FASB published a proposed Accounting Standards Update (ASU) designed to improve the financial accounting for and disclosure of financial activities related to environmental credits and environmental credit obligations.
In a news release, FASB said the proposed ASU was in response to stakeholder feedback that GAAP doesn't provide authoritative guidance on how to recognize and measure the increasing volume of environmental credits spurred by government mandates and regulations related to emissions.
FASB encourages stakeholders to review and provide input on the proposed ASU by Tuesday, April 15. Read more.