IASB publishes illustrative examples on reporting uncertainties in financial statements

On 28 November 2025, the IASB published illustrative examples demonstrating how entities can apply IFRS Accounting Standards when reporting the effects of uncertainties in their financial statements. The examples use climate-related uncertainties as practical illustrations, but the underlying principles apply more broadly to all uncertainties.

The publication of the final illustrative examples was preceded by the publication of a near-final draft in July 2025 (we reported). The final illustrative examples now published differ slightly from the preliminary version published in July 2025.

As accompanying materials to the IFRS Accounting Standards, these illustrative examples are not an integral part of the IFRS Accounting Standards and are therefore not endorsed in the EU. The illustrative examples do not have an effective date and therefore take immediate effect on European entities. Entities are expected to implement any changes in their reporting on a timely basis.

The illustrative examples are only available from the IASB and subject to a charge. Further information can be found on the IASB’s website.

Background:

Stakeholders had informed the IASB that the information provided by entities on the effects of uncertainties is sometimes insufficient or inconsistent with the information provided outside their financial statements. To address this situation, the IASB has developed these illustrative examples to improve the application of existing disclosure requirements.