The IFRS Foundation has published a set of near-final examples designed to assist companies in providing clearer, more consistent disclosures about significant uncertainties within their financial statements. Leveraging climate-related scenarios for practical illustration, this early release aims to support entities in the timely and correct application of IFRS Accounting Standards concerning uncertainty.
While the illustrative examples prominently feature climate-related uncertainties – such as asset impairments, provisions, and going concern assessments impacted by climate risks – the underlying guidance is applicable to all types of material uncertainties entities may face. The examples demonstrate practical application of existing IFRS requirements (particularly IAS 1 Presentation of Financial Statements) to enhance transparency around judgments, estimates, and potential future impacts affecting financial positions and performance.
This initiative by the International Accounting Standards Board (IASB) responds directly to stakeholder feedback calling for improved and more consistent reporting on uncertainties, especially those linked to climate change. Recognizing the challenges entities face in providing comparable information, the IASB collaborated closely with the International Sustainability Standards Board (ISSB) during development. This ensures the financial reporting examples complement and align effectively with the sustainability disclosures required under the ISSB Standards (IFRS S1 and S2), promoting cohesive reporting across financial statements and sustainability reports.
“The market has consistently asked for greater clarity on how to report uncertainties, particularly climate-related uncertainties, in the financial statements,” noted an IASB representative. “These near-final examples, developed with the ISSB, provide practical illustrations of applying IFRS Accounting Standards to meet that demand and improve the consistency and usefulness of information for investors.”
The release of these near-final examples allows companies and stakeholders to familiarize themselves with the guidance ahead of final publication, facilitating smoother implementation. The examples are available now on the IFRS Foundation website.
Source: IFRS, 24 July 2025.