Reporting Entity B decides to sell the asset it has previously produced (see §9.1.2.) to an entity that will report it under GAAP. Following this transaction reporting entity B would have sold all of its assets. The following booking would take place: Theses bookings would lead to the following final […]
9.2.1 Derecognition of an asset which was acquired through a transaction that does not in itself generate new carbon emissions (§ 4.1.1(a))
Reporting entity A decides to sell the asset it has acquired previously (see §9.1.2) to an entity that will report it under GAAP. Following this transaction reporting entity A would have sold all of its assets, The following booking would take place: Theses bookings would lead to the following final […]
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 […]
9.1.2. The Embedded Carbon Asset was produced by the reporting entity in a process that does generate new carbon emissions (§ 4.1.1(b))
Reporting entity B produce a new asset, and emit in the production process carbon for a total value of 100 CU. The reporting entity uses a production process which is representative of the standard production process of its industry. This results in a fair value of 100 CU for the […]
9.1.1. The Embedded Carbon Asset was acquired through a transaction that does not in itself generate new carbon emissions (§ 4.1.1(a))
Reporting entity A acquires an existing asset with an Embedded Carbon Asset at fair value of 100 CU. The reporting entity further determine that 25% of the asset cannot be further reused in a future production process. Finally, the reporting entity estimate that the total value of the carbon that […]
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: While this framework has been conceived with the view of construction and management of real estate in mind, it could be conceptually adapted for other industries. […]
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 […]