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The IFRS Foundation has today published an updated version of its educational material developed to help companies determine how to consider climate-related matters when preparing their financial statements applying IFRS Accounting Standards.

IFRS Accounting Standards are developed by the International Accounting Standards Board (IASB) and do not refer explicitly to climate-related matters. However, the IASB’s Standards require companies to consider climate-related matters in their financial statements if the effects of those matters are material. The educational material sets out examples of situations in which companies applying the IASB’s Standards might need to consider the effects of climate-related matters in their financial statements.

The educational material was first published in 2020. The IFRS Foundation is publishing this updated version in light of developments including the International Sustainability Standards Board’s (ISSB) inaugural IFRS Sustainability Disclosure Standards, issued on 26 June 2023. Consideration of the ISSB’s Standards, together with the educational materials, may help companies better identify matters, including climate change, that affect the financial statements and help companies apply IFRS Accounting Standards.  

The IASB is also working on a project on Climate-related Risks in the Financial Statements to explore whether and how financial statements can better communicate information about climate-related risks. The IASB will consider whether to include in the scope of the project sustainability-related risks and opportunities beyond those related to climate.

Educational material is also available on how the IFRS for SMEs® Accounting Standard requires companies to consider climate-related matters that have a material effect on the financial statements.

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Applying IFRS Accounting Standards