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They're constructed to answer specific questions relevant to one or more of the financial statements. By plugging the specific transaction into the balance sheet, treasurers can see how it would affect the rest of the company and determine whether the benefits outweigh the potential risks/drawbacks.
According to the World Economic Forum, globally reported economic losses attributed to climate and water extremes reached $1.48 C by 2100, the world will suffer less than an 8% loss of GDP to disasters and climate change. C by then, causing losses estimated at 24% of the global economy. increase over the previous decade.
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