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IFRS® Accounting Standards

Climate-related and Other Uncertainties in the Financial Statements

Summary

The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to explore whether and how financial statements can better communicate information about climate-related and other uncertainties.

The project aims to research causes of concern about the inconsistent application of IFRS® Accounting Standards to climate-related and other uncertainties, and about insufficient information being disclosed in the financial statements regarding such uncertainties. The boards will also consider whether and what actions might be needed. 

Refer to the IASB Climate-related and Other Uncertainties in the Financial Statements project page for more information.

Staff Contact(s)

Shalini Gupta, CPA, CA Principal, Accounting Standards Board

Phone number  +1 647 956 6628
Email address  [email protected]
Alex Levine, CPA, CA Principal, Accounting Standards Board and Sustainability Reporting

Phone number  +1 604 449 2439
Email address  [email protected]

Project Status

  • Information gathering

    Based on the feedback received through its Third Agenda Consultation, the IASB added this project to its maintenance project pipeline in March 2022

  • Approving project

    The IASB decided to commence work on this project and moved the project to its work plan in March 2023

  • Engaging Communities

    The IASB issued its Exposure Draft, “Climate-related and Other Uncertainties in the Financial Statements,” in July 2024

    The AcSB issued its Exposure Draft that corresponds to the IASB’s Exposure Draft in September 2024

    IASB Exposure Draft
  • Deliberating feedback

    The AcSB submitted its response letter to the IASB in November 2024

    The IASB is deliberating comments on its Exposure Draft

  • Final pronouncement

News

August 22, 2024

International Activity, Document for Comment, News

IASB Exposure Draft – Climate-related and Other Uncertainties in the Financial Statements

The IASB has published its Exposure Draft, “Climate-related and Other Uncertainties in the Financial Statements.” It proposes eight examples to illustrate how companies apply IFRS® Accounting Standards when reporting the effects of climate-related and other uncertainties in their financial statements. Respond directly to the IASB with your feedback by November 28, 2024. Stay tuned for an opportunity to participate in an English-language roundtable to learn more about the proposals and help inform our response to the IASB.

Meeting & event summaries

November 1, 2024

AcSB Decision Summary – October 16, 2024

The AcSB discussed its draft response to the International Accounting Standards Board’s (IASB) Exposure Draft, “Climate-related and Other Uncertainties in the Financial Statements.” The IASB’s Exposure Draft was issued on July 31, 2024, and comments are due November 28, 2024. In developing its response, the AcSB considered feedback received from its outreach with 158 interested and affected parties, including users, preparers, practitioners, and academics. Overall, the AcSB is supportive of the IASB proposing illustrative examples to improve the reporting of the effects of climate-related and other uncertainties in the financial statements. The AcSB decided to recommend improvements to avoid boilerplate disclosures and to ensure that any disclosures suggested through the examples are consistent with:

  • the boundaries of the financial statements; and
  • the concepts of materiality and the primary users of financial statements, as per the Conceptual Framework for Financial Reporting.

The AcSB approved its response for submission to the IASB, subject to drafting changes.

October 11, 2024

AcSB Decision Summary – September 17-18, 2024

The AcSB received an education session on the International Accounting Standards Board’s (IASB) Exposure Draft, “Climate-related and Other Uncertainties in the Financial Statements,” and discussed key points to include in its response. The IASB’s Exposure Draft was issued on July 31, 2024, and comments are due November 28, 2024. In developing the key points to include in its response, the Board considered feedback from a wide range of interested and affected parties, including users, preparers, practitioners, and academics. The Board discussed the need to consider materiality from the perspective of the primary users of the financial statements in applying the IASB’s proposals.

The AcSB will consider further feedback from outreach with interested and affected parties in the coming weeks, including from its public roundtable on September 19, 2024, and responses to its wraparound Exposure Draft (due October 11, 2024). The Board will review and approve its draft response letter at its October 16, 2024, meeting and will submit the final letter to the IASB by the November 28, 2024, deadline.

July 9, 2024

AcSB Decision Summary – June 19-20, 2024

The AcSB discussed its plan to respond to the IASB’s upcoming exposure draft on Climate-related and Other Uncertainties in the Financial Statements. The exposure draft is expected to be issued in July 2024, with a 120-day comment period. The AcSB approved outreach and communications plans, which include gathering feedback from advisory committees and working groups, and holding a public webinar. More information on the public webinar will be shared on our website following the issuance of the exposure draft.

Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal voting process.