The International Accounting Standards Board (IASB) has released a near-final draft, applicable to Tier 1 and Tier 2 for-profit entities, of illustrative examples designed to help entities report climate-related and other uncertainties in their financial statements.
Near-final illustrative examples on climate-related and other uncertainties in financial statements
This near-final version has been made publicly available ahead of formal publication expected in October 2025, to give preparers an early opportunity to familiarise themselves with the content and consider how it may be relevant in upcoming reporting periods. The examples are non-authoritative.
This initiative responds to stakeholder feedback that:
- climate-related risks are not always adequately reflected in financial statements; and
- financial statements may appear disconnected from other reports such as climate-reporting disclosures.
The examples offer practical insights which are intended to clarify how existing NZ IFRS Accounting Standards apply to climate-related scenarios but also more broadly to other uncertainties. These examples are based on NZ IFRS Accounting Standards requirements that are already in effect assisting entities to enhance the clarity and consistency of their financial reporting.
Access the IASB’s near-final staff draft:
Near-final staff draft-Disclosures about Uncertainties in the Financial Statements Illustrated using Climate-related Examples
What does this mean for you?
Consider using the examples, if relevant to your entity, to support clearer, more consistent financial reporting.