IFRS Disclosures About Uncertainties: What Finance Leaders Need To Know

The IASB’s 2025 illustrative examples clarify existing IFRS disclosure requirements regarding uncertainties, particularly climate-related risks. They emphasize that materiality includes qualitative factors, requiring transparency in critical assumptions and estimates even when financial impacts appear small. Financial statements must provide a coherent narrative consistent with sustainability reports to meet growing stakeholder expectations. Key themes include linking climate-related matters to credit risk and enhancing disaggregation. These principles apply equally to Ind AS, with regulators expecting companies to reassess their disclosures to ensure they faithfully reflect all significant strategic, economic, or operational uncertainties.

INTRODUCTION

In November 2025, the International Accounting Standards Board (IASB) issued a set of illustrative examples titled Disclosures about Uncertainties in the Financial Statements. These examples were added to the guidance accompanying IFRS 7, IFRS 18, IAS 1, IAS 8, IAS 36 and IAS 37. Although the examples use climate-related scenarios, the principles apply to all forms of uncertainty affecting financial reporting. Importantly, the guidance does not introduce new accounting requirements; instead, it demonstr