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IFRS & IASB: Illustrative examples on reporting uncertainties in financial statements
- 11 December 2025
- Accounting
- South African Accounting Academy
Summary:
The International Accounting Standards Board (IASB) has issued updated illustrative examples demonstrating how companies can apply IFRS Accounting Standards when reporting the effects of uncertainties in their financial statements.
Article:
This final Exposure Draft is titled: Illustrative Examples and Implementation Guidance on Risk Mitigation Accounting (Proposed amendments to IFRS 9 and IFRS 7). The examples issued today differ from the near-final draft (which was published late July 2025) only in minor editorial details. Refer to our previous Alert dated 27 August 2025
The examples use climate-related scenarios as practical illustrations, but the underlying principles apply more broadly to all uncertainties.
Amendments to Illustrative Examples include those on on IFRS 7, IFRS 18, IAS 1, IAS 8, IAS 36 and IAS 37
Stakeholders told the IASB that 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. In finalising the examples, the IASB also considered stakeholder feedback.
As accompanying materials to IFRS Accounting Standards, these illustrative examples do not have an effective date. However, companies would be expected to implement any change in their reporting on a timely basis.
The deadline for comments is 31 July 2026.
Click here to download the document:
Relevance to Auditors, Independent Reviewers & Accountants:
- It is important to stay informed on publications issued by the regulators and standard-setters, e.g. IFAC, ISSB, etc.
- As an auditor, independent reviewer, accountant or practitioner, you ned to be aware of the latest guidance on sustainability issued by relevant regulators, such as the IFRS Foundation.
- This document provides guidance on how companies can improve the reporting of uncertainties in their financial statements using climate-related examples as practical illustrations.
Relevance to Your clients:
- It is important to stay informed on publications issued by the regulators and standard-setters, e.g. IFAC, IFRS Foundation, ISSB, etc.
- This document provides guidance on how companies can improve the reporting of uncertainties in their financial statements using climate-related examples as practical illustrations.