Accounting for cap and trade transactions under IFRS
Published on:
Sep 20, 2017
Learn about several methods for accounting for cap and trade transactions under IFRS. You will also receive an overview of cap and trade systems, and the Pan Canadian Framework on Clean Growth and Climate Change.
Explore the accounting implications of carbon pricing plans, specifically cap and trade systems, aimed at reducing emissions of greenhouse gases.
This paper covers:
- different approaches to accounting for transactions created by a cap and trade system under existing International Financial Reporting Standards (IFRS)
- illustrative examples and an understanding of accounting approaches used by Canadian public companies
- the history of the International Accounting Standards Board (IASB) involvement with this topic, including an overview of IFRIC 3 Emission Rights, which was subsequently withdrawn in June 2005
- an overview of the basics of cap and trade systems, as well as the Pan Canadian Framework on Clean Growth and Climate Change