IASB publishes exposure draft with examples of climate-related and other uncertainties

On 31 July 2024, the International Accounting Standards Board (IASB) published an Exposure Draft proposing eight Illustrative Examples to illustrate the application of IFRS with regard to climate-related and other uncertainties in financial reporting (ED/2024/6).

The IASB has developed these examples to address stakeholder concerns about insufficient information or inconsistencies with other information about climate-related uncertainties provided outside financial reporting. The eight Illustrative Examples proposed by the IASB aim to:

• Improve the transparency of information in financial reporting; and
• Strengthen the link between financial reporting and other components of a company's reporting.

The Illustrative Examples focus on areas such as the assessment of materiality, the disclosure of assumptions and estimation uncertainties, and the disaggregation of information. The principles outlined in the examples also apply to other, non-climate-related uncertainties.

These additional examples, which are to be included in the Implementation Guidance of the standards concerned, are not intended to amend any IFRS requirements. The Implementation Guidance is not subject to the EU endorsement process.

The deadline for submitting comments is 28 November 2024.

You can download the draft here.