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      (This article was published on 26 November 2024 and updated on 26 November 2025)

      Investors and regulators demand clarity on climate-related matters1 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.

      1 Read our article to find out more about how climate-related risks and opportunities may impact a company’s strategy, financial reporting and sustainability reporting.

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