The organization has paid money to the government authorities for plantation under greeen credit scheme. For the trees planted, the organization will get Green Credit which can be utilized either for set off of any penalty or amount required to be paid under forest conservation or direct market trading. The credits will be given on percentage basis like after completion of planation, then after 2 years 20% credits will be given, then after 5 years 50% credits and so on. 100% credits will be given within 10 years.
How the accounting of lumpsum amount paid to the government authorities shall be made in the books of accounts? And how the green credit received shall be accounted for? And if the green credits are to be shown as inventory then what shall be the value of the credits.
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