Planetary Boundaries: Implications for Asset Impairment

19 Pages Posted: 18 Jan 2016

See all articles by Martina Linnenluecke

Martina Linnenluecke

University of Queensland - Business School

Jacqueline Birt

University of Queensland - Business School

John D. Lyon

The University of Melbourne, Department of Accounting and Business Information Systems

Baljit K. Sidhu

UNSW Australia Business School, School of Accounting

Date Written: December 2015

Abstract

Scientific findings support the existence of nine planetary boundaries which define a safe operating space for humanity and the conditions necessary to sustain human life. The declining state of the environment (4 of the 9 boundaries have been breached) creates significant risk factors for asset impairment. Risks result not only from environmental challenges and resulting resource constraints (e.g. limits to fossil fuel extraction and carbon constraints) but also changing technology landscapes and social expectations. This article is one of the first to discuss the implications of changes in planetary boundary conditions for asset impairment and recognising an impairment event and sets out an agenda for future research.

Keywords: Asset Impairment, Environmental Change, Planetary Boundaries, Risk, Resources Constraints, Safe Operating Space

Suggested Citation

Linnenluecke, Martina and Birt, Jacqueline and Lyon, John D. and Sidhu, Baljit K., Planetary Boundaries: Implications for Asset Impairment (December 2015). Accounting & Finance, Vol. 55, Issue 4, pp. 911-929, 2015, Available at SSRN: https://ssrn.com/abstract=2716430 or http://dx.doi.org/10.1111/acfi.12173

Martina Linnenluecke (Contact Author)

University of Queensland - Business School ( email )

Brisbane, Queensland 4072
Australia

Jacqueline Birt

University of Queensland - Business School ( email )

St Lucia
Australia

John D. Lyon

The University of Melbourne, Department of Accounting and Business Information Systems ( email )

Victoria
Melbourne, 3010
Australia

HOME PAGE: http://www.abis.unimelb.edu.au/who/staff/john_lyon.html

Baljit K. Sidhu

UNSW Australia Business School, School of Accounting ( email )

Sydney, NSW 2052
Australia

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