1. Home
  2. Projects
  3. Climate-related and Other Uncertainties in the Financial Statements
  1. Projects

Climate-related and Other Uncertainties in the Financial Statements

Project Type:

Influencing

Status:

Active

Milestone:

Monitoring

Completed Date: 16 December 2024

The IASB issued an Exposure Draft: IASB/ED/2024/6  Climate-related and Other Uncertainties in the Financial Statements - Proposed illustrative examples on 31 July 2024.

The illustrative examples are proposed to accompany IFRS Accounting Standards and will therefore not form an integral part of the Standards. Consequently, the ED does not contain an effective date or any transition requirements.

The IASB will consider all comments received in writing by 28 November 2024.

Background

The IASB received strong feedback from stakeholders in its Third Agenda Consultation indicating concerns regarding the effects of climate-related risks in the financial statements and the level consistency with information outside the financial statements.

The Exposure Draft contains a series of eight illustrative examples which indicate how an entity could apply the requirements in IFRS Accounting Standards to report the effects of climate-related and other uncertainties in its financial statements. The IASB has sought to reinforce compatibility with IFRS Sustainability Disclosure Standards when developing the examples.

The IASB staff circulated eight draft illustrative examples which were discussed at the March 2024 IFRS Accounting Standards Advisory Forum (ASAF) and the March and April 2024 IASB meetings. The UKEB also noted stakeholder feedback on those draft examples at its April 2024 meeting (Appendix D: Climate-related matters).

Illustrative Examples

The eight examples are listed below for information and further detailed in the Exposure Draft:

  • Example 1—Materiality judgements leading to additional disclosures (IAS 1/IFRS 18)
  • Example 2—Materiality judgements not leading to additional disclosures (IAS 1/IFRS 18)
  • Example 3—Disclosure of assumptions: specific requirements (IAS 36)
  • Example 4—Disclosure of assumptions: general requirements (IAS 1/IAS 8)
  • Example 5—Disclosure of assumptions: additional disclosures (IAS 1/IFRS 18)
  • Example 6—Disclosure about credit risk (IFRS 7)
  • Example 7—Disclosure about decommissioning and restoration provisions (IAS 37)
  • Example 8—Disclosure of disaggregated information (IFRS 18)

Next Steps

The IASB will review stakeholder feedback received on the Exposure Draft by Q1, 2025.

Outreach

The UKEB outreach on this project has included discussions with UKEB working and advisory groups, public consultation, including one to one interviews with preparers, users, and their representative bodies. For more information, see the Feedback Statement (below).

Final Comment Letter

All responses received were considered when finalising the Comment Letter. The UKEB Comment Letter was published on 3 December 2024. An accompanying Feedback Statement, describing how feedback received from stakeholders was addressed, was also published on the same date.

The following relevant documents are available at the foot of this page:

  1. Draft Comment Letter and Invitation to Comment
  2. Responses from stakeholders
  3. Final Comment Letter
  4. Feedback Statement

UKEB Meetings

Meeting(s) related to the project are as follows:

Subscribe to updates

Timeline

Latest Project Updates

Related Projects

Related Standards