Green Credits Move Closer to Earning Spot in Accounting Rulebook

Companies that use renewable energy credits, carbon offsets, or cap-and-trade programs moved a step closer on Wednesday to getting clearer accounting rules on how to report these credits in their financial statements.

First up: US accounting standard-setters fine-tuned what exactly would qualify as an environmental credit under potential new accounting rules. Credits are acquired or granted from regulators to businesses for performance, such as generating energy from renewable sources or producing or selling products designed to reduce or remove pollution, members of the Financial Accounting Standard Board agreed on Wednesday.

The board specified that credits can take a variety of ...