{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/818/20/#45-other-presentation-matters","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":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":"Balance Sheet","paragraphs":[{"citation":"818-20-45-1","para":"45-1","html":"<div class=\"asc-body\"><div class=\"div pending-text\" id=\"pgroup_d263e28__GUID-23F178B7-64DF-4654-B21B-C297182FA2F3\"><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-A6634055-0E49-47CE-9550-115B30AB7870\"><span class=\"sfragment-source\">An entity that presents a classified balance sheet shall classify <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 credits</span></a> reasonably expected to be transferred 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, used in a <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>, or remitted to a regulator within one year (or the <a href=\"/glossary/o/#operating-cycle\" class=\"term\" title=\"The average time intervening between the acquisition of materials or services and the final cash realization constitutes an operating cycle.\"><span>operating cycle</span></a> of the business, if longer) as current assets. All other environmental credits shall be classified as noncurrent assets. </span></span></div></div>","snippet":"Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance:818-10-65-1An entity that presents a classified balance sheet shall classify environmental credits reasonably expected to be transferred in …","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:af94d5749790712079c516658a0064d9d285e0184a71c28dd7dbbeb3105bd063","downloaded_from":"2026-09-10T01:42:25.246Z","last_downloaded_at":"2026-09-10T01:42:25.246Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476106","source_sha256":"fae170653d4db88150d853b3b6596520cea4c4ec0c4ebdb2560ee437673d7a04"}},{"citation":"818-20-45-2","para":"45-2","html":"<div class=\"asc-body\"><div class=\"div pending-text\" id=\"pgroup_d263e28__GUID-7633B6FD-B26F-4494-A6DD-B1DAE581973A\"><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-C8A26B26-3294-4B78-9B3C-CEBE71CC0E42\"><span class=\"sfragment-source\">An entity shall present <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 credits</span></a> separately from any related <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> liabilities recognized in accordance with Subtopic <a altsource=\"GUID-1123369D-4758-46FD-A87A-CC337D8091E0.ditamap\" class=\"ditamap\">818-30</a> on its balance sheet. </span></span></div></div>","snippet":"Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance:818-10-65-1An entity shall present compliance environmental credits separately from any related environmental credit obligation liabilities …","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:06e5b8c38c5266d1681fd99d5365a90f0abac7172fa50ba7d863fabad9d5d9e5","downloaded_from":"2026-09-10T01:42:25.246Z","last_downloaded_at":"2026-09-10T01:42:25.246Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476106","source_sha256":"fae170653d4db88150d853b3b6596520cea4c4ec0c4ebdb2560ee437673d7a04"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b52f91bb234a74b4dfa82d6f83b314f7b41aa58e839b429d1889d23d7ad68450","downloaded_from":"2026-09-10T01:42:25.246Z","last_downloaded_at":"2026-09-10T01:42:25.246Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476106","source_sha256":"fae170653d4db88150d853b3b6596520cea4c4ec0c4ebdb2560ee437673d7a04"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5bfabd9335a0580199f6b63524554811a68504059075dc2ed60d19b6ad8854b3","downloaded_from":"2026-09-10T01:42:25.246Z","last_downloaded_at":"2026-09-10T01:42:25.246Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476106","source_sha256":"fae170653d4db88150d853b3b6596520cea4c4ec0c4ebdb2560ee437673d7a04"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5bfabd9335a0580199f6b63524554811a68504059075dc2ed60d19b6ad8854b3","downloaded_from":"2026-09-10T01:42:25.246Z","last_downloaded_at":"2026-09-10T01:42:25.246Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147476106","source_sha256":"fae170653d4db88150d853b3b6596520cea4c4ec0c4ebdb2560ee437673d7a04"}}