# ASC 818-30-05: Environmental Credits and Environmental Credit Obligations — Environmental Credit Obligations — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

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## ASC 818-30-05: 05 Overview and Background

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##### [818-30-05-1](https://asc.understandingaccounting.org/asc/818/30/#818-30-05-1)

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Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance:

[818-10-65-1](https://asc.understandingaccounting.org/asc/818/10/#818-10-65-1)This Subtopic addresses the accounting for an [environmental credit obligation](https://asc.understandingaccounting.org/glossary/e/#environmental-credit-obligation "(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."). Paragraph [818-30-55-1](https://asc.understandingaccounting.org/asc/818/30/#818-30-55-1) provides a flowchart of the recognition and measurement requirements of this Subtopic.