Artículo 3.14. PS 1 Paragraph 3.14

In this Practice Statement, ‘value’ refers to the value an entity creates for itself and hence for its investors and creditors. The term does not refer to the value an entity’s activities might create, preserve or erode for other parties (for example, customers, suppliers, employees or society at large), the economy or the natural environment. However, an entity’s ability to create value for itself—and hence to generate cash flows across all time horizons, including in the long term—is closely related to the value the entity’s activities create, preserve or erode for those other parties, the economy or the natural environment. Therefore, management commentary includes material information about the impacts of an entity’s activities on other parties, the economy and the natural environment if those impacts could affect the entity’s ability to create value for itself. Illustration If an entity’s business model depends on a natural resource—such as water—degradation or depletion of that resource, including resulting from the entity’s own activities, could adversely affect the entity’s ability to create value and generate cash flows. In contrast, regeneration and preservation of that resource, including resulting from the entity’s own activities, could positively affect the entity’s ability to create value and generate cash flows. Link Paragraph 8.6(c) requires management commentary to provide information that enables users to understand the environmental and social impacts of the entity’s activities if those impacts have affected or could affect the entity’s ability to create value and generate cash flows, including in the long term.