The IASB issued an Exposure Draft: IASB/ED/2024/6 Climate-related and Other Uncertainties in the Financial Statements - Proposed illustrative examples on 31 July 2024.
The illustrative examples are proposed to accompany IFRS Accounting Standards and will therefore not form an integral part of the Standards. Consequently, the ED does not contain an effective date or any transition requirements.
The IASB will consider all comments received in writing by 28 November 2024.
The IASB received strong feedback from stakeholders in its Third Agenda Consultation indicating concerns regarding the effects of climate-related risks in the financial statements and the level consistency with information outside the financial statements.
The Exposure Draft contains a series of eight illustrative examples which indicate how an entity could apply the requirements in IFRS Accounting Standards to report the effects of climate-related and other uncertainties in its financial statements. The IASB has sought to reinforce compatibility with IFRS Sustainability Disclosure Standards when developing the examples.
The IASB staff circulated eight draft illustrative examples which were discussed at the March 2024 IFRS Accounting Standards Advisory Forum (ASAF) and the March and April 2024 IASB meetings. The UKEB also noted stakeholder feedback on those draft examples at its April 2024 meeting (Appendix D: Climate-related matters).
The eight examples are listed below for information and further detailed in the Exposure Draft:
The UKEB outreach plan includes discussions with stakeholders and public consultation on the UKEB’s Draft Comment Letter.
If you would like to contribute to outreach work on this project, please email ukendorsementboard@endorsement-board.uk.
The UKEB published its Draft Comment Letter on 25 September 2024 for public consultation. The consultation closes on 11 November 2024. The relevant documents are available at the end of this page:
The UKEB supports the IASB’s work on this project, while encouraging the IASB to consider whether further standard setting may be required. The UKEB also proposes further enhancements for the IASB to consider.
Meeting(s) related to the project are as follows:
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