Buying vs producing. What differences ?

At the end of the two transactions described in 9.1.1 and 9.1.2, the two-reporting entity own the same asset. Their total assets and liabilities are the same. The only difference is that reporting entity A have book 100 CU as “Unpaid-Carbon acquired by the company”. While reporting entity B have […]

1. Introduction

Since carbon emissions are currently not specifically priced, it does not yet represent part of the acquisition cost of assets. As such, it is currently not accounted for under e.g., International Financial Reporting Standards (IFRS), US or local generally accepted accounting principles (GAAP). The purpose of this document is to […]

8.2 Chart of Account – Profit and Loss

A reporting entity shall present its carbon profit and loss Statement using the following charts of accounts: Carbon Profit and Loss Statement Carbon Revenues Transaction Gain/Loss as a result of acquisition/sale of operational carbon Gain Loss as a result of acquisition/sale of Embedded Carbon Transaction result Carbon Efficiency Gain/Loss of […]

8.1 Chart of accounts – Balance Sheet

A reporting entity shall present its carbon balance sheet using the following charts of accounts: Carbon Balance Sheet – Carbon Assets – Embedded carbon asset as a result of production Embedded Carbon asset at fair value Embedded Carbon deduction for lack of reusability Total Carbon Assets Carbon Balance Sheet – […]

2. Scoping and Definitions

2.1 Scoping The manual is intended to provide a guideline for companies that cause carbon emissions. The main objectives of this accounting manual are: To establish an “accounting” model that reflects the actual cost of consumption of operational and value of embedded carbon by a reporting entity. The preparation of […]

3. Assumptions and Estimates

3.1. Definition Unlike financial accounting where most of the input can be reliably estimated, carbon accounting will rely on a substantial amount of assumption and estimated, as well as key judgment from the reporting entity. Theses assumption and estimate will be related to input data with respect to paid and […]