Accounting News
IFRS S2 Climate-related Disclosures
The objective of IFRS S2 is to require an entity to disclose information about its climate-related risks and opportunities that is useful to users of financial statements in making decisions about providing resources to the entity.
IFRS S2 is structured around four pillars: governance, strategy, risk management, and metrics and targets.
Governance enables understanding the processes, controls, and procedures an entity uses to oversee, manage, and monitor climate-related risks and opportunities.
The entity's strategy for managing climate-related risks and opportunities should also be disclosed.
Risk management allows an entity to understand its processes for identifying, assessing, prioritizing, and monitoring climate-related risks and opportunities, including how those processes are integrated and inform the entity's overall risk process.
The metrics and objectives correspond to climate-related key performance indicators and objectives, such as greenhouse gas emissions.
Accounting Inquiries
Right-of-use asset depreciation method
The depreciation method for the right-of-use asset used will reflect the pattern in which the future economic benefits of the asset are expected to be consumed by the entity.
Various depreciation methods can be used to systematically distribute the depreciable amount of an asset over its useful life.
Among these are the straight-line method, the units-of-production method, and the declining-balance depreciation method.
An entity must use the straight-line method when the asset's useful life is affected primarily by the passage of time and not by the use of the asset.
The production unit method should be used when the asset's useful life is primarily affected by its intensity of use and not by the passage of time.
The declining balance depreciation method should be used when the asset has higher productivity at the beginning of its useful life.
Spanish 
English