IASB publishes 6 near-final examples illustrating how to report uncertainties, using climate-related scenarios.
Aims to improve consistency and clarity in applying IFRS Accounting Standards for material disclosures.
Final guidance expected October 2025; examples align with ISSB’s sustainability-related disclosure rules.
IFRS Foundation Publishes Climate-Based Illustrative Examples for Financial Statement Uncertainty
The IFRS Foundation has released a near-final draft of six illustrative examples demonstrating how companies can apply IFRS Accounting Standards to improve the reporting of uncertainties in their financial statements. These examples, though based on climate-related scenarios, are designed to provide guidance broadly applicable to various types of uncertainties.
Developed by the International Accounting Standards Board (IASB) in collaboration with the International Sustainability Standards Board (ISSB), the examples respond to stakeholder concerns over insufficient and inconsistent disclosures—particularly in areas involving climate risks.
“By publishing the examples in near-final form, we are providing companies with earlier visibility of our work,” said Andreas Barckow, Chair of the IASB.
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What the examples cover
The examples focus on real-world situations and illustrate application of requirements in IAS 1, IFRS 18, IAS 36, IAS 37, IFRS 7, and other standards. Key themes include:
Materiality judgments and assumptions in the face of climate-related transition plans.
Disclosures on impairment assumptions, including emission allowance costs.
Credit risk reporting, especially for sectors exposed to climate impacts.
Disaggregation of property, plant, and equipment (PP&E) based on climate vulnerability.
Decommissioning provisions and uncertainty from long-term climate policies.
These examples will be formally issued with accompanying bases for conclusions in October 2025, but no significant changes are expected before publication.
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