CARBON CREDITS ACCOUNTING REFLEXION IN THE BALANCE SHEET: AN ACCOUNTANT’S PERSPECTIVE

ABSTRACT

As part of the Kyoto Protocol, a global policy was drafted at limiting green house gas emissions and steady steps are being taken to implement limits on carbon emission on the macroeconomic scale. Markets are being formulated so that companies can barter carbon allowances. Turning the environment, into a public product and into private property presents multiple economic challenges. This paper explores the allusions of the policy direction established in the Kyoto accord. Several alterations to corporate accounting policy are asserted. The perceived benefit is that socially responsible professionals will tabulate their corporation’s cost and financial accounting procedures to encourage success as carbon emissions develops and more regulated.

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