Climate-related and Other Uncertainties in the Financial Statements

The purpose of this IASB project is to explore whether and how financial statements can better communicate information about climate-related and other uncertainties.

In the Third Agenda Consultation, tha IASB stakeholders expressed a view that entities might:

In response to that feedback, the IASB decided to add this maintenance project, which will aim to:

In September 2023, after researching the nature and causes of concern related to the reporting in the financial statements on the effects of climate-related risks, the IASB decided to respond to stakeholder concerns by:

• exploring the development of educational materials and articles (see supporting material);
  
• consulting on some matters with the IFRS Interpretations Committee;
• exploring possible illustrative examples; and
• exploring possible narrow-scope standard-setting in relation to disclosures about estimates.

To help raise awareness of requirements in IFRS Accounting Standards that can be applied to reporting on climate-related risks, translations of the IFRS Foundation’s educational material on the effects of climate-related matters on financial statements is published with other supporting materials as they become available.

This project and the work of the International Sustainability Standards Board (ISSB) complement each other in facilitating connectivity in general purpose financial reports. 

In April 2024 the IASB tentatively decided:

• to provide examples to illustrate how an entity applies IFRS Accounting Standards to report the effects of climate-related and other uncertainties in its financial statements; 
• to include the examples as illustrative examples that would accompany IFRS Accounting Standards; and 
• to publish an exposure draft to obtain feedback from stakeholders about the examples. 

The Exposure Draft is expected in H2 2024.