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Accounting Carbon Trading – Carbon Emission Reductions

4 September 2009 2,731 views 4 Comments

Hi
Does any one have any write up for accounting for carbon trading or contracts for Carbon emmission reductions.

Niranjan

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4 Comments »

  • admin (author) said:

    Message from Niranjan

    We have multiple scenarios which will start very soon.
    1) carbon trading
    2) creation of a JV to invest in projects for carbon emmission reductions contract.
    3) invest 100% in CER contracts. A few contracts have been signed and I can see some write up where I have to start recongising the asset once I have reasonable assurance of getting the CER next year as bulk of the expenses have been already incurred with almost negligible capex and most of the expenses have been charged off to p&l.

    Need to be on top of things before the volume of transaction surges. If there is any consolidated write in simple language that will be really helpful on recognising the asset , valuation and presentation as per IFRS.
    Thanks

    # 4 September 2009 at 9:12 am
  • admin (author) said:

    Message from Sybrandt

    Hi

    I would also be very interested in the same stuff please.

    Thanks

    # 4 September 2009 at 9:15 am
  • admin (author) said:

    Message from Deepak

    http://icai.org/resource_file/16248ed_cers.pdf

    http://www.ey.com/Publication/vwLUAssets/Accounting_emission_reductions/$FILE/Accounting_emission_reductions_July09.pdf

    # 4 September 2009 at 9:26 am
  • admin (author) said:

    Message from Vatsla

    The ICAI issued an ED on Guidance Note on Accounting for Self-generated Certified Emission Reductions (CERS) on 5th June 2009. You may wish to look at it for guidance.

    Regarding IFRS, there used to be IFRIC 3 Emission Rights which was withdrawn in June 2005 but that dealt more with cap and trade schemes. There is no other guidance available and the treatment is subject to interpretation. Under IFRS most entities generating CERS treat it as government grants under IAS 20 recognising it either as an inventory or an intangible asset depending upon the circumstances of the entity.

    # 4 September 2009 at 10:43 am

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