# ASC 818-30-40: Environmental Credits and Environmental Credit Obligations — Environmental Credit Obligations — 40 Derecognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/818/30/#40-derecognition)

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## ASC 818-30-40: 40 Derecognition

[Read section](https://asc.understandingaccounting.org/asc/818/30/#40-derecognition)

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##### [818-30-40-1](https://asc.understandingaccounting.org/asc/818/30/#818-30-40-1)

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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)An entity shall derecognize 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.") liability in accordance with Subtopic 405-20 on extinguishments of liabilities.