Category: The ESG Tickler

Episode 63 discusses the representation of environmental benefits in capital planning. Valuing all environmental benefits is an important and careful measure, whether in a report or a pitch for capital spending to investors.

Benefits, undoubtedly, are challenging to define, let alone cost. Capital spending is a strategic, long-term consideration for any business. The investment is aimed at delivering favorable financial outcomes for the shareholders, while also minimizing the environmental impact.

Environmental items are many. Timber is used in many forms, from paper to construction. Pollinators have many uses, from food production to peaceful downtime zones. Forests and gardens generate chemicals with good and not-so-good outcomes depending on their mix. Wetlands, settling ponds, and waterfalls steer floods, habitat, food, and recreation for all. Water and air reticulation are monitorable for quality, and purchased inputs are assessed for greenhouse gas estimates.

Costing is substantiated with known historic data and a rigorous, scientific approach to mathematical calculations. The capital asset encompasses costs from various sources, to maintain the attractiveness of the financial investment. Capital planning is a multifaceted process.

Are you enjoying our cartoons? Save time and grab some cheeky characters for your updates and newsletters here from The Masked Comic.

.

We hope you’re enjoying our The ESG Tickler jottings, just a note though. The information provided here is intended for general informational and educational purposes only. While we aim for accuracy, we can’t guarantee that this content will apply to your specific situation—everyone’s circumstances are unique.

The ESG Tickler is not a substitute for personalized advice from a qualified accountant, tax advisor, or any other professional. If you have questions specific to your individual circumstances, we strongly recommend consulting a professional for tailored advice.

Episode 61 discusses two capital investment outcomes used in an ESG report. Not-for-profits have several duty-of-care challenges, including using surplus funds balanced with the need to attract continual investment.

Fauna interaction with human expansion generally needs a better sustainability outcome. Efforts to support and maintain healthy fauna populations are a consideration. Yet the existence of the fauna also creates sales opportunities for human activity.

Accounting for capital investment and ESG reporting covers many eventualities for the team.

Are you enjoying our cartoons? Save time and grab some cheeky characters for your updates and newsletters here from The Masked Comic.

We hope you’re enjoying our The ESG Tickler jottings, just a note though. The information provided here is intended for general informational and educational purposes only. While we aim for accuracy, we can’t guarantee that this content will apply to your specific situation—everyone’s circumstances are unique.

The ESG Tickler is not a substitute for personalized advice from a qualified accountant, tax advisor, or any other professional. If you have questions specific to your individual circumstances, we strongly recommend consulting a professional for tailored advice.

Episode 57 creates confusion in the team. Discussing carbon neutrality, survival needs, and climate change in our business context. Striving for carbon neutrality at times is at odds with the business’s purpose.

The team’s work activities are crucial in creating a safe environment for all. However, there are moments when these activities conflict with the basic need for survival, much like the climate’s own struggle.

Is climate change all about making a safe and comfortable living space for them without other inhabitants? Although there are no choices in how some items are built and accounted for, if a judgment is involved, so is explanation.

Are you enjoying our cartoons? Save time and grab some cheeky characters for your updates and newsletters here from The Masked Comic.

We hope you’re enjoying our The ESG Tickler jottings, just a note though. The information provided here is intended for general informational and educational purposes only. While we aim for accuracy, we can’t guarantee that this content will apply to your specific situation—everyone’s circumstances are unique.

The ESG Tickler is not a substitute for personalized advice from a qualified accountant, tax advisor, or any other professional. If you have questions specific to your individual circumstances, we strongly recommend consulting a professional for tailored advice.

Episode 54 begins with the accounting changes the team must introduce into the financial statement reporting from 1 January 2024.

Classifying liabilities affects clients through their reporting to the government, investors and credit lenders. In tight times, the ability to defer finance affects many ratios used to supply credit or assess business worth.

Explaining items is a necessity in episode 54. The explanation must comply with technical accounting rules and non-technical reporting. Accounting is the language of business and one element of a whole of business story on its financial condition and achievements. The achievements cover the businesses footprint in the environment, social activity and how it is governed.

This story helps people from all walks of life to invest, purchase or sell to the business.

Are you enjoying our cartoons? Save time and grab some cheeky characters for your updates and newsletters here from The Masked Comic.

We hope you’re enjoying our The ESG Tickler jottings, just a note though. The information provided here is intended for general informational and educational purposes only. While we aim for accuracy, we can’t guarantee that this content will apply to your specific situation—everyone’s circumstances are unique.

The ESG Tickler is not a substitute for personalized advice from a qualified accountant, tax advisor, or any other professional. If you have questions specific to your individual circumstances, we strongly recommend consulting a professional for tailored advice.

Episode 52 begins to look at financial statement changes and how their reports affect different users. Producing interim financial reporting improves the ability of others to understand a business’s sales capacity and its financial condition.

In tight times, the ability to produce an interim report can affect many ratios used to supply credit or assess a individuals or business worth.

Explaining items is a necessity. The explanation must comply with technical accounting rules and non-technical reporting. Standard paragraphs which use little effort taken from technical sources may not be fully understood across different situations.

The team has quite a quandary to resolve.

Are you enjoying our cartoons? Save time and grab some cheeky characters for your updates and newsletters here from The Masked Comic.

We hope you’re enjoying our The ESG Tickler jottings, just a note though. The information provided here is intended for general informational and educational purposes only. While we aim for accuracy, we can’t guarantee that this content will apply to your specific situation—everyone’s circumstances are unique.

The ESG Tickler is not a substitute for personalized advice from a qualified accountant, tax advisor, or any other professional. If you have questions specific to your individual circumstances, we strongly recommend consulting a professional for tailored advice.

In episode 49, the team is asked to review efficiency. A large capital investment is on the horizon to stay innovative, clear and as refreshed as the brand can be. With another solution that threatens to stop all activity if it breaks down again, with repairing it one more time.

Old things are they still useful? What is the point of staying innovative, fresh and up with the times? Is everything looping around from 50 years ago? These are some the questions this review needs to answer.

Efficiency in all activities—that is the team’s motto. The passionate pursuit of activity offers the business a choice of tools that are a unique blend of craftsmanship, nostalgia, and sheer joy to maintain and use. I love the dream.

When a piece of the business puzzle is overworked to collapse, should it be restored, regenerated, repurposed or recycled?

Every piece has parts, and whether the failure is attributed to failure by design or failure from wear, are all the other parts sacrificed for replacement?

In the decision-making process, some key discussion points are:

• Will the regeneration improve the environment? The regeneration may reduce the manufacturing of the replacement.
• When placed in situ, will the replacement provide aesthetics, charm, and curves? Will it fit, or will further modifications be needed?
• If further modifications are needed, will they produce a better outcome than before? Memories and emotions are evoked when the result is jarring.
• Why will the running costs be lower? Can the savings achieved by another method that produces the same outcome?
• How will the replacement offer a new, raw, unfiltered experience with electronic aids that create a visceral connection between the operator and the equipment?

Creating the perfect outcome is unique. It involves laborious effort, learning, preparation, and that touch of passion that only all of the operator’s senses can provide.

The outcome? To use an artisan’s hand.

Are you enjoying our cartoons? Save time and grab some cheeky characters for your updates and newsletters here from The Masked Comic.

We hope you’re enjoying our The ESG Tickler jottings, just a note though. The information provided here is intended for general informational and educational purposes only. While we aim for accuracy, we can’t guarantee that this content will apply to your specific situation—everyone’s circumstances are unique.

The ESG Tickler is not a substitute for personalized advice from a qualified accountant, tax advisor, or any other professional. If you have questions specific to your individual circumstances, we strongly recommend consulting a professional for tailored advice.

Episode 47, the next budget, is up for consideration. Planning for the budget commenced in January. To keep pace with legislative changes is omnipresent for salary packaging, business distribution of goods and services and sales.

Electric vehicles have changed standards for emissions. Emissions are challenging for petrol or diesel-based cars to reach and removing them from the FBT exemption was a political deal done in Australia to move away from all legacy fossil fuel technologies. In Europe, the Euro 6d rule reduces emissions further per kilometre.

In Australia, the luxury car tax from 1 July 2025 (more than $76,950) will apply unless the vehicle uses less than 3.5 litres for every 100 kilometres. Reporting and planning for costs across the business occur in budgets. Budgets prepared several months ahead provide a start for management and accountants to understand whole-of-business impact.

Are you enjoying our cartoons? Save time and grab some cheeky characters for your updates and newsletters here.

We hope you’re enjoying our The ESG Tickler jottings, just a note though. The information provided here is intended for general informational and educational purposes only. While we aim for accuracy, we can’t guarantee that this content will apply to your specific situation—everyone’s circumstances are unique.

The ESG Tickler is not a substitute for personalized advice from a qualified accountant, tax advisor, or any other professional. If you have questions specific to your individual circumstances, we strongly recommend consulting a professional for tailored advice.

Episode 45 begins with reporting awareness of all the associated expenses and tests in the FBT exemption for electric vehicles.

Delivering news of FBT and tax exemptions that are eligible within a business can empower many readers of financial reports. At the highest level, FBT and tax exemptions are available to employees where the employer offers the ability to salary sacrifice through a novated lease program. This common practice among workers in not-for-profit, large or government business areas can lead to significant savings. Small businesses should consult a financial or taxation advisor to assess the possibilities and make informed decisions.

As always, the information in Illum’s is general in nature and does not constitute financial advice. Speaking to your employer or taxation professional is crucial to understand if a novated lease will work for you. The conversation will ensure you make confident and secure financial decisions.

“From 1 July 2022, employers do not pay FBT on eligible electric vehicles and associated car expenses”, the ATO explains on its webpage “Fringe benefits tax – Electric cars exemption” (QC71132).

The aim is to provide a financial incentive for employees to purchase electric cars under a salary sacrifice novated lease, thereby saving money on the business FBT bill.

However, it’s essential to know that the scheme only applies to plug-in hybrid vehicles until 31 March 2025. After this date, low emission is not available. Being aware of this limitation prepares you for future changes.

Are you enjoying our cartoons? Save time and grab some cheeky characters for your updates and newsletters here.

We hope you’re enjoying our The ESG Tickler jottings, just a note though. The information provided here is intended for general informational and educational purposes only. While we aim for accuracy, we can’t guarantee that this content will apply to your specific situation—everyone’s circumstances are unique.

The ESG Tickler is not a substitute for personalized advice from a qualified accountant, tax advisor, or any other professional. If you have questions specific to your individual circumstances, we strongly recommend consulting a professional for tailored advice.

In episode 43, the FBT changes also include tests for purchase date and the right car engine to remain eligible for the exemption. Selection and resale are getting complicated.

FBT electric vehicle exemption has two tests. The exemption applies to a car benefit only if the earliest purchase date time when a person both held and used the car was at or after the start of 1 July 2022.

Source: para. 1:16 in the EM to the Treasury Laws Amendment (Electric Car Discount) Bill 2022 has an example of held and used after 1 July 2022.

If Zena acquires an electric car on 1 April 2022 and makes that car available for the private use of her employee Jack, to provide car fringe benefits from that date for four years. The benefits provided from 1 July 2022 will not be exempt. Additionally, if Zena were to instead sell the car to another employer after Jack had used it for two years (i.e. on 1 April 2024) the benefit that employer may provide to its employees for the use of the electric car will also not be exempt.

Also, electric vehicles and associated car expenses has a variation. A home charging station is not a car expense associated with providing a car fringe benefit for electric cars.

That home charging expense may need to be considered by the accountants as either a property fringe benefit or an expense payment fringe benefit. Other benefits of running the eligible car including benefits provided under a salary packaging arrangement are included in the exemption.

The ATO webpage ‘’Fringe benefits tax – Electric cars exemption ‘’ (QC71132) has more information.

Regeneration is our commitment.

Are you enjoying our cartoons? Save time and grab some cheeky characters for your updates and newsletters here.

We hope you’re enjoying our The ESG Tickler jottings, just a note though. The information provided here is intended for general informational and educational purposes only. While we aim for accuracy, we can’t guarantee that this content will apply to your specific situation—everyone’s circumstances are unique.

The ESG Tickler is not a substitute for personalized advice from a qualified accountant, tax advisor, or any other professional. If you have questions specific to your individual circumstances, we strongly recommend consulting a professional for tailored advice.

In episode 42, the team discuss business decisions and how best to manage poor inputs into major service. planning. Because within your business decision elements, every choice will produce results. What factor do you bring for the future?

Whether it is the one that delivers true value to your business is the one that looks at how far it reaches across your goals. That reach may need definitions for boundary placement.

Predicting business decisions in advance

Whether (pun intended) or not your decision for your sales or new business plan forecast is likely to contribute to you reaching your goals is a careful evaluation.

Accounting is shaped by the consideration of many different views. So, take the time to review the downsides meaningfully.

Being close to the action helps forecasts. Why? The most powerful models render themselves useless when they ignore the eyes on the ground.

Accounting helps value symptoms and provides a guide to your root cause plans. Because when you reach out to your accountants; they will often help you identify the root cause.

Your forecasts affect many budgets, resource allocations, timeframes, quality and customer satisfaction. So, communicating your thoughts with the decisions and the substance and reasoning value will bring everyone up to a consistent level of understanding.

Are you enjoying our cartoons? Save time and grab some cheeky characters or easy to use blank formats for your updates and newsletters here.

We hope you’re enjoying our The ESG Tickler jottings, just a note though. The information provided here is intended for general informational and educational purposes only. While we aim for accuracy, we can’t guarantee that this content will apply to your specific situation—everyone’s circumstances are unique.

The ESG Tickler is not a substitute for personalized advice from a qualified accountant, tax advisor, or any other professional. If you have questions specific to your individual circumstances, we strongly recommend consulting a professional for tailored advice.