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
ICAI »
 What is the reference of 18-Digits of UDIN?
 Results of the Common Proficiency Test (CPT) held in June 2019 declared.
 Result of the Information Systems Audit [ISA] Assessment Test held on 29th June 2019 declared.
 Announcement to Members and Students - Clarification on Foreign Languages
 What is the objective of UDIN?
 Educational Material on Indian Accounting Standard (Ind AS) 8, Accounting Policies, Changes in Accounting Estimates and Errors
 Indian Accounting Standards (Ind AS): An Overview (Revised 2019)
  Results of the Common Proficiency Test (CPT) held in June 2019 are likely to be declared on Thursday, the 18th July 2019.
 What is Unique Document Identification Number (UDIN)?
 Register for Second Exclusive Batches of German Language (120 Hours) for ICAI Members and Students at Delhi-20th July 2019
 Exposure drafts of ASLB 21, 'Impairment of Non-Cash Generating Assets', ASLB 26, 'Impairment of Cash Generating Assets' and ASLB 32, 'Service Concession Arrangements: Grantor'

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The core group, which framed the draft guidance note on the accounting guidelines, has concluded that carbon credits are "intangible assets'' and they need to be treated as "inventory'' in the balancesheet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 2019 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