imported>Doug Williamson |
imported>Doug Williamson |
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| (BS).
| | ''Green finance.'' |
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| | The Climate Bonds Standard aims to support the growth of green debt capital markets by: |
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| == What is a balance sheet? ==
| | *Providing assurance for investors about the environmental integrity of climate bonds |
| | *Providing governments with an easy-to-use tool to preference qualifying investments |
| | *Fostering growth for investor demand in climate-related investment opportunities. |
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| One of the primary statements of a reporting entity's financial accounts.
| | The Climate Bond Standard is published by the Climate Bonds Initiative. |
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| Also known as the Statement of financial position.
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| The balance sheet lists the assets, liabilities and shareholders’ funds at the balance sheet date.
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| Under the 'double entry' accounting convention, assets are Debits (DR) and liabilities and shareholders' funds are Credits (CR).
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| The standard UK balance sheet presentation for external reporting is Net Assets = Shareholders' Funds.
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| The Net assets part of the balance sheet is sometimes called the 'top half'.
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| The Shareholders' funds part being the 'bottom half'.
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| For example in summary:
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| TOP HALF:
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| Assets 100 DR
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| - Liabilities (20) CR
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| = Net assets 80 DR
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| BOTTOM HALF:
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| Shareholders’ funds 80 CR
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| (Total shareholders' funds being appropriately detailed in turn into share capital and reserves, as well as the individual assets and liabilities being appropriately listed in fuller detail.)
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| The balance sheet equation in summary using the convention above is 80 = 80.
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| == Alternative presentations of balance sheets ==
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| There are many other ways to present this information in other balance sheet formats.
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| Alternative balance sheet conventions maintain the balanced/double-entry principle, but may show for example:
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| Total Assets = Total Liabilities + Shareholders' Funds.
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| Presented on this alternative (assets = liabilities) basis, using the same summary figures:
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| TOP HALF:
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| Total assets 100 DR
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| BOTTOM HALF:
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| Total liabilities 20 CR
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| + Shareholders’ funds 80 CR
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| = Total liabilities & shareholders’ funds 100 CR
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| The same balance sheet information has now been presented as 100 = 100, using the alternative convention.
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| The Total liabilities of 20 CR are now presented in the bottom half of the balance sheet (rather than in the top half as before). | |
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| The choice of presentation will depend on the purposes for which the balance sheet information is required, together with any rules or conventions applying to the entity's external reporting.
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| == See also == | | == See also == |
| * [[Assets]] | | * [[Carbon footprint]] |
| * [[Balance sheet exposure]] | | * [[Carbon-neutral]] |
| * [[Cashflow statement]]
| | * [[Climate Bonds Initiative]] |
| * [[Credit balance]]
| | * [[ESG investment]] |
| * [[Current/non-current method]]
| | * [[Fixed income]] |
| * [[Debit balance]]
| | * [[Green bond]] |
| * [[Double entry]] | | * [[Green Bond Principles]] |
| * [[Event after the balance sheet date]] | | * [[Green finance]] |
| * [[Financial statements]] | | * [[Greenwash]] |
| * [[Income statement]] | | * [[IPCC]] |
| * [[Liabilities]] | | * [[Retail bond]] |
| * [[Off balance sheet]] | | * [[Sustainability bond]] |
| * [[Off-balance sheet finance]]
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| * [[Post balance sheet event]] | |
| * [[Profit and Loss account]]
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| * [[Share capital]]
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| * [[Shareholders’ funds]] | |
| * [[Short term]] | |
| * [[Statement of financial position]] | |
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| ==Other links==
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| [http://www.treasurers.org/node/5176 Is your balance sheet sound? The Treasurer, 2009]
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| [[Category:Accounting,_tax_and_regulation]] | | [[Category:Financial_products_and_markets]] |