Research On Accounting Recognition And Treatment Of Carbon Emission Rights

Climate change is currently the focus of attention around the world. With thedevelopment of industrialization, the emissions of greenhouse gas have made the airtemperature rise sharply, which has a significant impact on the production and livingof the human beings. The international community has started discussions andcooperation on the issue of fighting climate change for a long time, hoping to controlthe emissions of greenhouse gas to mitigate climate change. With the United NationsFramework Convention on Climate Change and the Kyoto Protocol passed,international carbon emissions trade has gradually developed and has become themain pattern to control the emissions of greenhouse gas for main countries around theworld. Enterprise stakeholders have also begun to concern about the impact of carbonemissions trade on the business of the enterprise. As a result, Carbon emissions tradeaccounting formed. To meet the information needs of the enterprise stakeholders,enterprises are faced with the problem of how to properly conduct on the accountingrecognition and treatment of the carbon emissions trade.Although at present China has exceeded the United States to become the world’slargest emitter of carbon, the development of carbon emissions trade accounting isstill in its infancy and there are still no carbon emissions trade accounting standards.Especially the accounting recognition of carbon emission rights have not beenthoroughly studied, which causes our country’s carbon emissions trade having nounified accounting standards to follow and is not beneficial to the development ofChinese carbon emissions trade accounting. As a result, China is urgent to make someaccounting standards about carbon emissions trade. What’s more, in the process ofmaking accounting standards, only do China integrate with the internationalaccounting standards, and it will strengthen our accounting information comparability about carbon emissions trade and effectively promote the development of Chinesecarbon emissions trade accounting. In addition, China has not formed a perfect andactive carbon emissions trade market. It also has not established a carbon emissionstrade system based on the total and trade patterns, but mainly focuses on moredispersed CDM projects. Although China rapidly develops to be the world’s largestmarket of supplying the CDM projects, it is still at the low end of the carbon economyindustry chain and passively sells and lacks bargaining power. So the market prices ofcarbon quotas are low, which harms national and corporate interests. Consequently,learning from advanced international experience and actively exploring our country’scarbon emissions trade system based on the total amount and transaction mechanismshave important theoretical and practical significance. In view of this, by referring toexisting research, this paper attempts to study accounting recognition and accountingtreatment about carbon emissions trade in order to make accounting standards aboutcarbon emissions trade suitable for our country and effectively promote thedevelopment of our carbon emissions trade market.This paper discusses the background of carbon emissions trade accounting anddescribes its significance. It also discusses the relevant literature on accountingrecognition and treatment carbon emissions trade and then reviews the literature,which clearly involves the main content of the paper and at the same time points outthe innovative and theoretical value. Then from the definition of the carbon emissionrights, it further reveals the accounting essence of carbon emission rights, which laysthe theoretical foundation for the accounting recognition.Then this paper discussesthe theoretical results of the carbon emissions accounting recognition. The writerbelieves that carbon emission rights should be recognized as an intangible asset in thefinancial statements because they belong to the rights of an asset. In addition, thewriter presents a specific accounting recognition and treatment processes of carbonemissions trade based on quotas and projects under two trading mechanisms. Next,the paper studies the carbon emission rights accounting recognition and treatment ofJuHuaGuFen and provides reasonable suggestions. By drawing on foreign experience,this paper designs a carbon emissions accounting system for JuHuaGuFen. At last, it summarizes the whole article and raises the outlook for the future research based onthe defects of the paper.