Analysis of Carbon Emission Accounting Practices of Leading Carbon Emitting European Union Companies

Ayaz, Haseeb

doi:10.30958/ajbe.3.4.5

Cited by 7 publications

(11 citation statements)

References 7 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The skepticism about the usefulness of the recognition of EA and GHG emissions [2,21] stemmed in financial reporting relatively neglected [22]. Previous descriptive studies [3,[11][12][13][14][15], identified a multitude of accounting practices for the EU ETS transactions. Those can be distinguished into two basic approaches: Gross approaches (as prescribed by the IFRIC 3 or government grant approach identified by Ernst and Young [23], and net approaches (as prescribed by U.S. Generally Accepted Accounting Principles (GAAP).…”

Section: Financial Reporting On Ea and Ghg Emissions-an Overviewmentioning

confidence: 99%

“…Figure 1 presents a diagram for the sample selection. The content analysis technique was used to evaluate the accounting policies of EA and GHG emissions disclosed in the financial statements [12][13][14][15]. Table 2 (panels A to C) describes the variables that were used as proxies for transparency of financial reporting on EA and GHG emissions.…”

Section: Sample and Datamentioning

confidence: 99%

“…Similarly, Warwick and Ng [13] found 11 bases of measurement for GHG emissions. Nevertheless, the most common bases are the cost and the carrying amount of the EA, as PWC and IETA [3] and Ayaz [15] also conclude. It may be related to the high frequencies of initial measurement for EA at market value.…”

Section: Univariate Analysismentioning

confidence: 99%

“…However, the history of the regulation of financial reporting regarding EA and GHG emissions has been marked by the consecutive postponements of the IASB 2 of 25 that is still without an answer for an explicit treatment. This lack of international guidance has been subjected to extensive criticism in the literature, and it is viewed as the main reason to the omission of accounting information on EA and GHG emissions in the financial reports [10][11][12][13][14][15]. Nevertheless, the full International Financial Reporting Standards (IFRS) presents general principles that may be applied.…”

Section: Introductionmentioning

confidence: 99%

“…This scenario of duality between the international and domestic standard setters created some discrepancies in the adopted accounting treatments. Previous literature [3,[11][12][13][14][15][16] identified different accounting policies, and even, the absence of disclosure. The purpose of the present study focuses that those practices may be compromising the transparency of financial reporting on EA and GHG emissions (not to discuss which accounting treatment is more suitable).…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Transparency of Financial Reporting on Greenhouse Gas Emission Allowances: The Influence of Regulation

Montero

Calderón

Dias

2020

IJERPH

View full text Add to dashboard Cite

This study focuses on the transparency of financial reporting on emission allowances (EA) and greenhouse gas (GHG) emissions within the European Union Emissions Trading Scheme (EU ETS). In particular, the different accounting treatments adopted by standard setters and professionals were analyzed to evaluate the influence of regulation in the transparency of financial reporting on EA and GHG emissions. Based on a sample of 85 companies registered with the Portuguese, Spanish, and French National Plans of Allocation (NPAs), data collected from the annual reports were analyzed for the 2008–2014 period. The results were obtained based on descriptive, logistic regressions and panel data statistical techniques, and they show that better levels of transparency of financial reporting on EA and GHG emissions are conditioned by a variety of accounting policies, which compromises the comparability of the financial information. The adoption of the International Accounting Standards Board (IASB) standards set lead to a greater dispersion in the choice of the accounting approach and a higher probability of not disclosing any information, as well as adopting off-balance sheet policies. Therefore, the regulatory factor is a determinant of the level of transparency of financial reporting on EA and GHG emissions, contributing to reduce strategies of omission.

show abstract

Section: Financial Reporting On Ea and Ghg Emissions-an Overviewmentioning

confidence: 99%

Section: Sample and Datamentioning

confidence: 99%

Section: Univariate Analysismentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Transparency of Financial Reporting on Greenhouse Gas Emission Allowances: The Influence of Regulation

Montero

Calderón

Dias

2020

IJERPH

View full text Add to dashboard Cite

show abstract

The effects of cognitive reflection and work experience on financial statement comparability under principles-based accounting standards

Barcellos,

Cardoso,

Leite

2023

Accounting Forum

View full text Add to dashboard Cite

Greenhouse Gas Emission Allowances: Financial Reporting Transparency

2022

View full text Add to dashboard Cite

This research analyzes the influence that the performance of GHG emissions has on the level of transparency in financial reporting. Content analysis of the financial statement notes allowed the level of transparency to be measured. The results suggest that the level of transparency in financial reporting is negatively related to the performance of GHG emissions when financial reports are prepared on the basis of the International Financial Reporting Standards. It was also concluded that more ‘good news’ is disclosed by companies when their GHG emissions’ performance reduces. This study complements previous literature about transparency in financial reporting, and the necessity to relate it to eco-efficiency measures to empower the decision-making process of stakeholders. The study also provides a reference for European accounting regulators on the behavior of companies with regard to this issue.

show abstract

Analysis of Carbon Emission Accounting Practices of Leading Carbon Emitting European Union Companies

Cited by 7 publications

References 7 publications

Transparency of Financial Reporting on Greenhouse Gas Emission Allowances: The Influence of Regulation

Transparency of Financial Reporting on Greenhouse Gas Emission Allowances: The Influence of Regulation

The effects of cognitive reflection and work experience on financial statement comparability under principles-based accounting standards

Greenhouse Gas Emission Allowances: Financial Reporting Transparency

Contact Info

Product

Resources

About