The IASB is set to unveil illustrative examples to enhance how companies report uncertainties, especially those related to climate. Expect the near-final draft by Q3 2025, with the final document landing in October.
Key Points
•📅 Timeline: Near-final draft to be published in Q3 2025
•🌍 Focus: Climate-related scenarios to illustrate reporting principles
•💬 Feedback Driven: Developed in response to stakeholder concerns
The International Accounting Standards Board (IASB) is gearing up to improve how companies report uncertainties in their financial statements. Using climate-related scenarios, the IASB has crafted seven illustrative examples that aim to address inconsistencies in disclosures.
Responding to stakeholder feedback, these examples show how IFRS Accounting Standards apply when reporting uncertainties. This initiative is a step towards clearer, more consistent financial reporting.
📝 What to Expect
Andreas Barckow, Chair of the IASB, highlighted the importance of early insight into these examples. He noted, > "By publishing a near-final draft, we aim to provide companies early sight of these illustrative examples so as to help them understand what is coming their way."
The near-final draft is slated for release in the third quarter of 2025, giving companies ample time to prepare and adapt.
🎯 The Final Countdown
Mark your calendars for October 2025, when the IASB expects to issue the final document. This release will be crucial for companies looking to align their reporting practices with the new guidelines.
The focus on climate-related scenarios underscores the growing importance of environmental factors in financial reporting, ensuring that uncertainties are transparently communicated.
