The Research On Accounting Recognition,Measurement And Disclosure Of Carbon Emission Liability

In recent years,with the emission of greenhouse gases such as carbon dioxide,global warming becomes more and more serious,which leads to a serious of political,economic and social issues and attracts extensive attentions worldwide.Most countries have reached a consensus that it is urgent to reduce greenhouse gas emissions and develop a low-carbon economy.Given this,United Nations Framework Convention on Climate Change and Kyoto Protocol emerged at the right moment and identified three cooperated trading mechanisms to achieve emission reduction.After that,carbon emissions trading has sequentially developed in many countries,which puts forward certain requirements to the development of the carbon accounting theory.As for now,carbon accounting standards are absent worldwide.Carbon emission liability is of great importance to the carbon accounting theory.So the research of this paper can establish a theoretical basis for carbon accounting and further advance persist and standard development of carbon emissions trading.This article studies the recognition,measurement and disclosure of the carbon emission liability using inductive and summary method in accordance with ‘status-divergence-analysis'.There are two divergences on carbon emission liability recognition.The first one is that if the company is under current obligation when it gets carbon allowances free from the state.The second one is the recognition time of the liability related to emission.The company have not performed any carbon emissions when it gets carbon allowances free and it can change its obligation though its behaviours,which means the obligation is uncertain and not current obligation.Therefore,the company should not recognize a liability.While the company performs carbon emissions,it is under current liability and should recognize a liability.On carbon emission liability measurement,there are different ideas as to the choices of measurement attributes and measurement methods.The optional measurement attributes are fair value with remeasurement model,fair value with no remeasurement model,historical cost model and business model.Under the fair value with remeasurement model,the measurementof allocated allowances and purchased allowances could be consistent and the assets and liabilities of carbon emissions are matched,which reflects company's ability of fulfilling the obligations.Thus,the fair value with remeasurement model is more appropriate.As for the measurement method,the article considers that the carbon emission liability should be measured according to actual emission.On carbon emission liability disclosure,there are different ideas as to the choice of disclose methods.The disclosure methods are total presentation,net presentation and linked presentation.According to linked presentation,the allowances and related liabilities are presented gross on the face of the balance sheet and total to a net emission asset or net emission liability.Linked presentation reflects the interrelated nature of the allowances and related liabilities,avoids inflate assets or liabilities,minimizes the impacts on financial ratios,expresses the results of the carbon emissions trading on the financial station.Therefore,linked presentation is more appropriate.And the companies should present accounting policies and accounting estimates related to carbon emission liabilities,changes of carbon emission assets and liabilities,enterprises punishments and carbon emission information in the notes to financial statements.On the basis of this,this article puts forward some suggestions on the recognition,measurement and disclosure of carbon emission liability,so as to provide some references for the formulation of accounting standards on carbon accounting in China.This paper takes carbon emission liability as the research object and systematically analyzes its recognition,measurement,and disclosure,which is the innovation.The defects are that this article just studies carbon emission liability under ETS and data on practical application of listed company are not enough.