🌍IFRS Foundation Shines a Light on Climate Uncertainties

Acclara AI•July 24, 2025

The IFRS Foundation just dropped near-final examples on how companies can better report uncertainties in financial statements using climate-related scenarios. It's a handy guide for more transparent disclosures.

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Key Points

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- 📅 Timeline: Final examples expected in October 2025
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- 🌱 Climate Focus: Uses climate-related examples for practical illustration
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- 🏢 Broad Application: Guidance applies to all types of uncertainties
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- 🤝 Collaboration: Developed in partnership with the ISSB
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- 🗣️ Expert Insight: Andreas Barckow highlights the early visibility for companies

🔍 The Big Reveal

The IFRS Foundation has just unveiled near-final examples aimed at helping companies enhance their reporting of uncertainties in financial statements. While these examples are rooted in climate-related scenarios, the guidance is versatile enough to apply to various uncertainties. This proactive move is designed to support timely and informed application of the standards.

🌱 Why Climate Matters

Although the examples focus on climate-related fact patterns, they serve a broader purpose. Companies can use these guidelines to improve their overall disclosure of uncertainties, making their financial statements more transparent and reliable. The International Accounting Standards Board (IASB) developed these examples in response to feedback about the lack of sufficient information on uncertainties, especially those related to climate change.

🤝 A Collaborative Effort

The IASB didn't do this alone. They teamed up with the International Sustainability Standards Board (ISSB) to ensure that the examples align seamlessly with the ISSB’s sustainability-related disclosure requirements. This collaboration aims to create a cohesive framework for companies to follow, enhancing the consistency and comparability of disclosed information.

"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.