IFRS IC – Tentative Agenda Decision: Climate-related Commitments (IAS 37)


The IFRS Interpretations Committee (the Committee) published its Tentative Agenda Decision: Climate-related Commitments (IAS 37) in December 2023. Our response to the Committee was submitted on 5th February 2024.


In November 2023, the Committee discussed a submission asking it to clarify how IAS 37 Provisions, Contingent Liabilities and Contingent Assets applies to climate-related commitments.

The Tentative Agenda Decision presents the Committee’s technical analysis for the relevant fact pattern.

Based on its analysis, the Committee concluded that the principles and requirements in IFRS Accounting Standards provide an adequate basis for an entity to determine:

  • the circumstances in which an entity recognises a provision for the costs of fulfilling a commitment to reduce or offset its greenhouse gas emissions; and
  • if a provision is recognised, whether the costs are recognised as an expense or as an asset when the provision is recognised.

Consequently, the Committee tentatively decided not to add a standard-setting project to its work plan.


As noted in the Project Initiation Plan (attached below), due to the short timeline for this project, our stakeholder outreach focused on engagement with UKEB Advisory Group members.

Final Comment Letter

The UKEB’s final comment letter agrees with the overall conclusion in the Tentative Agenda Decision but suggests some amendments to enhance the clarity of the technical analysis and to help reduce the risk of unintended consequences.

The UKEB Final Comment Letter is attached below.

UKEB meetings

The Committee’s Tentative Agenda Decision was discussed in the following UKEB meetings:

  • 14 December 2023 – Agenda Item 6 IASB General Update – Appendix B.
  • 30 January 2024 – Agenda item 6 – IFRS IC Tentative Agenda Decision – Comment Letter.