Question to the Department for Business and Trade:

To ask His Majesty's Government, in the light of the joint letter sent by Principles for Responsible Investment and the Institutional Investors Group on Climate Change to the CEO of the Financial Reporting Council (FRC), dated 16 December 2025, what steps they are taking to ensure that the FRC and other regulators ensure that issuers and auditors apply new guidance set out by the International Accounting Standards Board in Disclosures about Uncertainties in the Financial Statements—Illustrative examples, published on 28 November 2025.

The illustrative examples provide guidance to help preparers meet the mandatory requirements within IFRS Accounting Standards, which are adopted in the UK as UK-adopted international accounting standards. However, application of this guidance does not form part of mandatory requirements and it is ultimately for companies and auditors to decide whether to use the examples. Any FRC engagement with companies and their auditors will be through either reviews of annual reports, or reviews of audits, undertaken as part of its Supervision work.