Use-of-proceeds provision and Useful financial information: Difference between pages

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''Capital markets - sustainability - loans.''
''Financial reporting.''


A provision in a loan agreement relating to the use of the proceeds of the borrowing, especially in relation to green and sustainable projects.
Under the IFRS Conceptual Framework it is fundamental that financial information:


*Is '''relevant'''; and
*'''Faithfully represents''' the substance of what it is supposed to be representing.


:<span style="color:#4B0082">'''''ESG factors are influencing borrowing organisations of all sectors and sizes'''''</span>


:"Gustavo Brianza, MD of ESG Advisory at NatWest, explained that most banks are waking up to the opportunities: 'Many treasurers may feel they’re not looking to access finance on a scale that brings this up, but most banks are offering sustainable and green loans.
When both relevance and faithful representation are achieved, then the following will further enhance the usefulness of the financial information:


:So that might involve a use-of-proceeds provision, which includes green projects, and private placements can also be accessed, so I don’t see the size of the business or the deal as being a barrier to adopting a sustainable finance strategy.'”
*Comparability
 
*Verifiability
:''The Treasurer online - 13 June 2022.''
*Timeliness
*Understandability




== See also ==
== See also ==
* [[Capital market]]
* [[Conceptual framework]]
* [[Climate Transition Finance Handbook]]
* [[Entity]]
* [[ESG]]
* [[Faithful representation]]
* [[Green bond]]
* [[Financial reporting]]
* [[Green Bond Principles]]
* [[International Financial Reporting Standards]] (IFRS)
* [[Green Loan Principles]]
* [[Relevance]]
* [[International capital market]]
* [[Issuer]]
* [[Loan Market Association]]
* [[MD]]
* [[Paris Agreement]]
* [[Provision]]
* [[Sustainability]]
* [[Sustainability bond]]
* [[Use of Proceeds instrument]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Ethics]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Revision as of 11:46, 17 February 2019

Financial reporting.

Under the IFRS Conceptual Framework it is fundamental that financial information:

  • Is relevant; and
  • Faithfully represents the substance of what it is supposed to be representing.


When both relevance and faithful representation are achieved, then the following will further enhance the usefulness of the financial information:

  • Comparability
  • Verifiability
  • Timeliness
  • Understandability


See also

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