Accounting for Carbon Credits

At present, there are no specific International Financial Reporting Standards (IFRS) or US Generally Accepted Accounting Principles (US GAAP), or interpretations of those standards, that relate to carbon credit markets. This whitepaper addresses key accounting questions under existing guidance for both compliance carbon credits and voluntary carbon credits.

The paper addresses key accounting issues for entities that expect to use carbon credits to offset their own emissions, those that will trade these instruments in a secondary market and those that intend to do a combination of both. The paper addresses issues relevant to the application of both IFRS and US GAAP, although IFRS is the principal focus.

ISDA encourages the International Accounting Standards Board and the Financial Accounting Standards Board to work together where possible to develop consistent accounting standards for carbon credits under IFRS and US GAAP.

Documents (1) for Accounting for Carbon Credits

Strengthening DC Governance

The Credit Derivatives Determinations Committees (DCs) play a vital role. Without a single, industry-wide determination on whether a credit event has occurred, it simply wouldn’t be possible to clear credit default swaps (CDS), making the market less safe and less...

ISDA CSA Significant Errors Notification SOP

The ISDA CSA Notification of Significant Error or Omissions Suggested Operational Practices (SOP) considers current institutional processes and outlines suggested operational practices related to the new requirement under §26.3(2) of the Canadian Trade Repositories and Derivatives Data Reporting rules rewrite...

ISDA Paper on UPI Identifiers

On July 16, ISDA submitted a paper (UPI as the Foundation for OTC Derivatives Reporting: The Case for UPI) to the UK Financial Conduct Authority (FCA). The paper was developed to complement ISDA’s response to the FCA’s discussion paper DP24/2:...

IRD Trading Activity First Quarter of 2025

This report analyzes interest rate derivatives (IRD) trading activity reported in Europe. The analysis is based on transactions publicly reported by 30 European approved publication arrangements (APAs) and trading venues (TVs). Key highlights for the first quarter of 2025 include:...