Research On Accounting Treatment Of Carbon Emission Rights Under The New Regulations

At present,the problem of global warming is becoming increasingly serious.China has always attached great importance to the work of responding to environmental changes.The Fourth Plenary Session of the 19 th CPC Central Committee pointed out,it is necessary to promote market-oriented green technology innovation and promote green and low-carbon development.China’s carbon emission trading market is developing rapidly.However,China’s carbon emission accounting standards have not been established.In 2016,China issued the Interim Provisions on the Accounting Treatment of the Pilot Carbon Emission Trading(Draft for comment).It is the first reference to the accounting treatment of carbon emission rights.Subsequently,in 2019,China issued the Interim Provisions on Accounting Treatment for Carbon Emissions Trading,it’s a new discussion on China’s carbon emission rights.Based on this background,this paper studies the accounting treatment of carbon emission rights in the new interim regulations,and take Company A as an example to analyze the differences in accounting of carbon emission rights under the new interim regulations,and the application of the new interim regulations to Company A and its impact on Company A,so as to discuss the progress and deficiencies of the new interim regulations in practical applications,and give related suggestions.The research in this paper finds that the new “Interim Regulations” have made some progress,but there are still four deficiencies in practical application:(1)The quotas issued by the government without compensation will not be confirmed.(2)Only cost model is used for measurement.(3)It is directly included in non-operating income when the quota is obtained by selling for free.(4)Information disclosure on carbon emission rights is not comprehensive.Therefore,this paper attempts to make relevant suggestions:(1)The quotas issued by the government for free shall be recognized as assets.(2)In accounting measurement,the principle of common measurement of fair value and cost model should be adopted.(3)When selling freely obtained quotas,it is necessary to carry forward costs while recognizing revenue.(4)When companies disclose their carbon emission rights,they should increase the scope of the listed items in the table,and increase the disclosure of risks related to carbon emission rights when it is off-balance sheet.Through the research on the application of accounting treatment of company A’s carbon emission rights under the new interim regulations,and analyze its different impacts on Company A,this paper analyzes the progress and deficiencies of the new interim regulations in practical application and puts forward some suggestions.It can provide reference for China to establish formal carbon emission rights accounting treatment standards,and help China establish a standardized carbon emission rights accounting treatment system.Thus promoting the development of China’s carbon emissions trading market,promoting the establishment of environmentally friendly enterprises,and further strengthening the construction of ecological civilization in our country.