{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/818/20/#05-overview-and-background","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":"818-20","subtopic_title":"Environmental Credits","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"818-20-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"div pending-text\" id=\"pgroup_p4d_j2d_y3c__GUID-350B2FE8-932A-4C28-94F3-D48922A36F5A\"><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-54A642A4-0DB5-4DF2-A191-DDEC34FA989E\"><span class=\"sfragment-source\">This Subtopic addresses the accounting for 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>. Paragraph <a href=\"/asc/818/20/#818-20-55-1\" class=\"xref\">818-20-55-1</a> provides a flowchart of the recognition and measurement requirements of this Subtopic. </span></span></div></div>","snippet":"Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance:818-10-65-1This Subtopic addresses the accounting for an environmental credit. Paragraph 818-20-55-1 provides a flowchart of the recognition…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8da470c76b6eb32b967ba165b254bd6eccce8e09f8a07d409bb82a2feb8615c9","downloaded_from":"2026-09-10T01:42:04.181Z","last_downloaded_at":"2026-09-10T01:42:04.181Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476101","source_sha256":"f8cc7f7c6be13b244a95ba6fd224d910dcc2679e60f06704f6ebffa239ea5204"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c02b6531f20e85d5788304bf686e0ec62763251c541d96136fa1eb41fb7a08b0","downloaded_from":"2026-09-10T01:42:04.181Z","last_downloaded_at":"2026-09-10T01:42:04.181Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476101","source_sha256":"f8cc7f7c6be13b244a95ba6fd224d910dcc2679e60f06704f6ebffa239ea5204"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d8eac502d6b5bf56b6cd41571a871ed3556040eebf4c5567fe81685177c36ff7","downloaded_from":"2026-09-10T01:42:04.181Z","last_downloaded_at":"2026-09-10T01:42:04.181Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476101","source_sha256":"f8cc7f7c6be13b244a95ba6fd224d910dcc2679e60f06704f6ebffa239ea5204"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d8eac502d6b5bf56b6cd41571a871ed3556040eebf4c5567fe81685177c36ff7","downloaded_from":"2026-09-10T01:42:04.181Z","last_downloaded_at":"2026-09-10T01:42:04.181Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476101","source_sha256":"f8cc7f7c6be13b244a95ba6fd224d910dcc2679e60f06704f6ebffa239ea5204"}}