Trouble-entry accounting - revisited*

September 2007

Given the growing importance and impact of carbon abatement measures on financial reporting, PricewaterhouseCoopers (PwC), in conjunction with the International Emissions Trading Association (IETA), conducted in early 2007 a Europe-wide survey of the accounting approaches applied by major organisations which are significantly affected by the European Union Emissions Trading Scheme (EU ETS). The survey findings, initially summarised in Trouble-Entry Accounting* issued in May 2007, address the accounting for the EU ETS but also cover the accounting for Certified Emission Reductions (CERs), given the linkage to the EU ETS.Trouble-entry accounting - revisited* is an expanded version of the initial survey, and includes the following critical new areas:

• PwC view of the key accounting approaches for the EU ETS, with reference to worked examples.
• PwC view of the key accounting approaches for 'self generated' and purchased CERs.
• Greater quantitative analysis of the responses to the survey questions.