Question to the Department for Business and Trade:

To ask His Majesty's Government what assessment they have made of British companies’ and auditors’ readiness to apply the 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, in their financial reporting this year; and what assessment they have made of the contingency plans that the Financial Reporting Council and other regulators have in place should those companies and auditors fail to apply the new guidance.

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.