Consider the impacts of the forthcoming examples on current reporting

At its June 2025 meeting, the International Accounting Standards Board (IASB) decided to proceed with seven illustrative examples to clarify the reporting of uncertainties in the financial statements. These examples use climate-related scenarios to illustrate how IFRS Accounting Standards apply when reporting uncertainties in the financial statements.

To support timely and informed application, the IASB plans to publish a near-final draft of the examples early in the third quarter of 2025 and expects to issue the final document in October 2025. 

The illustrative examples are not an integral part of any specific standard and, therefore, will not have an effective date. Even though the examples are purely illustrative in nature and do not change the requirements in the standards, they might provide additional insights into how to apply those requirements.

Entities may wish to consider the illustrative examples in their June 2025 year-ends to inform them when developing disclosures on affected topics in their financial statements.

IASB May 2025 agenda paper 14G outlines the most recent drafting of the examples. 

Consult the latest guidance in developing your sustainability disclosures

The ISSB published a new guidance document Disclosing information about an entity’s climate-related transition, including information about transition plans, in accordance with IFRS S2. The document builds on disclosure-specific material developed by the Transition Plan Taskforce (TPT), for which the IFRS Foundation took responsibility in 2024.

The guidance is designed to enable entities to provide high-quality information about their climate-related transition when applying IFRS S2 Climate-related Disclosures and covers disclosures about any ‘transition plan’ an entity has, including both mitigation and adaptation efforts. 

Whilst the guidance does not change the requirements in IFRS S2, it provides further analysis, including industry-specific examples and guidance on how IFRS S2 is applied depending on whether an entity has a strategic transition goal and formal transition plan.

More information: 

• IASB press release
• Guidance document

Use our various resources to help facilitate the June 2025 reporting season

Our grab bag of helpful resources is available to further enhance 2025 corporate reporting:

• Deloitte model financial statements available on our model financial statements page
• The Deloitte Australian financial reporting guide available on our model financial statements page
• Deloitte Clarity publications available on our website
• Deloitte Clarity newsletters available on our website
• Updated Deloitte Closing Out (June 2025) publication available on iasplus.com. 
  

ISSB educational material on GHG emissions disclosure requirements 

The education material is in the form of a questions and answers document and includes questions about the context and reasoning underlying greenhouse gas (GHG) emissions-related requirements, the use of the GHG Protocol, and specific aspects of the GHG emissions-related requirements. The questions are divided into three sections: background, measurement-related requirements and disclosure-related requirements.

Educational material is not part of IFRS Sustainability Disclosure Standards and does not add to or change the requirements in IFRS S2.

The educational material can be accessed on the IFRS Foundation website. 

IASB post-implementation review of IFRS 16 Leases 

The IASB is undertaking a post-implementation review of IFRS 16 to assess whether the accounting standard is overall working as intended. The IASB is requesting feedback on whether IFRS 16 is meeting its intended objective and information about the ongoing costs and benefits of applying the standard. Specifically, the IASB is requesting feedback on some of the more complex areas of the standard, such as lease term, discount rates and variable lease payments. Comments are requested by 15 October 2025. 

More information:

• Request for information
• Press release
• iGAAP in Focus publication

IASB issues revised Practice Statement on Management Commentary

The IASB has issued a revised Practice Statement on management commentary. The revised Practice Statement is effective for financial years beginning on or after 23 June 2025 and supports improvements to, and greater global alignment in, management commentary and narrative reports accompanying the financial statements.

The revised Practice Statement is intended to serve as a global benchmark for regulators to use in updating or developing their national requirements and guidance, and would also provide a comprehensive resource for companies to help meet investors’ information needs.

The AASB is expected to publish an equivalent statement in due course. Adoption of the statement in the Australian context is voluntary, with mandatory requirements for the operating and financial review (OFR) being governed by the Corporations Act 2001 and ASIC guidance.

The revised Practice Statement and a corresponding media release are available on the IFRS Foundation website. Deloitte also issued an iGAAP in Focus publication.

ASIC updates focus areas page for recent developments

ASIC has updated its Financial reporting and audit focus areas page, largely to reflect its recently announced focus areas for FY 2025-2026.

Key updates include:

• Confirming that the focus areas will be updated annually going forward
• Explicitly including revenue as an enduring focus area
• Reflecting the current period focus areas on grandfathered large proprietary companies, registerable superannuation entities and mandatory sustainability reporting.

For more information about the ASIC focus areas, see our May 2025 newsletter.