ABOUT UNCERTAINTIES IN THE EXA

IASB PUBLISHES NEAR-FINAL DRAFT OF ILLUSTRATIVE EXAMPLES: DISCLOSURES ABOUT UNCERTAINTIES IN THE EXAMPLES

Background
In March 2023, the International Accounting Standards Board (IASB) decided to explore targeted actions to improve the reporting of the effects of climate-related risks in the financial statements. The IASB concluded that examples illustrating the application of IFRS® Accounting Standards to climate-related uncertainties would be most helpful in responding to the concerns of the stakeholders. After completing their deliberations, on 24 July 2025 the IASB issued a near-final staff draft of Disclosures about Uncertainties in the Financial Statements Illustrated using Climate-related Examples which would be included as examples in the relevant IFRS Accounting Standards. The final version of the illustrative examples is expected to be issued in October 2025 with accompanying bases for conclusion.

Materiality judgements
The IASB developed example 1 to respond to stakeholder concerns about a perceived disconnect between information about the effects of climate-related risks disclosed in the financial statements and information provided outside the financial statements (e.g. in sustainability reporting). This example aims to help entities to make materiality judgements as per IAS 1 Presentation of Financial Statements (IAS 1.31) and IFRS 18 Presentation and Disclosure in Financial Statements (IFRS 18.20).

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