Financial Statements

Before you sign off on your 2025 financial statements, ask yourself one critical question:

Would they still stand up if your assumptions were challenged tomorrow?

Year-end reporting is no longer a routine close.

For 31 December 2025, financial statements are being tested by uncertainty, judgment, and transparency more than ever before.

What should clients focus on this year-end?

1️⃣ Uncertainty must be visible

Geopolitical risks, tariffs, climate exposure, and market volatility don’t belong only in narrative sections.

They must be reflected directly in estimates, assumptions, and disclosures.

2️⃣ Consistency is under scrutiny

Financial statements, sustainability reporting, and public communications must tell one coherent story.

Where assumptions differ, clear and explicit explanations are expected.

3️⃣ Hyperinflation requires active judgment

Inflation risks are evolving rapidly.

Continuous monitoring under IAS 29 is critical to avoid late or incorrect conclusions.

4️⃣ Disclosure quality matters as much as the numbers

Stand-back reviews under IAS 1 and IAS 8 are essential:

✔️ Are significant judgments clearly explained?

✔️ Are key uncertainties transparent?

✔️ Has immaterial clutter been removed?

5️⃣ Future standards matter today

IFRS 18, IFRS 19, and key amendments may apply later, but IAS 8 requires disclosure now of their expected impact, even if only qualitative.

The audit insight

High-quality financial reporting in 2025 is no longer about compliance alone.

It’s about defensible judgments, connected disclosures, and credibility under challenge.

At Kozman & Co. | SBC Global, our audit focus is on helping clients produce financial statements that inform decisions, withstand scrutiny, and build trust, not just meet year-end deadlines.