Skip to main content

ESG and the financial statements

Defining Issues | March 2021

FASB staff educational paper highlights how environmental issues may affect the financial statements.

The FASB staff paper discusses the intersection of environmental, social and governance matters with the accounting standards, and highlights how environmental issues may affect the financial statements.

Applicability

  • All companies

Key Impacts:

The paper highlights the following as examples of how environmental matters might affect financial statements:

  • Presentation on a going concern basis
  • Disclosure of risks and uncertainties
  • Valuation of inventories
  • Impairment of nonfinancial assets
  • Useful lives and salvage values of long-lived assets
  • Loss (and gain) contingencies
  • Environmental obligations
  • Asset retirement obligations
  • Income taxes
  • Fair value measurement

Explore more

KPMG survey: Sustainability Reporting 2020

The KPMG Survey of Sustainability Reporting 2020

Read more

Sustainability reporting

KPMG guidance and articles for financial reporting professionals.

Read more

Reference Library

In-depth analysis, examples and insights to give you an advantage in understanding the requirements and implications of financial reporting issues.

Read more

Accounting Research Online

Access our accounting research website for additional resources for your financial reporting needs.

Access ARO

KPMG. Make the Difference.


Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. KPMG LLP does not provide legal services.

The information contained herein is not intended to be “written advice concerning one or more Federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

© 2026 KPMG LLP, a Delaware limited liability partnership, and its subsidiaries are part of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.
All fields with an asterisk (*) are required.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's . Privacy Statement

An error occurred.

Job seekers

Visit our careers section or search our jobs database.

Search now!

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Submit

Office locations

View locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Learn more

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Contact

Headline