FASB issues standard for clarifying environmental credit disclosures

FASB recently published an Accounting Standards Update (ASU) aimed at improving the financial accounting for and disclosure of activities related to environmental credits and environmental credit obligations.

According to a FASB news release, Environmental Credits and Environmental Credit Obligations (Topic 818) provides recognition, measurement, presentation and disclosure requirements for all entities that generate, purchase or receive environmental credits or have a regulatory compliance obligation that may be settled with environmental credits.

The ASU is effective for public business entities for annual reporting periods (and interim periods within those annual periods) beginning after Dec. 15, 2027. For other entities, the effective date is Dec. 15, 2028. Read more.