The Research On The Accounting Recognition And Measurement Of Chinese Carbon Emissions Rights

With the large emissions of greenhouse gases such as carbon dioxide, global climate warming becomes more and more serious during the 21 st century. At present, the greenhouse gas emission reduction by carbon emissions trading becomes one of effective policy in resolve the world climate warming and realize sustainable development. Our country formally announced as early as in 2009, to 2020 unit of gross domestic production(GDP) of carbon dioxide emissions will reduce to 2005 level’s 40%-50%. Therefore, our country actively promote clean development projects, and implement pilot emissions trading in seven provinces and cities. The national carbon emissions trading market is expected to establish in2017, which will promote the new development of the theory of accounting in carbon emissions rights.At present, China has not yet promulgated accounting standards or accounting system about carbon emissions rights, so the research of this paper can not only provide a basis for development of relevant accounting standards or system, but also provide support for our country to actively promote carbon emissions trading.In order to guarantee the deep going of accounting research, this paper use standard research method and summarized method to research difficulties on accounting recognition and measurement of chinese carbon emissions rights, and form this paper’s research idea(“Ask a question- analysis of the problem- to solve the problem”). Firstly, this paper sort out opinions of domestic and foreign research institutions and scholars, and summarize the four main differences. Then, response to the four main differences, this paper analysis theoretical reasons for supporting various viewpoints, and proposed four inspiration for accounting research of carbon emissions accounting rights in China. Finally, combined with inspiration, this paper analysis the four main differences in China, summarize the conclusions, form the relevant accounting treatment recommendations, and analysis the impact of the proposed accounting treatment for business. Through in-depth analysis, this paper form conclusions, which may have following innovations:1. The difference of carbon emissions is recognized as assets. This paper argues that based on the total amount of allowances under control and trading mechanism, China’s carbon emissions conform to the asset confirmation standard, should be recognized as an asset. Based on the benchmarking and credit mechanism under the project, considering the enterprise is unable to control carbon emissions rights, carbon emissions rights should not be recognized as an asset.2. The difference of carbon emission rights should be confirmed as what kind of assets. Based on the essential attribute of carbon emissions and related trading mechanism(Shenzhen carbon emissions trading pilot case), this paper argues that based on the total amount of allowances under control and trading mechanism, carbon emissions rights should be recognized as an intangible asset.3. The difference of carbon emission rights should choose what kind of measurement attributes. According to the “cost – benefit” principle and fully reflect the economic substance of the claim, this paper argues that based on the total amount of allowances under control and trading mechanism, the enterprise’s free carbon emissions rights should choose fair value as measurement because this paper think it is reasonable. If the enterprise can more easily obtain reasonable purchase cost, the enterprise’s rechargeable carbon emissions rights should choose historical cost as the accounting measurement.4. The difference of the enterprise recognize a debt when producing actual emissions. This paper argues that based on the benchmarking and credit mechanism under the project, the enterprise doesn’t assumes obligation to provide mandatory cuts, so doesn’t recognize a debt. But based on the total amount of allowances under control and trading mechanism, if the enterprise recognize a debt when producing actual emissions, assets and debt will not match in measurement. So this paper argues that the enterprise recognize a debt when obtaining carbon emissions rights.In this paper, the research on the accounting recognition and measurement of Chinese carbon emissions Rights has the following two disadvantages: First, when researching the difference of carbon emission rights should choose what kind of measurement attributes, the analysis method is qualitative, so the judgment is subjective. If writer could obtain reliable data in the future, this paper should examine the reasonableness of the conclusions through empirical research. Secondly, when researching the difference of the enterprise recognize a debt when producing actual emissions, this paper argues that the enterprise recognize a debt when obtaining carbon emissions rights. But considering the debt should reflect delivered carbon emissions rights which have the same number with that when producing actual emissions, and There is a mismatch on initial recognition of debt and actual emissions, so this article recommends that based on the total amount of allowances under control and trading mechanism, for free carbon emissions rights, if the enterprises can reasonably predict actual emissions, they should adjust initial debt according to the market price and the predicted results, but this accounting treatment is related to estimation of enterprises, so the practical operation is more difficult.