News from the AGN EMEA Accounting, Auditing & Education Committee (AAEC)
In previous newsletters, Carsten Ernst – AGN’s Expert in financial (IFRS) and sustainability (ESRS and GRI) reporting, explained the EU Taxonomy Regulation, Taxonomy-Eligible Activities, and Taxonomy-Aligned Activities. This month, he addresses Taxonomy Quotas, including turnover, capital expenditures and operating expenses.
Turnover
- “taxonomy-aligned turnover associated with environmentally sustainable economic activities”.
- The proportion of the turnover generated with products or services associated with taxonomy-compliant economic activities (in short: “sustainability-related turnover”).
- Taxonomy-compliant revenues
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- Total revenues according to IFRS or HGB
- Relevant is the total sales revenues according to the respective accounting law; according to the Taxonomy Regulation, there are no changes concerning the determination of sales revenues.
- The accrual questions regarding sales revenues (especially according to IFRS) also have a corresponding 1:1 effect on the taxonomy ratio in this respect.
Capital Expenditures
- Taxonomy-aligned Capital Expenditures (CapEx) associated with environmentally sustainable economic activities.
- Proportion of capital expenditures related to assets or processes that are associated with taxonomy-compliant economic activities (in short, “sustainability-related capital expenditures (CapEx)”).
Taxonomy-compliant CapEx
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Total CapEx according to IFRS or HGB
- CapEx = Capital expenditure = Additions to property, plant and equipment and intangible assets according to the respective accounting law applied.
- CapExPlan = Expansion of taxonomy-compliant economic activities or conversion of taxonomy-compliant economic activities into taxonomy-compliant economic activities within a predefined period.
Operating Expenses
- Taxonomy-aligned Operating Expenses (OpEx) associated with environmentally sustainable economic activities.
- The portion of operating expenses related to assets or processes associated with taxonomy-aligned economic activities (in short, “sustainability-related operating expenses (OpEx)”).
Taxonomy-compliant OpEx
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Total OpEx according to definition of Taxonomy Regulation
- OpEx or “operating expenses” are defined much more narrowly than “operating expenses” according to HGB or IFRS!
- Operating expenses in the sense of the Taxonomy Regulation = In particular, maintenance expenses for tangible assets (building renovation measures, maintenance, repair), short-term leasing and non-capitalised research and development costs.
Should you ever lose track of the big picture, my colleagues and I from the AGN EMEA Accounting, Auditing & Education Committee (AAEC) will be happy to help and guide you safely through the IFRS and CSR jungle. As a member of AGN International, you can use the AGN AAEC Helpline at any time or contact me by email at carsten.ernst@wirtschaftstreuhand.de or by mobile phone at +49 173 8710322.
Happy accounting and stay sustainable,
Carsten
 Carsten Ernst Managing Partner Wirtschafts Treuhand Group Stuttgart, Germany | – Expert in financial (IFRS) and sustainability (ESRS and GRI) reporting – Audit of financial and sustainability reports in accordance with ISAs – Member of the following AGN bodies: – EMEA Board of Directors (Chairman) – EMEA AAEC Accounting, Auditing and Education Committee (Member) |
