Research On Accounting For Carbon Emission Rights

In recent years, as the development of social economy and science and technology, people have to face issues like global warming and social environmental degradation. To keep social order and the development of the human race, reducing carbon emissions becomes a more and more popular topic. To be the main body of economic development and carbon emissions, the companies have the responsibility to make contribution to protect our environment. Therefore, governments around the world and the environmental protection agency are in process of seeking the ways to curb environmental pollution. With the United Nations framework convention on climate change and the Kyoto protocol have been approved, and the conference about the global warming in Copenhagen display us the urgency of reducing carbon emissions. Carbon emissions trading as a new flexible and effective measure is proposed by managers.As the carbon emissions trading gradually expand and the carbon trading market continuous improve in our country, more and more units participate in the carbon emissions trading. Meanwhile companies will be faced with how to accounting the carbon emissions. However, there is no related accounting norm in our country at present. This makes the companies show some problems in such aspects as accounting recognition, measurement and disclosure of carbon emission rights. This article is to demonstrate the domestic and foreign academic circles about carbon emissions and its transaction accounting problems. In the meantime, it analyses carbon emissions rights and the types of trading characteristics and accounting recognition, measurement and related reports. Through the case analysis to further embody the accounting treatment about carbon emissions trading.The author believes that enterprises carbon emission rights are mainly gained through the government granted and purchase or auction. Because of the different way the rights acquired, people should be at fair value and the actual price paid when confirmed as intangible assets. For the recent sale in the hope of profit and buy carbon emission rights should be identified as trading financial assets. In follow-up measurement, the carbon emission rights issue should be confirmed as intangible assets in accordance with the actual emissions accounted for the proportion of the total emissions of amortization. In the final revaluation, the value-added part should be in capital reserves and the impairment part should be in non-operating expenses. Enterprise obtained free of carbon emission rights should be after the confirmed deferred income. And it also should be amortized according to certain way during measurement, recorded in the non-operating income. In the final selling of the carbon emissions, the difference between the actual amount received and the balance of carbon emissions will be accounted as non-operating income. The identified financial assets part monthly settlement date to confirm the changes in fair value gains and losses. In the disposal of carbon, the fair value and the difference between the books should be recognized as investment income, then adjust the changes in fair value gains and losses. Carbon emissions disclosure primary goal is to provide useful information to users. Not only within the financial statements to reveal the result of the financial processing, but also reflect the information that is unable to be showed in the off-balance-sheet notation.