Recognition of Provisions and Constructive Obligations

Does a company need to record a balance sheet liability for the costs associated with its net zero commitments?
In this month’s episode, Laura Kennedy is joined by Karsten Ganssauge and Scott Bandura for a special edition of our IFRIC Update, focusing on accounting implications of net zero commitments, as well as other climate-related matters.

Guidance referred to in this episode:
PwC 2023 Illustrative Consolidated Financial Statements (Appendix E: Impact of climate change on financial statements)
PwC In brief: ESMA’s report on disclosures of climate-related matters in the financial statements
PwC In depths:
Impact of ESG matters on IFRS financial statements
IFRS Financial reporting considerations for entities participating in the voluntary carbon market
Accounting for green/renewable power purchase agreements