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