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Accounting implications of the Carbon Tax

The Carbon Pricing Mechanism (CPM) came into operation on 1 July 2012. It comprises a fixed price phase from 1 July 2012 to 30 June 2015 where permits have a fixed price set by the federal government; and then a flexible price phase from 1 July 2015, in which permits would be traded.

The AASB has released a staff paper outlining some of the key financial reporting issues that may arise for emitter entities during the fixed price phase of the carbon pricing mechanism (CPM) and possible accounting treatments in respect of those issues based on current Australian Accounting Standards.

The staff paper includes a table depicting the Accounting Standards that could apply in accounting for the effects of the carbon tax by for-profit (FP) and not-for-profit (NFP) entities.

Click here to view the staff paper

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