Dear all "one of my clint company has got them selves a carbon credit certificate on account of efforts put by them on reducion of carbon dy oxide .now pls tell me accounting treatment together with enty & heads under which it will fall."
suman (Auditor ) (388 Points)
07 May 2011Dear all "one of my clint company has got them selves a carbon credit certificate on account of efforts put by them on reducion of carbon dy oxide .now pls tell me accounting treatment together with enty & heads under which it will fall."
Vineet Kumar Sharma
(Chartered Accountant)
(316 Points)
Replied 07 May 2011
Actually, Carbon Credit Certificates are Intangible Assets as they are identifiable, Non-monetary Assets & having no physical substance. Hence, AS-26 is applied on it.
Any Intangible Assets is recorded, if and only if, following 2 conditions are satisfied:-
1. That Assets gives future economic benefit to the Company; and
2. The Cost of Assets can be measured reliably.
CA Ashish Joshi
(CA)
(265 Points)
Replied 12 March 2012
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