Unexpected expenditures and accounting adjustments – like those arising from environmental obligations – can dramatically impact capital budgeting and future earnings. Companies have found that practices vary widely across sectors and both engineering and accounting expertise are critical in assessing environmental obligations.
Observations from the front lines provides PwC's insight on current economic issues, our perspective regarding the business impacts, and actions we have seen companies taking to effectively address those issues.
Evaluating environmental liabilities and their impacts on future earnings
Companies with environmental exposures or are subject to them as part of a deal, are often unaware of the qualitative and quantitative efforts needed to support the appropriate assessment of these obligations as well as quantifying future economic impacts. Enhancing the quality of financial reporting, audit readiness, liability valuations, internal controls as well as deal negotiations will allow management to make more informed decisions about the business while proactively managing their company’s exposures.
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