Accounting Rules Gap Means Chaos Over Carbon Credit Reports (1)

A lack of guidance over how to account for carbon credits and similar instruments has led to wide variations in corporate reporting, according to a new analysis.

The Association of Chartered Certified Accountants and the Adam Smith Business School at the University of Glasgow published the results of a survey of 300 companies globally, concentrating on high-polluting sectors. This found that, in the absence of any dedicated accounting rules, there was no consistency in the reporting of carbon-related instruments such as carbon credits, which allow companies to offset the pollution they cause.

• “Without guidance from standard setters, companies are ...