{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/818/10/#00-status","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"818","topic_title":"Environmental Credits and Environmental Credit Obligations","subtopic":"818-10","subtopic_title":"Overall","section":{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"818-10-00-1","para":"00-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following table identifies the changes made to this Subtopic.</div> <div class=\"norm-text\"><table class=\"asc-table\" frame=\"all\"> <tr> <td class=\"entry\"><strong class=\"ph b\">Paragraph</strong></td> <td class=\"entry\"><strong class=\"ph b\">Action</strong></td> <td class=\"entry\"><strong class=\"ph b\">Accounting Standards Update</strong></td> <td class=\"entry\"><strong class=\"ph b\">Date</strong></td> </tr> <tr> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> </tr> <tr> <td class=\"entry\"><a href=\"/glossary/a/#active-market\" class=\"term\" title=\"A market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.\"><span>Active Market</span></a></td> <td class=\"entry\">Added</td> <td class=\"entry\"><a href=\"/updates/asu-2026-02/\" class=\"xref\">Accounting Standards Update No. 2026-02</a></td> <td class=\"entry\">05/19/2026</td> </tr> <tr> <td class=\"entry\"><a href=\"/glossary/c/#compliance-environmental-credit\" class=\"term\" title=\"(P) December 16, 2027; (N) December 16, 2028818-10-65-1An environmental credit recognized as an asset in accordance with Topic 818 and probable of being used to settle an environmental credit obligation.\"><span>Compliance Environmental Credit</span></a></td> <td class=\"entry\">Added</td> <td class=\"entry\"><a href=\"/updates/asu-2026-02/\" class=\"xref\">Accounting Standards Update No. 2026-02</a></td> <td class=\"entry\">05/19/2026</td> </tr> <tr> <td class=\"entry\"><a href=\"/glossary/e/#environmental-credit\" class=\"term\" title=\"(P) December 16, 2027; (N) December 16, 2028818-10-65-1An enforceable right that is acquired, internally generated, granted by a regulatory agency or its designee(s), or received in a nonreciprocal transfer that is not a grant from a regulator or its designee(s) that meets all of the following criteria:Lacks physical substance and is not a financial asset.Is represented to prevent, control, reduce, or remove emissions or other pollution.Is, or previously was, separately transferable in an exchange transaction. If an item is no longer separately transferable in an exchange transaction, an entity must be able to use that item to satisfy an environmental credit obligation to meet this criterion.Is not an income tax credit that may be used to settle an entity’s income tax liability, regardless of whether the entity has a tax liability or intends to use the credit for that purpose.An environmental credit that meets the above criteria may exist in a variety of forms, including (but not limited to) credits, certificates, allowances, and offsets.\"><span>Environmental Credit</span></a></td> <td class=\"entry\">Added</td> <td class=\"entry\"><a href=\"/updates/asu-2026-02/\" class=\"xref\">Accounting Standards Update No. 2026-02</a></td> <td class=\"entry\">05/19/2026</td> </tr> <tr> <td class=\"entry\"><a href=\"/glossary/e/#environmental-credit-obligation\" class=\"term\" title=\"(P) December 16, 2027; (N) December 16, 2028818-10-65-1A regulatory compliance obligation arising from existing or enacted laws, statutes, or ordinances represented to prevent, control, reduce, or remove emissions or other pollution that may be settled with environmental credits. Obligations within the scope of Subtopic 410-30 are not environmental credit obligations.\"><span>Environmental Credit Obligation</span></a></td> <td class=\"entry\">Added</td> <td class=\"entry\"><a href=\"/updates/asu-2026-02/\" class=\"xref\">Accounting Standards Update No. 2026-02</a></td> <td class=\"entry\">05/19/2026</td> </tr> <tr> <td class=\"entry\"><a href=\"/glossary/e/#exchange\" class=\"term\" title=\"An exchange (or exchange transaction) is a reciprocal transfer between two entities that results in one of the entities acquiring assets or services or satisfying liabilities by surrendering other assets or services or incurring other obligations.\"><span>Exchange</span></a></td> <td class=\"entry\">Added</td> <td class=\"entry\"><a href=\"/updates/asu-2026-02/\" class=\"xref\">Accounting Standards Update No. 2026-02</a></td> <td class=\"entry\">05/19/2026</td> </tr> <tr> <td class=\"entry\"><a href=\"/glossary/f/#fair-value\" class=\"term\" title=\"The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.\"><span>Fair Value</span></a> (2nd def.) </td> <td class=\"entry\">Added</td> <td class=\"entry\"><a href=\"/updates/asu-2026-02/\" class=\"xref\">Accounting Standards Update No. 2026-02</a></td> <td class=\"entry\">05/19/2026</td> </tr> <tr> <td class=\"entry\"><a href=\"/glossary/f/#financial-asset\" class=\"term\" title=\"Cash, evidence of an ownership interest in an entity, or a contract that conveys to one entity a right to do either of the following: Receive cash or another financial instrument from a second entity Exchange other financial instruments on potentially favorable terms with the second entity.\"><span>Financial Asset</span></a></td> <td class=\"entry\">Added</td> <td class=\"entry\"><a href=\"/updates/asu-2026-02/\" class=\"xref\">Accounting Standards Update No. 2026-02</a></td> <td class=\"entry\">05/19/2026</td> </tr> <tr> <td class=\"entry\"><a href=\"/glossary/i/#income-taxes\" class=\"term\" title=\"Domestic and foreign federal (national), state, and local (including franchise) taxes based on income.\"><span>Income Taxes</span></a></td> <td class=\"entry\">Added</td> <td class=\"entry\"><a href=\"/updates/asu-2026-02/\" class=\"xref\">Accounting Standards Update No. 2026-02</a></td> <td class=\"entry\">05/19/2026</td> </tr> <tr> <td class=\"entry\"><a href=\"/glossary/m/#market-participants\" class=\"term\" title=\"Buyers and sellers in the principal (or most advantageous) market for the asset or liability that have all of the following characteristics: They are independent of each other, that is, they are not related parties, although the price in a related-party transaction may be used as an input to a fair value measurement if the reporting entity has evidence that the transaction was entered into at market terms They are knowledgeable, having a reasonable understanding about the asset or liability and the transaction using all available information, including information that might be obtained through due diligence efforts that are usual and customary They are able to enter into a transaction for the asset or liability They are willing to enter into a transaction for the asset or liability, that is, they are motivated but not forced or otherwise compelled to do so.\"><span>Market Participants</span></a></td> <td class=\"entry\">Added</td> <td class=\"entry\"><a href=\"/updates/asu-2026-02/\" class=\"xref\">Accounting Standards Update No. 2026-02</a></td> <td class=\"entry\">05/19/2026</td> </tr> <tr> <td class=\"entry\"><a href=\"/glossary/n/#noncompliance-environmental-credit\" class=\"term\" title=\"(P) December 16, 2027; (N) December 16, 2028818-10-65-1An environmental credit recognized as an asset in accordance with Topic 818 that is not a compliance environmental credit.\"><span>Noncompliance Environmental Credit</span></a></td> <td class=\"entry\">Added</td> <td class=\"entry\"><a href=\"/updates/asu-2026-02/\" class=\"xref\">Accounting Standards Update No. 2026-02</a></td> <td class=\"entry\">05/19/2026</td> </tr> <tr> <td class=\"entry\"><a href=\"/glossary/n/#nonreciprocal-transfer\" class=\"term\" title=\"Nonreciprocal transfer is a transfer of assets or services in one direction, either from an entity to its owners (whether or not in exchange for their ownership interests) or to another entity, or from owners or another entity to the entity. An entity's reacquisition of its outstanding stock is an example of a nonreciprocal transfer.\"><span>Nonreciprocal Transfer</span></a> (1st def.)</td> <td class=\"entry\">Added</td> <td class=\"entry\"><a href=\"/updates/asu-2026-02/\" class=\"xref\">Accounting Standards Update No. 2026-02</a></td> <td class=\"entry\">05/19/2026</td> </tr> <tr> <td class=\"entry\"><a href=\"/glossary/o/#orderly-transaction\" class=\"term\" title=\"A transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (for example, a forced liquidation or distress sale).\"><span>Orderly Transaction</span></a></td> <td class=\"entry\">Added</td> <td class=\"entry\"><a href=\"/updates/asu-2026-02/\" class=\"xref\">Accounting Standards Update No. 2026-02</a></td> <td class=\"entry\">05/19/2026</td> </tr> <tr> <td class=\"entry\"><a href=\"/glossary/p/#probable\" class=\"term\" title=\"The future event or events are likely to occur.\"><span>Probable</span></a></td> <td class=\"entry\">Added</td> <td class=\"entry\"><a href=\"/updates/asu-2026-02/\" class=\"xref\">Accounting Standards Update No. 2026-02</a></td> <td class=\"entry\">05/19/2026</td> </tr> <tr> <td class=\"entry\"><a href=\"/glossary/r/#related-parties\" class=\"term\" title=\"Related parties include: Affiliates of the entity Entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825-10-15, to be accounted for by the equity method by the investing entity Trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management Principal owners of the entity and members of their immediate families Management of the entity and members of their immediate families Other parties with which the entity may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.\"><span>Related Parties</span></a></td> <td class=\"entry\">Added</td> <td class=\"entry\"><a href=\"/updates/asu-2026-02/\" class=\"xref\">Accounting Standards Update No. 2026-02</a></td> <td class=\"entry\">05/19/2026</td> </tr> <tr> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> </tr> <tr> <td class=\"entry\"><div class=\"xref-range displayInline\"><a href=\"/asc/818/10/#818-10-05-1\" class=\"xref\">818-10-05-1 through 05-3</a></div></td> <td class=\"entry\">Added</td> <td class=\"entry\"><a href=\"/updates/asu-2026-02/\" class=\"xref\">Accounting Standards Update No. 2026-02</a></td> <td class=\"entry\">05/19/2026</td> </tr> <tr> <td class=\"entry\"><a href=\"/asc/818/10/#818-10-10-1\" class=\"xref\">818-10-10-1</a></td> <td class=\"entry\">Added</td> <td class=\"entry\"><a href=\"/updates/asu-2026-02/\" class=\"xref\">Accounting Standards Update No. 2026-02</a></td> <td class=\"entry\">05/19/2026</td> </tr> <tr> <td class=\"entry\"><div class=\"xref-range displayInline\"><a href=\"/asc/818/10/#818-10-15-1\" class=\"xref\">818-10-15-1 through 15-3</a></div></td> <td class=\"entry\">Added</td> <td class=\"entry\"><a href=\"/updates/asu-2026-02/\" class=\"xref\">Accounting Standards Update No. 2026-02</a></td> <td class=\"entry\">05/19/2026</td> </tr> <tr> <td class=\"entry\"><a href=\"/asc/818/10/#818-10-55-1\" class=\"xref\">818-10-55-1</a></td> <td class=\"entry\">Added</td> <td class=\"entry\"><a href=\"/updates/asu-2026-02/\" class=\"xref\">Accounting Standards Update No. 2026-02</a></td> <td class=\"entry\">05/19/2026</td> </tr> <tr> <td class=\"entry\"><a href=\"/asc/818/10/#818-10-65-1\" class=\"xref\">818-10-65-1</a></td> <td class=\"entry\">Added</td> <td class=\"entry\"><a href=\"/updates/asu-2026-02/\" class=\"xref\">Accounting Standards Update No. 2026-02</a></td> <td class=\"entry\">05/19/2026</td> </tr> </table></div> </div>","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nActive Market | Added | Accounting Standards Update No. 2026-02 | 05/19/2026 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