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Climate-related and Other Uncertainties in the Financial Statements (Disclosures about Uncertainties in the Financial Statements)

Project Type:

Influencing

Status:

Active

Milestone:

Monitoring

Completed Date: 16 December 2024

Publication of Illustrative Examples

On 28 November 2025, the IASB published the final illustrative examples, Disclosures about Uncertainties in the Financial Statements – Amendments to Illustrative Examples on IFRS 7, IFRS 18, IAS 1, IAS 8, IAS 36 and IAS 37.

They are available from the IFRS Foundation (ifrs.org).

As the illustrative examples do not form part of the mandatory sections of IFRS Accounting Standards, they will not be endorsed in the UK.

The illustrative examples do not have an effective date or any transition requirements. Entities are expected to implement the examples on a timely basis.

The six illustrative examples relate to the following IFRS Accounting Standards:

  • IFRS 18 Presentation and Disclosure in Financial Statements.
  • IAS 8 Basis of Preparation of Financial Statements.
  • IFRS 7 Financial Instruments: Disclosures.
  • IAS 36 Impairment of Assets.
  • IAS 37 Provisions, Contingent Liabilities and Contingent Assets.
  • IAS 1 Presentation of Financial Statements (for periods before an entity applies IFRS 18).

On 31 July 2024 the International Accounting Standards Board (IASB) published an Exposure Draft (ED): IASB ED/2024/6 Climate-related and Other Uncertainties in the Financial Statements – Proposed illustrative examples.

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 connectivity with information outside the financial statements.

The Exposure Draft contained a series of eight illustrative examples which indicated 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 sought to reinforce compatibility with IFRS Sustainability Disclosure Standards when developing the examples.

The proposed examples were discussed at the Accounting Standards Advisory Forum and IASB meetings in 2024, prior to the publication of the ED.

The IASB and ISSB discussed the feedback on the ED at their February 2025 joint meeting, ASAF held an ad-hoc meeting to discuss the feedback in May 2025, and the IASB redeliberated the examples, concluding its discussions in June 2025.

A near-final staff draft of the illustrative examples was issued in July 2025. Please note that these are slightly different from the final published illustrative examples.

A proposed example in the ED illustrating non-climate-related uncertainties was withdrawn in response to stakeholder feedback, and two examples relating to IFRS 18 presented separately in the ED were combined in the final illustrative examples.

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:

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