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

Investors and regulators demand clarity on climate-related matters in financial reporting, including the impact they have on the judgements and estimates a company makes in its impairment testing. They expect a company to provide robust disclosures that help them to understand whether and how climate-related matters are reflected in the recoverable amount.

Connecting the assumptions used in the impairment test and the information provided in the front part of the annual report is key. Use our guide to learn more about impairment, disclosures and connectivity.

Impairment testing on non-current assets diagram

Climate-related matters are high on the agenda of stakeholders. They can have a significant impact on impairment testing and it is critical for companies to be clear about them in their financial statements. Our guide is here to help answer your practical questions and drive clarity in your financial statements.

Volker Specht

Partner, Audit, DPP

KPMG in Germany

Your questions answered

To help you reflect the impact of climate-related matters on your impairment testing of non-current assets, we answer your questions on the following key issues.

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