New Illustrative Examples of Disclosures about Uncertainties in Financial Statements

Thursday, January 29, 2026

The AASB has issued AASB 2026-1 adding new illustrative examples of disclosures about uncertainties in estimating the recoverable amount of assets and decommissioning and restoration liabilities.

AASB 2026-1 Amendments to Australian Accounting Standards – Disclosures about Uncertainties in the Financial Statements introduces new illustrative examples to accompany AASB 136 Impairment of Assets and AASB 137 Provisions, Contingent Liabilities and Contingent Assets. 

These examples illustrate how an entity applies the requirements of those Standards to report the effects of uncertainties in its financial statements. In particular, the examples demonstrate:  

• in relation to AASB 136 – how an entity discloses information about the key assumptions used to determine the recoverable amounts of assets; and  

• in relation to AASB 137 – how an entity might disclose information about plant decommissioning and site-restoration obligations even if their effect on the carrying amount of the entity’s plant decommissioning and site-restoration provision is immaterial.  

AASB 2026-1 applies to annual periods beginning on or after 1 July 2025 that end on or after 28 February 2026. The examples can be considered when preparing financial statements for the 2025/26 financial year. Earlier application is permitted. 

In addition to these examples, the IASB has added new examples to four other Standards – IFRS 7, IFRS 18, IAS 1 and IAS 8. These new examples are not included in AASB 2026-1 because the AASB did not publish the original IASB examples alongside the corresponding AASB Standards. However, they are available to Australian users on the AASB website, via the IASB Support Materials page, where they are linked at the bottom of the page with reference to AASB 2026-1.