Change in Fair value according to the Fair Value §5 section are recorded through the reporting entity carbon P&L.

In order to provide a better understanding of the dynamics of the change in fair value the P&L of the reporting entity will identify separately

•  the changes driven by a change in the carbon price which shall be booked through the line-item “Gain/Loss because of the change in carbon price”,
• the changes driven by underlying changes in amount of carbon that would be needed by a reasonable market participant using readily available technology to produce an asset that would achieve similar economic benefits (see Fair Value of an Embedded Carbon Asset §5.1.3.) which shall be booked through the line-item “Gain/Loss because of the change in production technology”,
• the changes driven by the first-time valuation at fair value of Embedded Asset which were initially value as Embedded Carbon as a result of company’s activity (see Embedded Carbon Asset §4.1.2.2 ), which should be booked through the line item “Carbon Expense as a result of production of carbon assets”