Reality of accounting for carbon-related instruments

Citation

Baboukardos D, Dionysiou D, Slack R, Tsalavoutas I & Tsoligkas F (2025) Reality of accounting for carbon-related instruments. ACCA. ACCA and Adam Smith Business School. https://www.accaglobal.com/gb/en/professional-insights/global-profession/carbon-related-instruments.html

Abstract
As carbon markets grow in scale and importance, so too does the need for clarity in how carbon-related instruments (such as allowances and credits) are accounted for in financial statements. In the absence of a dedicated global accounting standard for these instruments, companies are adopting diverse and often inconsistent accounting treatments, creating challenges for preparers, auditors and users alike. To support the profession in addressing this emerging area, ACCA has published a comprehensive global research report, Reality of accounting for carbon-related instruments, alongside two new companion articles. Together, these resources offer an overview of current practice and provide practical guidance for those seeking to develop or refine their approach to accounting for carbon-related instruments.