Please enable JavaScript.
Coggle requires JavaScript to display documents.
Financial reporting considerations, image, image, image, image, image,…
Financial reporting considerations
IAS 1 Presentation of
Financial Statements
Other companies in a similar industry have recognised significant write-downs and investors have publicly demanded such information, a company may need to disclose whether climate‑related risks have affected the carrying amount of the assets recognised
in the financial statements.
IAS 1 requires disclosure in the notes of information that is not presented elsewhere in the financial statements but is relevant to an understanding of them. Information will be relevant if it could reasonably be expected to influence decisions made by investors.
IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets
the estimated useful lives of assets, and therefore the amount of depreciation or amortisation recognised each year.
whether some expenses relate to items that satisfy the definition of an asset and can be recognised (for example, as property, plant and equipment or an intangible asset)
IFRS 9 Financial Instruments and / IFRS 7 Financial
Instruments: Disclosures
When banks invest in projects or lend money to businesses affected by climate‑related risks, they will need to consider how the exposure to climate‑related risk affects the expected credit losses of these loans and investments.
Investment funds and insurance companies could also hold investments in industries that may be affected by climate-related risk; and they would therefore be exposed to price risk in relation to these investments.
IAS 36 Impairment of Assets
The carrying amount of assets such as property, plant and equipment, assets recognised in relation to mineral resources, intangible assets and goodwill couldbe overstated if the impairment calculations do not account for the effect of climate-related risks.
IAS 36
requires disclosure of the key assumptions on which cash flow projections have been based and management’s approach to determining the value assigned to these key assumptions, in particular, in relation to goodwill or indefinite-life intangible assets.
IFRS 13 Fair Value Measurement
IFRS 13 requires companies to disclose key assumptions used where assets are recognised at fair value. Fair value measurements may incorporate a number of possible scenarios.
Companies in sectors particularly affected by climate-related risks would need to consider disclosing their assumptions regarding such risks, even if they cannot quantify any effects on the financial statements.
IAS 37 Provisions, Contingent Liabilities and Contingent Assets
Companies are required to provide a brief description of the nature of any contingent liability, and where practicable, an estimate of its financial effect and an indication of the uncertainties relating to the outflow of resources for settling the obligation.
Climate-related risks and uncertainties may also affect the best estimate of a provision. Companies must disclose their major assumptions about future events, which may need to include an explanation of how climate-related risks have been factored into the best estimate of the provision.
ALEXIS GALINDO VARELA LCN-N5
