Australia

Details

  • Service: Audit, Financial Statement Audit, Financial Reporting & Accounting Standards, Accounting Advisory Services, Climate Change & Accounting Assurance
  • Type: Regulatory update
  • Date: 5/04/2012

Reporting Updates

Reporting Updates
Reporting Updates (formerly known as Flash Reports) outline changes occurring within the Australian financial reporting environment.

12RU-003 Accounting during fixed price period of Carbon Pricing Mechanism 

This Reporting Update focuses on the accounting considerations during the fixed price period of the Clean Energy Act (Act). Entities receiving free permits under the Act have several accounting issues to consider when the Carbon Pricing Mechanism commences on 1 July 2012.

This publication discusses the alternative treatments for allocated free permits, the flow-on impact on the measurement of emission liabilities and the corresponding impact on income statements. It also addresses cash assistance and the accounting considerations by a direct emitter.

 

Key points

  • No authoritative accounting guidance explicitly dealing with transactions involving carbon permits.
  • Entities receiving free carbon permits under the Clean Energy Act have several accounting issues to consider when the Carbon Pricing Mechanism commences on 1 July 2012.
  • Consult with your advisers prior to the commencement of the Carbon Pricing Mechanism on the appropriate accounting policy for free carbon permits.
Flash Reports - Australian financial reporting updates