Climate change has the ability to impact on traditional financial accounting in what way?

Question

Quizplus · Accepted Answer

Climate change can impact traditional financial accounting in multiple ways. It can affect the valuation of liabilities such as insurance payouts due to increased natural disasters. It can also impair assets such as real estate properties in coastal areas that are vulnerable to sea level rise. Furthermore, companies may have to disclose climate-related risks in their financial reports as part of their legal obligations and to provide transparency to stakeholders.

Climate Change Has the Ability to Impact on Traditional Financial