LATEST UPDATE

IASB Issues Illustrative Examples on Reporting Uncertainties in Financial Statements

The International Accounting Standards Board (IASB) has issued illustrative examples demonstrating how companies may apply IFRS Accounting Standards when reporting the effects of uncertainties in their financial statements. The examples use climate-related scenarios as practical illustrations, but the underlying principles apply more broadly to all uncertainties.

According to stakeholders, the information companies provide about the effects of uncertainties is sometimes insufficient, or appears inconsistent with the information provided outside their financial statements. To help address this, the IASB developed these illustrative examples to improve the application of existing disclosure requirements, with stakeholder feedback.

These illustrative examples do not have an effective date, but companies should implement any change in their reporting on a timely basis.

IFRS Digital Subscribers may access Disclosures about Uncertainties in the Financial Statements – Illustrative examples and the Basis for Conclusions via the IFRS Standards Navigator on: https://www.ifrs.org/issued-standards/list-of-standards/

To subscribe to IFRS Digital, go to: https://www.ifrs.org/products-and-services/ifrs-digital/

They are also available to purchase as a PDF in the IFRS Foundation Shop on: https://shop.ifrs.org/product-detail?id=2236