Greenhouse Gas Protocol (GHG Protocol)’s Post

GHG Protocol's Market-based Accounting Approaches Survey Draft Summary Report is now available.   Between November 2022 and March 2023, GHG Protocol invited interested stakeholders to provide feedback on market-based accounting approaches and received over 340 survey responses. The Draft Summary Report provides a detailed overview of this feedback.   To ensure that GHG Protocol is accurately representing survey feedback, we are holding a review period to invite comments only from individuals/organizations who completed the market-based accounting approaches survey who believe their feedback was either not adequately reflected or misrepresented.     Read the report and learn how you can provide feedback: https://bit.ly/3vNqMEP

🚀 #GHGProtocol has just launched the highly anticipated summary of Market-based Accounting Approaches survey feedback. Unsurprisingly, stakeholder views diverge widely. 🙋🏻♂️ A personal takeaway is that we need to do a much better job explaining the difference between inventory accounting and project or intervention accounting, coupled with the role of target-setting and disclosure initiatives in determining what "counts". 🤔 Rightly or wrongly, there's a big push to put 'everything' into the Scopes (i.e., the inventory) since many proponents of market-based accounting approaches think that's the only way they will be recognized. But this can blend two very different accounting systems, the implications of which need to be thought through very carefully. 🏫 For those new to this topic, the background section of the Draft Summary Report provides some helpful context that's worth reading even if you don't get into the weeds. 💡If there's anything in the draft report that you found particularly helpful or insightful, please let me know!

A few days ago I shared the accounting profession's wish to offer leaders Strategic Management Accounting support (SMA)  … ‘the provision and analysis of management accounting data about a business and its competitors, for use in developing and monitoring business strategy’ ... and explained that this aspiration faces two big challenges. 1. that there's more to "strategy" than just the strategic plan, which places huge requirements on what SMA needs to offer, and 2. that the available strategy methods simply cannot meet those needs. It's taken some work, but I have put together an explanation of these issues, plus a fully justified solution for achieving what SMA needs. Friends tell me (thanks) that the result is too big for a single article, so I have split it into two parts: Part 1 explains: .. the full range of support that leaders need for their strategic management tasks, .. the requirements this places on accountants for the SMA support they offer, .. an example of a digital-twin, dynamic business model for a simple business that can fulfil those needs Get the part-1 paper at http://sdl.re/SMApaper1 Part 2 will show: .. why standard strategy methods and frameworks cannot achieve what SMA needs .. how the rigorous theory behind dynamic business models offers a reliable, practical process for building them - easily within reach of accounting professionals .. why those models are so powerful for meeting leaders' strategic management needs (Part 2 will end with FREE access to the working model, and FREE access to the short course on how to build that model.) If you think all this could be useful for any accountant friends, please do share this message and encourage them to get the paper. #strategicmanagement #managementaccounting #digitaltwin #businessmodels #businessstrategy

Charting New Paths: The Complete Guide to the Latest in Accounting & Finance 2024 https://lnkd.in/gxAFtfgX

Charting New Paths: The Complete Guide to the Latest in Accounting & Finance 2024

Charting New Paths: The Complete Guide to the Latest in Accounting & Finance 2024

Charting New Paths: The Complete Guide to the Latest in Accounting & Finance 2024

Charting New Paths: The Complete Guide to the Latest in Accounting & Finance 2024

Stay informed on the FASB’s latest accounting standards updates. Check out our blog for details on four key updates. #ASU #Accounting

Helicopter view of new IFRS 18 – Presentation and Disclosure in Financial Statements The Accounting Standards setter - International Accounting Standards Board (IASB) is set to issue a new standard, IFRS 18 in April 2024. The forthcoming IFRS Accounting Standard will set out the overall requirements for presentation and disclosures in the financial statements. IFRS 18 will have effective date of 1 January 2027 (earlier adoption is permitted). Let’s quickly have a general view of IFRS 18. The purpose of the new IFRS Accounting standard is to improve reporting of financial performance in 3 different ways, namely: -  To respond to investors’ demand for better information about companies’ financial performance; -  To improve how information is communicated in the financial statements; and -  To give investors a better basis for analysing and comparing companies’ performance. It is important to note that IFRS 18 will affect all stakeholders in the IFRS Accounting standards’ ecosystem. Let's briefly look at the new sets of requirements of IFRS 18. IFRS 18 will introduce 3 new sets of requirements. They are: 📍 Companies to introduce 2 new defined subtotals in statement of profit or loss to include “operating profit”. Investors, in the recent times, have expressed concerns about the difficulty in comparing financial performance across entities because companies’ profit or loss vary in content and structure. This requirement will help investors to have a consistent basis for comparing performance between companies.  📍 Secondly, companies will be required to disclose information about some non-GAAP measures in a single note to the financial statements. These disclosures are called management-defined performance measures (MPMs). The purpose of this is to help companies to complement information provided in the financial statements based on the new structure for the profit or loss. Essentially, we’ll be seeing companies disclosing specific information about performance measures, hence providing investors with greater transparency about those performance measures. 📍 The third new requirement is the enhanced guidance on grouping of information (aggregation and disaggregation) in the financial statements. The purpose of this requirement is to help ensure that investors are provided with material information to better inform their investment decisions. So, these 3 sets of requirements are mainly to provide adequate information for better decisions by increasing comparability, transparency and usefulness of information. I'll be sharing a bit more details about each of these 3 new sets of requirements shortly after Easter break. Thanks for reading. #Proflink