{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/818/10/#55-implementation-guidance-and-illustrations","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":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Implementation Guidance","paragraphs":[{"citation":"818-10-55-1","para":"55-1","html":"<div class=\"asc-body\"><div class=\"div pending-text\" id=\"cdr_32v_djc__GUID-9297B33A-37BB-458F-BF34-855D7EEF14AC\"><div class=\"div date-effective\"><span class=\"transition-header\">Transition date:</span><span class=\"p-alphabet\">(P) December 16, 2027; (N) December 16, 2028</span><span class=\"transition-header pipe-separator\">Transition guidance:</span></div><a href=\"/asc/818/10/#818-10-65-1\" class=\"xref\">818-10-65-1</a><span class=\"sfragment\" id=\"GUID-4659564B-C5B5-4E65-B1B3-278AC9B6D267\"><span class=\"sfragment-source\">The existence of <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 markets</span></a> is not a requirement when determining whether an item that may be an <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> is separately transferable in an <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> transaction. Additionally, the length of time that an item is transferable should not be considered for that purpose. In certain instances, an item may only be separately transferable momentarily because an entity retires the item immediately after obtaining it or instructs another party, such as a broker, to do so. That item would be subject to the provisions of this Topic if all other criteria in the environmental credit definition are met. </span></span></div></div>","snippet":"Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance:818-10-65-1The existence of active markets is not a requirement when determining whether an item that may be an environmental credit is sepa…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b63eca9e12eb75294fb481c84a6f759b677339ac693f384052d07fdad3a2e9bc","downloaded_from":"2026-09-10T01:41:54.465Z","last_downloaded_at":"2026-09-10T01:41:54.465Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476122","source_sha256":"1c10f1f9d2cddfbe5f920d094842aa7583cba5ef433b0e1cb2c8cb3c5d3fcc65"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d7c4868a7ae3bf632169834e1a9b3bb2a2bb323ac17a0aef4a2fb8cf0c23fe65","downloaded_from":"2026-09-10T01:41:54.465Z","last_downloaded_at":"2026-09-10T01:41:54.465Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476122","source_sha256":"1c10f1f9d2cddfbe5f920d094842aa7583cba5ef433b0e1cb2c8cb3c5d3fcc65"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3687ae425efc3aee64f8750001f6ea6a127dc482f618a621dc302dc9271a81b4","downloaded_from":"2026-09-10T01:41:54.465Z","last_downloaded_at":"2026-09-10T01:41:54.465Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476122","source_sha256":"1c10f1f9d2cddfbe5f920d094842aa7583cba5ef433b0e1cb2c8cb3c5d3fcc65"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3687ae425efc3aee64f8750001f6ea6a127dc482f618a621dc302dc9271a81b4","downloaded_from":"2026-09-10T01:41:54.465Z","last_downloaded_at":"2026-09-10T01:41:54.465Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476122","source_sha256":"1c10f1f9d2cddfbe5f920d094842aa7583cba5ef433b0e1cb2c8cb3c5d3fcc65"}}