Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: form 3cd :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: VAT Audit :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: articles on VAT and GST in India :: empanelment :: TDS
 CPE Events 19th March - 24th March 2018
 Advertisement for Invitining Consultants to Work With ICAI Accounting Research Foundation on Research Projects (in Chennai)
 Question Bank on IBBI Limited Insolvency Examination
 Here's how you can fix it Made a mistake while filing tax returns?
 Government Nomination on the Bench II and Bench III of the Disciplinary Committee Bench II and III
 Stringent Action Against Adoption of Unfair Means
 Guidance Note on Audit of Banks 2018 edition issued by the Auditing and Assurance Standards Board
 Assessment Test of the Certificate Course on International Taxation organized by the Committee on International Taxation of ICAI -15th April, 2018 (Sunday)
 Advisory for the Members regarding Allocation of Work among the Joint Auditors in case of Bank Audits
  Group to Study the Amendments Proposed by the High Level Committee set up by the MCA
 Important Announcement - Membership

ICAI - Accounting norms from July 1
June, 13th 2009

Accounting guidelines on carbon credits will come into force from July 1. "The Council of the Institute of Chartered Accountants of India (ICAI) has scheduled a meeting between June 18-20 to approve the accounting guidelines on carbon credits,'' S Santhana Krishnan, chairman, Accounting Standards Board, ICAI, told TOI. Krishnan said that the guidelines will be made applicable to companies with effect from July 1.

This means, corporates will have to account for their issued carbon credits, as well as carbon credits which they may have sold in the current financial year, in the September quarter results.

For the current financial year, companies will have to account for carbon credits sold or issued to them by the United Nations Framework Convention on Climate Change (UNFCCC) from April 1 this year.

The core group, which framed the draft guidance note on the accounting guidelines, has concluded that carbon credits are "intangible assets'' and they need to be treated as "inventory'' in the balancesheet till they are sold. TOI had reported this in its edition dated January 7, 2009.

Under UNFCCC's clean development mechanism (CDM), a developed country can take up a greenhouse gas (GHG) reduction project activity in a developing country where the cost of GHG reduction is usually much lower and the developed country would be given carbon credits for meeting its emission reduction targets.

The unit associated with CDM is certified emission reduction (CER)__which are generally termed carbon credits where one CER is equal to one metric tonne of carbon dioxide equivalent.

"With large number of entities in India generating carbon credits and the carbon credits being a relatively new area, a need was felt to provide accounting guidance in this area,'' the guidance note states.

It provides guidance on matters of applying accounting principles relating to recognition, measurement and disclosures of CERs generated by the entity that has obtained the same under the CDM.

The note classifies CERs as `assets' of the generating entity. However, since issuance of CERs is subject to the verification process under the UNFCCC, CERs can be treated as contingent assets, only after it comes into existence, i.e. after the entity has been issued CERs by the UNFCCC. After this, CERs can be recognised in the financial statements.

"As the market for CERs is relatively new, the future economic benefits may not always be assured. Thus, an entity needs to make as assessment for the probable market for the CERs ensuring flow of economic benefits in the future, CERs should be recognised,'' the note states.

India has around 35 million annual CERs under way from registered projects, of which, a large pool remains unsold.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Company Overview

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions