EFRAG backs IASB climate-related uncertainty guidance
The European Financial Reporting Advisory Group (EFRAG) has published its Final Comment Letter on the International Accounting Standards Board (IASB)’s Exposure Draft (ED) on “Climate-related and Other Uncertainties in the Financial Statements – Proposed Illustrative Examples”.
EFRAG backs the examples, which aim to bring clarity to how climate-related uncertainties are addressed in financial statements.
In its letter, EFRAG welcomes the examples as a practical tool to improve financial reporting and ensure better alignment with stakeholder expectations. It calls for swift finalisation of the ED, with suggested refinements, including clarifying IAS 1 requirements and expanding the examples to cover non-climate-related uncertainties. EFRAG also highlights the importance of stronger connections between financial statements and other parts of the annual report.
For XBRL practitioners, clearer examples mean better-quality tagging and more consistent reporting of risks. By providing structured, standardised guidance, these enhancements could make digital filings more transparent and easier to analyse.
Read EFRAG’s full comment letter here.
