Advanced Accounting Issues Assignment 2022

Running Head: ADVANCED ACCOUNTING ISSUES
ADVANCED ACCOUNTING ISSUES
Name of the Student
Name of the University
Author Note

1ADVANCED ACCOUNTING ISSUES
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................3
Current Development in Emissions Trading Schemes...........................................................3
Consistency between Participating Countries in Emission Trading Schemes.......................4
Factors Influencing Corporate Accounting Policy Choice for Carbon Emissions Allowance
................................................................................................................................................5
Analysis of Financial Information Disclosures about Carbon Emissions Allowances from
EU ETS participating Countries.............................................................................................6
Consistency of Accounting Measurements of Carbon Emissions Allowances between
Europe Countries................................................................................................................8
Comparison of Carbon Emissions Allowances Measurement between European
companies and ASX listed companies...............................................................................9
Findings................................................................................................................................10
Conclusion................................................................................................................................11
Reference..................................................................................................................................13

2ADVANCED ACCOUNTING ISSUES
Introduction
The expansion of the carbon market has produced great challenges for business
organizations in which the accounting for the carbon emission is considered as the least
implied area. The country Europe, which is the experts of the carbon trading are still working
on the agreements regarding the including carbon emissions rights in financial statements.
However, other countries are still struggling with the issues of accounting. Moreover, with
the growth of the carbon market as well as integration of the new constituents more issues of
the accounting will continue to materialize (Ascui 2014). In this concern, globally, the
accounting standard setters have made their foresights on this particular foresight. However,
there is still absence of the accounting standard of firm for dealing with the accounting of
carbon emissions. The topic of carbon trading is getting popular but the managing these
particular issues still putting great challenges because of the absence of the comprehensible
guidelines from the authorities concerned such as IASB and FASB on approaches of carbon
emission accounting in company’s books (Larrinaga 2014).
Hence, in this assignment, discussion will be done on the current development in
emissions trading schemes in developed as well as developing countries around world.
Further, discussion will be on whether the accounting policies for carbon emissions rights are
consistent between the participating companies in emission trading schemes. In addition,
theory will be discussed regarding the factors that may influence choice of corporate
accounting policy for accounting for carbon emissions allowances. Moreover, analysis of the
financial information disclosures about carbon emissions allowances from EU ETS
participating companies will be done along with discussion on the consistency and
comparison between the four international companies based in Europe and ASX based
companies. Lastly, findings will be given based on the analysis.

3ADVANCED ACCOUNTING ISSUES
Discussion
1)
Current Development in Emissions Trading Schemes
There are increasing numbers of the countries as well as regions all around world,
which are developing as well as implementing the emissions trading as the way for putting
the prices on the greenhouse gas emissions. The approach of Emissions trading is the
approach that is market-based for controlling the pollution with the help of providing the
economic incentives for achieving the reductions in emissions of the pollutants. There are
different states, countries as well as groups of the organizations, who have adopted the
emissions trading systems for mitigating the change in climate (Weiet al. 2014).
All around the world, developed as well as developing countries are indulged in)
developing the emissions trading systems. Now, such programmes are in place in the Europe,
some parts of Asia and North America. There exist great difficulties in achieving the
consensus on the measures of the climate change mitigation by the negotiations of the
multilateral climate. There appears to be shifting of the momentum from international level to
national regions and states (Zhou and Wang 2016). In the rapidly developing economies,
there is visibility of strong dynamics, under discussion or already established with the new
trading systems in Brazil, South Korea, India and China. Globally, around thirty-nine national
as well as twenty-three sub-national jurisdictions have already implemented or it is scheduled
for the implementations of the carbon pricing instruments that include emissions trading
systems as well as taxes. Further, the largest carbon market of the world is European
Emissions trading scheme that is abbreviated as EU-ETS has covered the sectors, which
emits each year over 2 billion tonnes of the carbon dioxide (Lovell 2014).
2)