Why should granted emission allowance be measured at fair value?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Why should granted emission allowance be measured at fair value?
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The emission allowance is a special type of allowance that companies get from the government. This emission gives an allowance to the company to emit a fixed amount of the pollutant from a source. This allowance includes the credits to the company. The company also sold these allowances to other companies if a company fail to use these credits then that company also get monetary benefits from the company. The main aim of this allowance to reduce the emission of the carbon in air.
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