The second part of our article “From EBIT to SEBIT (Sustainable EBIT)” was published in the December issue of the renowned Journal of International Accounting (IRZ) (12/24, Volume 19). While the first part explained the fundamentals of Sustainable Performance Accounting (SPA), the second part focuses on the practical implementation of SPA, illustrated using the example of climate protection and its impact based on CO2 emissions. Both CO2 emissions (negative impact) and CO2 sequestration (positive impact) are explained using the three steps: recognition, disclosure, and measurement. Each step is justified based on generally accepted accounting principles (GAAP), and the corresponding journal entries are presented. The results of ESG accounting can be seen in the S-balance sheet (S = Sustainability).
Beyond the time-limited annual financial statements, we have developed an innovative balance sheet feature: The ESG capital item is centrally located on the balance sheet and functions as a sustainability record, aggregating and reporting all ESG-related matters over the years. This permanently documents the company's sustainability practices and allows them to be reviewed over time.The Journal of International Accounting (IRZ) is a renowned journal that focuses on current developments in international accounting and provides valuable insights for the financial and corporate world through in-depth analyses and practical articles. The publication of "From EBIT to SEBIT" as a featured topic in November 2024, and now the second part in the December issue, underscores the relevance of sustainability reporting. You can find the article here (registration required).
Foto: Celina Ehrnsperger, TH-Nürnberg
The second part of our article “From EBIT to SEBIT (Sustainable EBIT)” was published in the December issue of the renowned Journal of International Accounting (IRZ) (12/24, Volume 19). While the first part explained the fundamentals of Sustainable Performance Accounting (SPA), the second part focuses on the practical implementation of SPA, illustrated using the example of climate protection and its impact based on CO2 emissions. Both CO2 emissions (negative impact) and CO2 sequestration (positive impact) are explained using the three steps: recognition, disclosure, and measurement. Each step is justified based on generally accepted accounting principles (GAAP), and the corresponding journal entries are presented. The results of ESG accounting can be seen in the S-balance sheet (S = Sustainability).
Beyond the time-limited annual financial statements, we have developed an innovative balance sheet feature: The ESG capital item is centrally located on the balance sheet and functions as a sustainability record, aggregating and reporting all ESG-related matters over the years. This permanently documents the company's sustainability practices and allows them to be reviewed over time.The Journal of International Accounting (IRZ) is a renowned journal that focuses on current developments in international accounting and provides valuable insights for the financial and corporate world through in-depth analyses and practical articles. The publication of "From EBIT to SEBIT" as a featured topic in November 2024, and now the second part in the December issue, underscores the relevance of sustainability reporting. You can find the article here (registration required).
