{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/818/20/#30-initial-measurement","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":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"818-20-30-1","para":"30-1","html":"<div class=\"asc-body\"><div class=\"div pending-text\" id=\"pgroup_qym_n12_y3c__GUID-4CEC9608-9A1F-463F-8F30-BDE9341A2E9A\"><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-F831F130-9C19-4473-A985-AD9FE7E4945D\"><span class=\"sfragment-source\">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> that is internally generated by an entity or received through a grant from a regulator or its designee(s) shall be initially measured at the transaction costs incurred, if any. See paragraph <a href=\"/asc/818/20/#818-20-55-5\" class=\"xref\">818-20-55-5</a> for implementation guidance on the application of this paragraph. </span></span></div></div>","snippet":"Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance:818-10-65-1An environmental credit that is internally generated by an entity or received through a grant from a regulator or its designee(s)…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a6ad2f27d75ee6091ae7f180b4dcd4a85b7ea32a4b0961e8ba12087bae42baff","downloaded_from":"2026-09-10T01:42:17.279Z","last_downloaded_at":"2026-09-10T01:42:17.279Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476119","source_sha256":"7a2b832a5f01f68497f775862a88b19377211f91f89ad7d43bd5e10ad94bf058"}},{"citation":"818-20-30-2","para":"30-2","html":"<div class=\"asc-body\"><div class=\"div pending-text\" id=\"pgroup_qym_n12_y3c__GUID-260B56A9-A1E9-4E37-9BED-5459A67BCDD3\"><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-37040886-EFA4-4006-91FE-6A577A780113\"><span class=\"sfragment-source\">Environmental credits other than those measured in accordance with paragraph <a href=\"/asc/818/20/#818-20-30-1\" class=\"xref\">818-20-30-1</a> that are obtained in a transaction initially measured in accordance with another Topic shall follow the requirements of that other Topic. See paragraph <a href=\"/asc/818/20/#818-20-55-6\" class=\"xref\">818-20-55-6</a> for implementation guidance on the application of this paragraph. </span></span></div></div>","snippet":"Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance:818-10-65-1Environmental credits other than those measured in accordance with paragraph 818-20-30-1 that are obtained in a transaction initi…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0a53f6bbd569379f637208e2be70c4d7f16692c47ce42c0649ea67389ff650bc","downloaded_from":"2026-09-10T01:42:17.279Z","last_downloaded_at":"2026-09-10T01:42:17.279Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476119","source_sha256":"7a2b832a5f01f68497f775862a88b19377211f91f89ad7d43bd5e10ad94bf058"}},{"citation":"818-20-30-3","para":"30-3","html":"<div class=\"asc-body\"><div class=\"div pending-text\" id=\"pgroup_qym_n12_y3c__GUID-2CC19BAE-E71A-4EEB-B0EA-B297F1249A8A\"><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-880477FF-C7E6-4CA6-B4CC-D133A3328881\"><span class=\"sfragment-source\">Environmental credits other than those measured in accordance with paragraph <a href=\"/asc/818/20/#818-20-30-1\" class=\"xref\">818-20-30-1</a> or <a href=\"/asc/818/20/#818-20-30-2\" class=\"xref\">818-20-30-2</a> shall be initially measured at cost in accordance with paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/805/50/#805-50-30-1\" class=\"xref\">805-50-30-1 through 30-4</a></div>. </span></span></div></div>","snippet":"Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance:818-10-65-1Environmental credits other than those measured in accordance with paragraph 818-20-30-1 or 818-20-30-2 shall be initially measur…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ee05863d565cee858adea8221885854de34d37c27eb9a6b80c9e68bc82759c2e","downloaded_from":"2026-09-10T01:42:17.279Z","last_downloaded_at":"2026-09-10T01:42:17.279Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476119","source_sha256":"7a2b832a5f01f68497f775862a88b19377211f91f89ad7d43bd5e10ad94bf058"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3b09c17c6da1d37e3103dc75c5bfe52814b19c87af463ac0a53202e22cca93fc","downloaded_from":"2026-09-10T01:42:17.279Z","last_downloaded_at":"2026-09-10T01:42:17.279Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476119","source_sha256":"7a2b832a5f01f68497f775862a88b19377211f91f89ad7d43bd5e10ad94bf058"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:104f17d3a88eae513ed05f5cd4fb7bdc76a77ec70b8261bfcce3dc41fe25b68e","downloaded_from":"2026-09-10T01:42:17.279Z","last_downloaded_at":"2026-09-10T01:42:17.279Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476119","source_sha256":"7a2b832a5f01f68497f775862a88b19377211f91f89ad7d43bd5e10ad94bf058"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:104f17d3a88eae513ed05f5cd4fb7bdc76a77ec70b8261bfcce3dc41fe25b68e","downloaded_from":"2026-09-10T01:42:17.279Z","last_downloaded_at":"2026-09-10T01:42:17.279Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476119","source_sha256":"7a2b832a5f01f68497f775862a88b19377211f91f89ad7d43bd5e10ad94bf058"}}