Balance sheet and Climate Bonds Standard: Difference between pages

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''Green finance.''


The Climate Bonds Standard aims to support the growth of green debt capital markets by:


== 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.




One of the primary statements of a reporting entity's financial accounts.
The Climate Bond Standard is published by the Climate Bonds Initiative.


Also known as the Statement of financial position.
The balance sheet lists the assets, liabilities and shareholders’ funds at the balance sheet date.
Under the 'double entry' accounting convention, assets are Debits (DR) and liabilities and shareholders' funds are Credits (CR).
The standard UK balance sheet presentation for external reporting is Net Assets = Shareholders' Funds.
The Net assets part of the balance sheet is sometimes called the 'top half'.
The Shareholders' funds part being the 'bottom half'.
For example in summary:
TOP HALF:
Assets 100  DR
- Liabilities (20) CR
= Net assets   80  DR
BOTTOM HALF:
Shareholders’ funds 80  CR
(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.)
The balance sheet equation in summary using the convention above is 80 = 80.
== Alternative presentations of balance sheets ==
There are many other ways to present this information in other balance sheet formats.
Alternative balance sheet conventions maintain the balanced/double-entry principle, but may show for example:
Total Assets = Total Liabilities + Shareholders' Funds.
Presented on this alternative (assets = liabilities) basis, using the same summary figures:
TOP HALF:
Total assets   100 DR
BOTTOM HALF:
Total liabilities   20 CR
+ Shareholders’ funds     80 CR
= Total liabilities & shareholders’ funds 100 CR
The same balance sheet information has now been presented as 100 = 100, using the alternative convention.
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).
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.


== See also ==
== See also ==
* [[Assets]]
* [[Carbon footprint]]
* [[Balance sheet exposure]]
* [[Carbon-neutral]]
* [[Cashflow statement]]
* [[Climate bond]]
* [[Credit balance]]
* [[Climate Bonds Initiative]]
* [[Current/non-current method]]
* [[Climate Bonds Standard Board]]
* [[Debit balance]]
* [[Climate debt instrument]]
* [[Double entry]]
* [[Climate loan]]
* [[Event after the balance sheet date]]
* [[ESG investment]]
* [[Financial statements]]
* [[Fixed income]]
* [[Income statement]]
* [[Green bond]]
* [[Liabilities]]
* [[Green Bond Principles]]
* [[Off balance sheet]]
* [[Green finance]]
* [[Off-balance sheet finance]]
* [[Greenwash]]
* [[Post balance sheet event]]
* [[International Capital Market Association]] (ICMA)
* [[Profit and Loss account]]
*[[Intergovernmental Panel on Climate Change]] (IPCC)
* [[Share capital]]
* [[Retail bond]]
* [[Shareholders’ funds]]
* [[Sustainability bond]]
* [[Short term]]
* [[Statement of financial position]]
* [[CertICM]]




===Other links===
==External link==
[http://www.treasurers.org/node/5176 Is your balance sheet sound? The Treasurer, 2009]
*[https://www.climatebonds.net/files/files/climate-bonds-standard-v3-20191210.pdf Climate Bonds Standard]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Financial_products_and_markets]]

Revision as of 15:44, 24 June 2022

Green finance.

The Climate Bonds Standard aims to support the growth of green debt capital markets by:

  • 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.


The Climate Bond Standard is published by the Climate Bonds Initiative.


See also


External link

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