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Published date: 26 November 2024

Cash flow projections - The impact of climate-related matters on impairment testing of non-current assets

Companies typically use the discounted cash flow (DCF) technique to calculate the recoverable amounts of assets (or cash-generating units (CGUs)).

Climate-related risks and opportunities may significantly affect expectations of a company’s future cash flows in many ways – its revenues, operating costs (opex) and capital expenditure (capex).

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