As companies progress towards their net-zero emissions targets, the rise in voluntary green schemes has triggered an increase in financial reporting questions on their accounting treatment.
In this podcast – the latest in our series on the impact of this transition on financial reporting under IFRS® Accounting Standards – Allison McManus and Irina Ipatova look specifically at how voluntary green schemes work.
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Unlike mandatory schemes in which a polluting company needs to limit its emissions or pay for an excess, voluntary schemes are designed to drive greener behaviour.
We need to understand the terms and conditions of each scheme to be able to determine the financial reporting implications, because each scheme can be different.
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