The Global Green New Deal and the Financial Statements

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Rao, Sunita
Washburn University. School of Business
Kaw Valley Bank
Issue Date
September 2019
Alternative Title
The Green New deal has suddenly been in public consciousness due to recently proposed legislation in the US congress. As far back as 2007 influential journalist Thomas Friedman used the phrase in his article, "The Power of Green", in the New York Times to describe the need for ending fossil fuel subsidies, taxing carbon dioxide emissions, and, creating incentives for wind and solar energy. The phrase was borrowed from President Franklin D. Roosevelt's "New Deal" after the Great Depression of 1929 and its main aim was to call attention to the intense negative impact of climate change on human health (Solomon and LaRocque 2019), access to clean water (Von Schwedler 2011), fuel (Guertler 2012) and harsh conditions that are faced by people all around the world (Labadie 2011, Sukhdev 2012). The purpose of this article is to explore the possible effects of the GND on the accounting profession. To do this, we will explore the impact on various parameters that are at the core of accounting. These include companies' financing activities, operating activities and investing activities. A study such as this might facilitate practitioners to anticipate possible changes and prepare themselves for the change.