Research On Accounting Treatment Of Emission Trading Right

Recently,China have tried to launch the emission trading systems,which selected thermal power,steel,cement,paper,printing and dyeing as key trading industries,with SO2,NOX,COD and Ammonia nitrogen as pollution factor of the deal.That scarce environmental resources gradually rooted in the people’s feeling.Reducing the emission of pollutants inspired the enterprise to release profits.More companies report accounting information on emissions trading.With the perfection of the laws and regulations,the number of the emissions trading have increased significantly.The accounting treatment will also become more standardized.The national emission trading will eventually form standardized model called “one certificate” to make known to the public.This article discusses the current status of accounting treatment of emissions trading with specific case companies in Zhejiang Province from the perspective of financial accounting,the definition,and the characteristics of different industries,as well as related accounting standards.The following studies with the accounting confirmation,measurement,presentation and disclosure.China has a large gap in the research on emissions trading.With the strengthening of corporate environmental protection,the accounting treatment of emissions trading in enterprises will become more obvious and resolved urgently.In conclusion,enterprises could think about the industry,the holding purpose,the confirming conditions when accounting confirmation is made.It is recommended to set up a separate “emissions right” account.In addition,accounting measurement can adopt the degree of market activity.Regarding the presentation of emission rights,a set of standardized emission reports and disclosing systems can be formulated based on the industry sector in which the emission right indicators are used,and is not limited to on-or off-balance sheet.