{"id":"F2026L00062","name":"Accounting Standard AASB 2026-1 Amendments to Australian Accounting Standards – Disclosures about Uncertainties in the Financial Statements","slug":"accounting-standard-aasb-2026-1-amendments-to-australian-accounting-standards-disclosures-about-unce","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":107670,"registerId":"commonwealth-F2026L00062-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Obtaining a copy of this Accounting Stan","sectionType":"part","heading":"Obtaining a copy of this Accounting Standard","content":"# Obtaining a copy of this Accounting Standard\n\nThis Standard is available on the AASB Digital Standards Portal (standards.aasb.gov.au), which can also be accessed from aasb.gov.au.\n\nAustralian Accounting Standards Board\n\nPO Box 204\n\nCollins Street West\n\nVictoria 8007\n\nAUSTRALIA\n\nPhone: (03) 9617 7600\n\nE-mail: standard@aasb.gov.au\n\nWebsite: www.aasb.gov.au","sortOrder":0},{"sectionNumber":"Other enquiries","sectionType":"part","heading":"Other enquiries","content":"# Other enquiries\n\nPhone: (03) 9617 7600\n\nE-mail: standard@aasb.gov.au\n\nCOPYRIGHT\n\n© Commonwealth of Australia 2026\n\nThis AASB Standard contains IFRS Foundation copyright material. Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use subject to the inclusion of an acknowledgment of the source. Requests and enquiries concerning reproduction and rights for commercial purposes within Australia should be addressed to The Managing Director, Australian Accounting Standards Board, PO Box 204, Collins Street West, Victoria 8007.\n\nAll existing rights in this material are reserved outside Australia. Reproduction outside Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use only. Further information and requests for authorisation to reproduce IFRS Foundation copyright material for commercial purposes outside Australia should be addressed to the IFRS Foundation at www.ifrs.org.\n\nISSN 1036-4803","sortOrder":1},{"sectionNumber":"Contents","sectionType":"part","heading":"Contents","content":"# Contents\n\nPreface\n\nAccounting Standard\n\nAASB 2026-1 Amendments to Australian Accounting Standards – Disclosures about Uncertainties in the Financial Statements\n\nfrom page\n\nObjective 5\n\nApplication 5\n\nAmendments to AASB 136 5\n\nAmendments to AASB 137 6\n\nCOMMENCEMENT OF THE LEGISLATIVE INSTRUMENT 7\n\naVailable on the AASB website\n\nIASB Illustrative Examples – Amendments\n\nIASB Bases for Conclusions – Amendments\n\nAustralian Accounting Standard AASB 2026-1 Amendments to Australian Accounting Standards – Disclosures about Uncertainties in the Financial Statements is set out on pages 5–7. All the paragraphs have equal authority.","sortOrder":2},{"sectionNumber":"Preface","sectionType":"part","heading":"Preface","content":"# Preface\n\n## Standards amended by AASB 2026-1\n\nThis Standard makes amendments to AASB 136 Impairment of Assets (August 2015) and AASB 137 Provisions, Contingent Liabilities and Contingent Assets (August 2015).\n\nThese amendments arise from the issuance of International Financial Reporting Standard Disclosures about Uncertainties in the Financial Statements (Amendments to Illustrative Examples on IFRS 7, IFRS 18, IAS 1, IAS 8, IAS 36 and IAS 37) by the International Accounting Standards Board (IASB) in November 2025, which introduced new illustrative examples for those Standards.\n\nThe examples added by the IASB to the Illustrative Examples accompanying IAS 36 Impairment of Assets and the Implementation Guidance accompanying IAS 37 Provisions, Contingent Liabilities and Contingent Assets are incorporated into the Illustrative Examples accompanying AASB 136 and the Implementation Guidance accompanying AASB 137 through this amending Standard. The remaining new examples (relating to IFRS 7, IFRS 18, IAS 1 and IAS 8) are not included in this amending Standard as the illustrative examples or implementation guidance accompanying those Standards has not been published with the corresponding AASB Standards. Instead, those examples are accessible to users of the AASB website in Australia on the IASB Support Materials page.\n\n## Main features of this Standard\n\nMain requirements\n\nThis Standard amends AASB 136 and AASB 137 to add additional illustrative examples to their accompanying guidance. The objective of the new examples is to illustrate how an entity applies the requirements of the Standards to report the effects of uncertainties in its financial statements. In particular, the examples demonstrate:\n\n(a) in relation to AASB 136 – how an entity discloses information about the key assumptions it uses to determine the recoverable amounts of assets; and\n\n(b) 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. \n\nApplication date\n\nThis Standard applies to annual periods beginning on or after 1 July 2025 that end on or after 28 February 2026. Earlier application is permitted.","sortOrder":3},{"sectionNumber":"Standards amended by AASB 2026-1","sectionType":"part","heading":"Standards amended by AASB 2026-1","content":"## Standards amended by AASB 2026-1\n\nThis Standard makes amendments to AASB 136 Impairment of Assets (August 2015) and AASB 137 Provisions, Contingent Liabilities and Contingent Assets (August 2015).\n\nThese amendments arise from the issuance of International Financial Reporting Standard Disclosures about Uncertainties in the Financial Statements (Amendments to Illustrative Examples on IFRS 7, IFRS 18, IAS 1, IAS 8, IAS 36 and IAS 37) by the International Accounting Standards Board (IASB) in November 2025, which introduced new illustrative examples for those Standards.\n\nThe examples added by the IASB to the Illustrative Examples accompanying IAS 36 Impairment of Assets and the Implementation Guidance accompanying IAS 37 Provisions, Contingent Liabilities and Contingent Assets are incorporated into the Illustrative Examples accompanying AASB 136 and the Implementation Guidance accompanying AASB 137 through this amending Standard. The remaining new examples (relating to IFRS 7, IFRS 18, IAS 1 and IAS 8) are not included in this amending Standard as the illustrative examples or implementation guidance accompanying those Standards has not been published with the corresponding AASB Standards. Instead, those examples are accessible to users of the AASB website in Australia on the IASB Support Materials page.","sortOrder":4},{"sectionNumber":"Main features of this Standard","sectionType":"part","heading":"Main features of this Standard","content":"## Main features of this Standard\n\nMain requirements\n\nThis Standard amends AASB 136 and AASB 137 to add additional illustrative examples to their accompanying guidance. The objective of the new examples is to illustrate how an entity applies the requirements of the Standards to report the effects of uncertainties in its financial statements. In particular, the examples demonstrate:\n\n(a) in relation to AASB 136 – how an entity discloses information about the key assumptions it uses to determine the recoverable amounts of assets; and\n\n(b) 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. \n\nApplication date\n\nThis Standard applies to annual periods beginning on or after 1 July 2025 that end on or after 28 February 2026. Earlier application is permitted.","sortOrder":5},{"sectionNumber":"Accounting Standard AASB 2026-1","sectionType":"part","heading":"Accounting Standard AASB 2026-1","content":"# Accounting Standard AASB 2026-1\n\nThe Australian Accounting Standards Board makes Accounting Standard AASB 2026-1 Amendments to Australian Accounting Standards – Disclosures about Uncertainties in the Financial Statements under section 334 of the Corporations Act 2001.\n\nKeith Kendall\n\nDated 28 January 2026 Chair – AASB","sortOrder":6},{"sectionNumber":"Objective","sectionType":"part","heading":"Objective","content":"## Objective\n\nThis Standard amends AASB 136 Impairment of Assets (August 2015) and AASB 137 Provisions, Contingent Liabilities and Contingent Assets (August 2015) as a consequence of the issuance of International Financial Reporting Standard Disclosures about Uncertainties in the Financial Statements (Amendments to Illustrative Examples on IFRS 7, IFRS 18, IAS 1, IAS 8, IAS 36 and IAS 37) by the International Accounting Standards Board in November 2025.","sortOrder":8},{"sectionNumber":"Application","sectionType":"part","heading":"Application","content":"## Application\n\nThe amendments set out in this Standard apply to entities and financial statements in accordance with the application of AASB 136 and AASB 137 set out in AASB 1057 Application of Australian Accounting Standards.\n\nThis Standard applies to annual periods beginning on or after 1 July 2025 that end on or after 28 February 2026. Earlier application is permitted.\n\nThis Standard uses typographical material to identify the amendments to AASB 136 and AASB 137 in order to make the amendments more understandable. However, the amendments made by this Standard do not include that typographical material. Ellipses (…) are used to help provide the context within which amendments are made and also to indicate text that is not amended.","sortOrder":9},{"sectionNumber":"Amendments to AASB 136","sectionType":"part","heading":"Amendments to AASB 136","content":"## Amendments to AASB 136\n\nIllustrative examples accompanying AASB 136\n\n| Paragraphs IE90–IE95, their related headings and the italicised introductory text are added as Example 10. |\n| ---------------------------------------------------------------------------------------------------------- |\n\nExample 10 Disclosure of assumptions related to uncertainties\n\nThis example illustrates the requirements in paragraphs 134(d)(i)–(ii) and 134(f) of AASB 136. In particular, it illustrates how an entity discloses information about the key assumptions it uses to determine the recoverable amounts of assets.\n\nBackground\n\n    IE90 The entity’s operations result in a high amount of greenhouse gas emissions. The entity is subject to greenhouse gas emission regulations in some of the jurisdictions in which it operates. Those regulations require the entity to acquire emission allowances for some of its emissions, resulting in costs (emission allowance costs).\\* The entity expects such regulations to become more widespread in the future.\n    \\* This example illustrates only the entity’s consideration of emission allowance costs when testing an asset for impairment and its disclosure of information about related key assumptions. The example does not cover, for example, other costs an entity might incur in managing climate-related risks.\n    IE91 The entity has allocated a significant amount of goodwill to one of its cash-generating units (CGUs) and tests that CGU for impairment at least annually. The entity has concluded that the CGU’s recoverable amount is greater than its carrying amount and, therefore, recognises no impairment loss in the current reporting period. The entity has determined that its assumptions about future emission allowance costs are key assumptions – that is, they are among the assumptions to which the CGU’s recoverable amount is most sensitive.\n\nApplication\n\nReasonable and supportable assumptions\n\n    IE92 The entity measures the value in use of the CGU when testing it for impairment. Applying paragraphs 33–38 of AASB 136 in measuring the CGU’s value in use, the entity bases its cash flow projections on reasonable and supportable assumptions that represent management’s best estimate of the range of economic conditions that will exist in the future. These assumptions include assumptions about future emission allowance costs.\n    IE93 The assumptions about future emission allowance costs include assumptions about the future price of emission allowances and future emission regulations. However, these assumptions do not reflect risks already reflected in the discount rate.\n\nDisclosures\n\nKey assumptions and approach used to determine the values assigned to them\n\n    IE94 Applying paragraph 134(d)(i)–(ii) of AASB 136, the entity discloses:\n    (a) that its key assumptions include future emission allowance cost assumptions, such as the future price of greenhouse gas emission allowances and future emission regulations; and\n    (b) its approach to determining the values assigned to these key assumptions, including whether its assumptions about the future price of greenhouse gas emission allowances and future emission regulations are consistent with external sources of information and, if not, how and why they differ from such sources of information.\n\nSensitivity information\n\n    IE95 Applying paragraph 134(f) of AASB 136, the entity also considers whether a reasonably possible change in a key assumption would cause the CGU’s carrying amount to exceed its recoverable amount – that is, whether such a change in assumption would result in an impairment loss. For example, the entity considers whether an impairment loss would result from a reasonably possible change in the entity’s assumptions about the future price of greenhouse gas emission allowances. If so, the entity discloses:\n    (a) the amount by which the CGU’s recoverable amount exceeds its carrying amount;\n    (b) the values assigned to the assumptions about the future price of greenhouse gas emission allowances; and\n    (c) the amount by which these values must change, after incorporating any consequential effects of that change on the other variables used to measure the recoverable amount, in order for the CGU’s recoverable amount to be equal to its carrying amount.","sortOrder":10},{"sectionNumber":"Amendments to AASB 137","sectionType":"part","heading":"Amendments to AASB 137","content":"## Amendments to AASB 137\n\nGuidance on implementing AASB 137\n\n| Example 2A and the italicised introductory text are added. |\n| ---------------------------------------------------------- |\n\nD Examples: disclosures\n\n...\n\nThe example below illustrates the requirements in paragraph 85 of AASB 137. In particular, it illustrates 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.\n\n| Example 2A Decommissioning and site-restoration obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |\n| ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| BackgroundThe entity is a manufacturer and has plant decommissioning and site-restoration obligations for its facilities. The entity assumes it will continue to maintain and operate some of its facilities for an extremely long time. Consequently, the costs required to settle the obligations related to these facilities will be incurred so far into the future that, when discounted to their present value, their effect on the carrying amount of the entity’s plant decommissioning and site-restoration provision is immaterial. However, the costs to settle the obligations relating to these facilities will be high and there is a significant and increasing risk that the entity might be required to close the facilities earlier than it expects. This risk stems from efforts to transition to a lower-carbon economy, which might include shifting consumer demand for the entity’s products and possible regulatory and policy actions to reduce greenhouse gas emissions in the jurisdictions in which the entity operates.ApplicationParagraph 85 of AASB 137 requires an entity to disclose information for each class of provision. The entity concludes that, although some of its plant decommissioning and site-restoration obligations have an immaterial effect on the carrying amount of its plant decommissioning and site-restoration provision (see the ‘Background’ section), information about these obligations is material. The entity reaches this conclusion after considering, among other factors: |\n| (a) the size of the costs required to settle the obligations – the costs of settling the obligations are high;(b) the risk of early settlement – the risk that the entity might be required to settle the obligations earlier than expected is significant and is increasing; and(c) external climate-related qualitative factors – the industry and jurisdictions in which the entity operates (including the entity’s market, economic, regulatory and legal environments) make the information about the obligations more likely to influence the decisions that primary users of the entity’s financial statements make on the basis of the financial statements.In applying paragraph 85 of AASB 137, the entity discloses information about its plant decommissioning and site-restoration provision. This information includes information about the obligations that have an immaterial effect on the carrying amount of the provision. The information the entity discloses includes:(a) a brief description of the nature of the obligations and the expected timing of the outflows of economic benefits required to settle them.(b) an indication of the uncertainties about the amount or timing of those outflows. Where necessary to provide adequate information, the entity also discloses the major assumptions made concerning future events. These assumptions could include assumptions about the future use of each of the entity’s main facilities – for example, when the entity expects to close the facilities.       |","sortOrder":11},{"sectionNumber":"Commencement of the legislative instrume","sectionType":"part","heading":"Commencement of the legislative instrument","content":"## Commencement of the legislative instrument\n\nFor legal purposes, this legislative instrument commences on 27 February 2026.","sortOrder":12}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"This instrument remains tightly scoped to its original purpose of adding illustrative examples to existing standards. It does not expand beyond the amendments necessitated by the IASB's November 2025 updates, and explicitly excludes examples for standards where AASB has not published corresponding guidance (IFRS 7, IFRS 18, IAS 1 and IAS 8 examples are referenced but not included)."},"complexity_factors":["Short amending instrument (only 3 pages of substantive content)","Limited to adding illustrative examples rather than changing core requirements","Cross-references to two existing standards (AASB 136 and AASB 137) and their specific paragraphs","Conditional application based on financial year dates (annual periods beginning on or after 1 July 2025 that end on or after 28 February 2026)","Incorporates international standards (IFRS/IASB amendments) by reference","Uses technical accounting terminology (value in use, cash-generating units, recoverable amount, provisions) without definitions provided in this instrument","Nested references to paragraph numbers within amended standards (e.g., paragraphs 134(d)(i)-(ii) of AASB 136)"],"plain_english_summary":"AASB 2026-1 amends two Australian accounting rules to improve disclosures about uncertain future costs—clarifying how entities should explain key assumptions for asset impairments (including climate‑related costs like emission allowances) and for provisions such as future cleanup or site restoration. It affects entities required to follow Australian Accounting Standards (notably listed and large companies), improving investor insight into climate and other financial risks. Applies to years beginning on/after 1 July 2025 (or earlier by choice)."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The amendments do not change the substantive scope or accounting requirements of AASB 136 or AASB 137; they incorporate illustrative examples to guide disclosures about uncertainties. The Standard clarifies how to apply existing disclosure paragraphs but does not introduce new recognition, measurement or expanded regulatory reach."},"complexity_factors":["Narrow scope: amendments add illustrative examples only, not new recognition or measurement rules.","Dependence on judgement: examples illustrate disclosures that rely on management’s judgment about what is 'key' or 'material', creating interpretive variability.","Cross‑referencing: examples originate from IASB materials and some related examples remain on the IASB Support Materials page, requiring users to consult multiple sources.","Compliance effort: preparers may need to expand narrative disclosures (assumptions, sensitivity, timing risks) and link those to existing calculations.","Implementation timing: applies to periods from 1 July 2025, with earlier application permitted, requiring timetable decisions by preparers and auditors."],"plain_english_summary":"This instrument amends AASB 136 and AASB 137 by adding illustrative examples (drawn from the IASB’s November 2025 material) that show how entities disclose uncertainties in financial statements — for example, key assumptions and sensitivity about recoverable amounts (such as emission‑allowance costs) and disclosures about decommissioning/site‑restoration obligations even when their carrying‑amount effect is immaterial. It applies to annual periods beginning on or after 1 July 2025 (ending on or after 28 February 2026). The stated purpose is to illustrate how to meet existing disclosure requirements; preparers and auditors must use judgement to report assumptions, sensitivity ranges and timing risks, producing modest additional disclosure and compliance effort."}},"importantCases":[],"_links":{"self":"/api/acts/accounting-standard-aasb-2026-1-amendments-to-australian-accounting-standards-disclosures-about-unce","history":"/api/acts/accounting-standard-aasb-2026-1-amendments-to-australian-accounting-standards-disclosures-about-unce/history","analysis":"/api/acts/accounting-standard-aasb-2026-1-amendments-to-australian-accounting-standards-disclosures-about-unce/analysis","conflicts":"/api/acts/accounting-standard-aasb-2026-1-amendments-to-australian-accounting-standards-disclosures-about-unce/conflicts","importantCases":"/api/acts/accounting-standard-aasb-2026-1-amendments-to-australian-accounting-standards-disclosures-about-unce/important-cases","documents":"/api/acts/accounting-standard-aasb-2026-1-amendments-to-australian-accounting-standards-disclosures-about-unce/documents"}}