Understanding new import tariffs and the related uncertainty
When new tariffs and counter-tariffs are announced and amended at short notice, it is not just the tariffs themselves that pose challenges for companies � it is also the pace of change and the resulting economic uncertainty. Assessing the impacts on interim or annual financial reporting may be complex.
A company cannot disregard import tariffs simply because they are announced after a reporting date � e.g. 31 March 2025. This is because some accounting standards require companies to consider expectations about the future for measurement and disclosure purposes.
In times of uncertainty, it is critical to think broadly about the impacts on your financial reporting. Reflect the measurement uncertainty at the reporting date based on the requirements in the relevant accounting standards, and tell a clear story.
Thinking broadly about the impacts
Companies need to determine how the new import tariffs � and the related uncertainty � may directly or indirectly impact their operations, their strategy and their ability to continue as a going concern. They also need to consider how to reflect this uncertainty when making judgements and assumptions about the recognition and measurement of assets and liabilities � and provide the appropriate disclosures.
Reflecting the impacts and telling a clear story in your financial reporting
Use this quick reference card and linked resources to help you assess the key financial reporting impacts.
Your key actions
- Determine the financial reporting areas impacted by import tariffs and the measurement and disclosure requirements that apply.
- Provide clear and meaningful disclosures about judgements and assumptions made.
- Consider the impact of import tariffs on the going concern assessment. Provide clear and robust disclosures, including disclosures about uncertainties identified in the assessment, when relevant.
- Assess if additional disclosures are required to meet user needs � e.g. in condensed interim financial statements when changes in circumstances have reduced the relevance of significant disclosures in your last annual financial statements.
- Monitor the developments and effective dates of tariffs, including counter-tariffs.
- Ensure that the information you communicate in your financial statements and elsewhere � e.g. in your sustainability-related disclosures and management commentary � is connected and tells a clear story.
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