Disclosures about Uncertainties in the Financial Statements Illustrated using Climate-related Examples

The IASB met on 16 June 2025 to discuss the proposals set out in the Exposure Draft Climate-related and Other Uncertainties in the Financial Statements. The IASB discussed:

• the project direction (Agenda Paper 14A); and
• the due process steps taken to begin the process for balloting the illustrative examples (Agenda Paper 14B).

Project direction (Agenda Paper 14A)

The IASB discussed its proposals to issue illustrative examples to help improve the reporting of the effects of climate-related and other uncertainties in the financial statements.

The IASB tentatively decided:

1. to proceed with issuing examples 1–4 and 6–8, with changes to address specific concerns raised by respondents;
2. not to proceed with issuing Example 5;
3. to issue examples 1–4 and 6–8 as illustrative examples accompanying IFRS Accounting Standards; and
4. to retain the project’s objective, which covers climate-related and other uncertainties, and develop no additional examples.

All 14 IASB members agreed with decisions (a) and (c)–(d). Eleven of 14 IASB members agreed with decision (b). 

The IASB tentatively decided to explain that:

1. the illustrative examples would not have an effective date; but
2. the IASB expects an entity to be entitled to sufficient time to implement any changes to the information disclosed in its financial statements as a result of the issuance of the illustrative examples.

Twelve of 14 IASB members agreed with this decision.

The IASB tentatively decided to discuss additional work to facilitate connected financial reporting during its decision-making meeting on its Fourth Agenda Consultation.

All 14 IASB members agreed with this decision.

Due process and permission to begin the balloting process (Agenda Paper 14B)

The IASB discussed due process steps and the request for permission to begin the balloting process for the illustrative examples. The IASB decided to issue the illustrative examples without re-exposure.

All 14 IASB members agreed with this decision.

Two IASB members indicated that they might dissent from issuing the illustrative examples.

All 14 IASB members confirmed they were satisfied the IASB has complied with the applicable due process requirements and has undertaken sufficient consultation and analysis to begin the process for balloting the illustrative examples.