EFRAG issues a draft comment letter on climate-related uncertainties in financial statements

Posted on September 29, 2024 by Editor

EFRAG has issued a Draft Comment Letter (DCL) in response to the IASB's Exposure Draft on Climate-related and Other Uncertainties in the Financial Statements - Proposed Illustrative Examples.

The Exposure Draft aims to provide guidance on how to reflect climate-related and other uncertainties in financial reporting under IFRS Accounting Standards.

In its DCL, EFRAG welcomes the illustrative examples as a useful tool for applying IFRS standards but suggests they are only a first step in addressing stakeholder concerns. EFRAG encourages the IASB to develop more examples and explore standard-setting activities to ensure these uncertainties are adequately reflected in financial statements.

It also stresses the importance of clarifying the connections between financial statements and other sections of annual reports, potentially through a Sustainability Reporting Conceptual Framework.

Feedback on EFRAG's DCL can be submitted until 15 November 2024. Find out more here.