Polluter Corp.

In May 2011, the IASB issued IFRS 10, Consolidated Financial Statements, which replaced IAS 27 and SIC 12. IFRS 10 is effective for annual periods beginning on or after January 1, 2013. Early application is permitted under specific circumstances. Under IFRS 10, control is

To aid us in our decision making process in the matter of determining the appropriate classifications in the statement of cash flows for the purchase and sale of EAs, we primarily used the Accounting Standards Codification

Refer to the above table. How much money was saved (between the two firms) to reduce emissions by 1 ton each by allowing for tradable pollution permits?:

One way of obtaining individual caps is for the government to auction off emission permits that total the pre-set amount of emissions that it feels is optimal. Firms with higher costs of reducing emissions will bid higher than firms with lower cost structures. Again, the only problem is determining what the total amount of emissions should be reflecting all social costs and benefits of reducing carbon emissions.

This amendment allowed the government to enforce the cap and trade on specific companies and established the allowances market to commodify emissions. By treating emissions as a commodity, businesses are able to trade and sell allowances to either stay within regulations or gain revenue by being more efficient than others. The EPA’s first phase began in 1995 with the enforcement of 110 companies to reduce emissions, and the second phase was to include coal burning power plants. Overall, this led to a decrease by 41% of emissions compared to the 1980s. The ability of the government to enforce these cap and trade policies as well provide the public with a clear understanding of the ramifications of acid rain is a clear projection of the credibility of the science being put forth.

The clean Air Act under the section 111(d) creates a partnership between EPA, states, tribes and U.S. territories with EPA setting a goal and states and tribes choosing how they will meet it. EPA is defining interim and final CO2 emission performance rates for two subcategories of fossil fuel-fired electric generating units (EGU’s):

I found your company, Berkshire Hathaway on a list of UMASS research top 100 polluters of 2016. As you should know, pollution slowly kills the earth and your company is contributing to a bad living environment for teenagers like me all over the world. Pollution in countries like China is directly responsible for breathing problems like asthma. Since your company does business all over the word, it should pollute at a lower level in 2017. I don’t know if you intend to pollute the earth, but your company pollutes 19.6% of American Company’s “toxics released into the air”, according to the UMASS website. There are many ways pollution can affect many places such as oceans, trees and get into the ground. Your companies can still succeed and make

In this, they will be generating excess of allowed emission level in Phase 1 (1995-1999) and would have to buy those allowances. Starting Phase 2 (year 2000), they would be in a state to sell the allowances.

A federal law known as “The Clean Air Act” is intended to protect the environment from air pollution and its effect on human health (UCSUSA). This act is enforced by creating direct commands to firms know as standards, these standards are able to reduce emissions, by requiring people to do things that result in less pollution. For example, one way pollution can be reduced is through public transportation, which saves money and energy. Four standards that can be used are ambient standards, emission standards, input standards, and a technology standards. These control standards can be evaluated to see which is more effective, this is done by comparing three things, which are technological improvement incentives, technological feasibility and

Property, plant and equipment is at first measured at its cost, therefore measured either utilizing a cost or revaluation demonstrate, and devalued so that its depreciable sum is dispensed on an orderly premise over its valuable life. IAS 16 was reissued in December 2003 and applies to annual periods beginning on or after 1 January 2005. (IAS 16)

Emissions allowances are considered intangible assets in accordance with IAS 38. Paragraph 10 of IAS 38 describes that an asset is intangible if it holds, “identifiability, control over a resource and existence of future economic benefits. “ Identifiability, is defined in Paragraph 12(b), which states, “an asset is identifiable if it is separable, i.e., is capable of being separated or divided from the entity and sold, transferred…” EAs match this criterion for they can be sold and purchased between companies. Paragraph 13 defines control as “the power to obtain the future economic benefits flowing from the underlying resource and to restrict the access of others to those benefits. “ Columbia Corporation has the ability to strictly retain the benefit of EAs if they so chose. Finally, Paragraph 17 states, “the future economic benefits flowing from an intangible asset may include revenue from the sale of products or services, cost savings, or other benefits resulting from the use of the asset by the entity. “ EAs have the ability to provide all these benefits. If sold, they could provide revenue. If bought or used efficiently, EAs could save money by decreasing an

AASB 138 defines intangible assets as “identifiable non-monetary assets without physical substance”. Such assets include but are not limited to goodwill, trademarks, patents and research and development. AASB 138 Intangible Assets has been implemented to prescribe the accounting treatment for intangible assets that have not been specifically dealt with in any other standard. Therefore, this standard only applies to intangible assets that have not been previously dealt with. Furthermore, it can be established that this standard is an example of normative accounting theories because the standard prescribes what should be done, rather than predicts what people may do. According to AASB 138 Intangible Assets, in order for an asset to be recognised in the financial statements it must meet specific criteria. The required criterion states that the asset must be identifiable, the entity has control of the asset, future economic benefits are probable and the cost of the asset can be measured reliably.

IFRS 13 provides a principles-based framework for measuring fair value in IFRS. This is based on a number of key concepts including unit of account; exit price; valuation premise; highest and best use; principal market; market participant assumptions and the fair value hierarchy. Fair value is an important measurement on the basis of financial reporting. It provides information about what an entity might realize if it sold an asset or might pay to transfer a liability. In recent years, the use of fair value as a measurement basis for financial reporting has been expanded. Determining fair value often requires a variety of assumptions as well as significant judgment. Thus, investors desire timely and

The accounting world is shaped by stringent and clear rules, principles, standards and guidelines. These are all meant to define accounting operations and reporting discipline. With the emergence of International Accounting Standards (IAS), which was later replaced by International Financial Reporting Standards (IFRS), the accounting concepts, analysis, disclosures, reporting and presentation became easier and practical. Currently, accountants, managers and related parties find it concrete and consistent in protecting professional boundaries.

In the past, a fixed fee was charged to the industries, and it was difficult to find a relationship between pollutant discharges and the licence fee. Inequity in licence fees was resulted therefrom, and there was very little incentive available for licence holders. Consequently, this approach was regarded as an unpleasant cost, and the earnest licence holders had to be economically disadvantaged by the neglected licensing system. Furthermore, ineffective system in environment protection licence failed to reduce emissions and irreversible impacts on the environment were perceived.