Accounting for Environmental Credit Programs

Front

Why do environmental credits matter in accounting?

Back

They are becoming valuable assets and liabilities

Front

What is the main reason the FASB started this project?

Back

To make rules clearer and more consistent

Front

What is an environmental credit?

Back

A right companies can trade or use to reduce emissions.

Front

The FASB’s proposal says companies can net (combine) environmental credits and obligations on the balance sheet.

Back

False

Front

When can a company record a credit as an asset?

Back

When it’s probable they’ll use or sell it

Front

What is an Exposure Draft?

Back

A proposal shared for public feedback before becoming final

Front

What is one benefit of the new rule?

Back

It makes reporting more consistent

Front

The Exposure Draft helps make sure new accounting rules are reviewed and open to public feedback before becoming final.

Back

True

Front

What did accounting firms like RSM and EY say about the proposal?

Back

They supported it and said it would help investors.

Front

What was the overall message from the comment letters sent to the FASB?

Back

Many supported the proposal for being clear, useful, and consistent