Globally consistent accounting standards urged for carbon-related instruments
The research, titled Reality of accounting for carbon-related instruments, reviewed 300 companies in high-emitting sectors and found significant inconsistencies in how these instruments are treated in corporate financial reports.
Currently, there is no dedicated IFRS Accounting Standard for carbon-related instruments, leading companies to create their own accounting policies.
According to Professor Ioannis Tsalavoutas from the University of Glasgow, this discretion results in a lack of transparency and comparability, with inconsistent terminology and methodologies undermining confidence in sustainability claims.
To address this gap, ACCA and the University recommend developing a globally applicable accounting standard. This would guide companies on defining the scope, recognition, measurement, and disclosure of carbon-related instruments, ensuring faithful representation of their financial and environmental impact. They also suggest adopting a unified term—'carbon-related instruments'—to promote harmonized communication across markets.
ACCA has supplemented the report with two practical articles offering insights for decision-makers and finance teams, including workflows based on current IFRS standards and the broader implications for ESG reporting, tax risk, and reputation.
Aaron Saw, Head of corporate reporting insights, at ACCA, emphasized that quality information on these instruments is vital for stakeholders. ACCA calls on regulators, standard-setters, and finance professionals to engage with the findings, to build a more transparent and trustworthy carbon market.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
20 minutes ago
- Business Recorder
Construction of Gwadar Shipyard: Dar for third-party evaluation of potential sites
ISLAMABAD: The Deputy Prime Minister, Ishaq Dar has directed the authorities concerned to undertake a third-party professional evaluation of potential sites for the construction of Gwadar Shipyard. Deputy Prime Minister/Foreign Minister, Senator Mohammad Ishaq Dar, chaired a high-level meeting on land allocation for Gwadar Shipyard. Ministry of Defence Production presented relevant statistics, potential revenue streams and various land options available for the project of Gwadar Shipyard. He further assured local representatives that the shipyard's development would proceed with local consensus. The meeting was attended by the Chief Minister of Balochistan, Federal Ministers for Defence Production, Planning and Development, Maritime Affairs, SAPM Tariq Bajwa, Secretary MoMA, MPA Hidayatullah, and Chairman Gwadar Port Authority. Copyright Business Recorder, 2025
Business Recorder
20 minutes ago
- Business Recorder
CJP for developing judicial infrastructure under citizen-centric approach
ISLAMABAD: Chief Justice of Pakistan (CJP) Yahya Afridi emphasised that the development of judicial infrastructure must follow a citizen-centric approach. He called for the inclusion of a modern Facilitation Centre within the Judicial Complex to assist litigants and the public at large, ensuring improved access to information and services focused on facilitating litigants, lawyers, and the general public. He, along with Sindh High Court (SHC) Chief Justice Junaid Ghaffar, and the SHC judges – Justice Zafar Rajput and Justice Iqbal Kalhoro, met with the District and Sessions Judges of the Karachi Division at the SHC building on Monday. During the interaction, the SHC CJ apprised the CJP Afridi regarding the proposed construction of a state-of-the-art Judicial Complex in Karachi, comprising 125 fully equipped courts along with all requisite amenities. The project is intended to address the growing needs of the judicial system in the port city and is expected to commence shortly. The CJP welcomed the initiative and underscored the importance of sustainable, scalable, and forward-looking infrastructure planning. He stressed that future forecasting must be integrated into the design to ensure the long-term viability of the complex. In this regard, he recommended that structured consultations be held with all relevant stakeholders—including judges and members of the district bar—to gather practical input keeping in view the technicalities so that a refined proposal may be placed before the government for timely execution. The visit reaffirmed the judiciary's commitment to institutional development, participatory planning, and the delivery of accessible and efficient justice. Copyright Business Recorder, 2025
Business Recorder
20 minutes ago
- Business Recorder
TOMCL enters new market in Tajikistan
KARACHI: The Organic Meat Company Limited (TOMCL) has announced a significant expansion of its international market presence with its entry into Tajikistan, a new market within the Commonwealth of Independent States (CIS) region. The company has secured confirmed export orders for frozen boneless beef valued at $3.24 million, which are to be fulfilled over the current financial year. This move marks a strategic breakthrough for TOMCL, solidifying its position as a major Halal meat exporter from Pakistan and continuing its expansion into high-potential emerging markets. The company has already started production and exports of the frozen boneless beef, which has been specifically tailored to meet Tajikistan's import regulations and standards. TOMCL's latest success builds upon its previous export ventures into the CIS region, which include Azerbaijan and Uzbekistan. The company highlights several key factors contributing to this milestone, including a growing demand for Pakistani Halal meat in untapped Eurasian markets and strong customer confidence in TOMCL's quality and logistics capabilities. This also diversifies the company's export portfolio beyond the GCC, ASEAN, and MENA regions. According to the company, this development will help support Pakistan's national agenda for export diversification, generate positive foreign exchange inflows, and strengthen the country's footprint in non-traditional meat export markets. TOMCL's management stated its commitment to further expanding its Halal meat export base across Central Asia, the CIS, and Eastern Europe. Copyright Business Recorder, 2025
