The IFRS Foundation has published six near-final illustrative examples to help companies apply IFRS Accounting Standards when reporting uncertainties, especially those related to climate scenarios. Developed by the International Accounting Standards Board (IASB) in collaboration with the International Sustainability Standards Board (ISSB), the examples aim to address concerns around inconsistent and insufficient disclosure of material uncertainties.

The examples demonstrate how to apply key IFRS standards—including IAS 1, IFRS 18, IAS 36, IAS 37, and IFRS 7—and cover areas such as:

· Materiality and judgment in climate transition planning

· Impairment assumptions, including emission allowance costs

· Credit risk in climate-sensitive sectors

· PP&E disaggregation by climate vulnerability

· Decommissioning provisions under long-term climate policy uncertainty

While based on climate-related risks, the guidance is broadly applicable to other types of uncertainties. The final release, including accompanying bases for conclusions, is expected in October 2025, with no major revisions anticipated.

The initiative supports greater clarity and consistency in integrating uncertainty into financial reporting, aligned with the ISSB’s sustainability-related disclosure standards.

Stay ahead in sustainability compliance with Global PCCS —where expert insights meet the latest regulations. Unlock a future where compliance fuels sustainability, helping your business thrive in a greener, well-regulated world. For more information, contact us at info@globalpccs.com