FASB ASU Environmental Credits and Environmental Credit Obligations (Topic 818)
TXCPA’s Professional Standards Committee submitted comments to FASB on Environmental Credits (Topic 818), supporting guidance but raising concerns on liability recognition, fair value measurement, and balance sheet presentation.
The TXCPA Professional Standards Committee (PSC) recently submitted comments to the FASB regarding the proposed ASU on Environmental Credits and Environmental Credit Obligations (Topic 818). The PSC expressed general support for the issuance of authoritative guidance in this area. Key feedback included concerns about the method of liability recognition, a request for more guidance on fair value measurement in the absence of an active market, and agreement with separate balance sheet presentation of credits and obligations.
Read the full comment letter here. View TXCPA PSC comment letter here.
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