Accounting and auditing of CO₂ emission quotas and their impacts on financial results

Abstract

The article explores the methods of reflecting quotas in financial statements in accordance with IFRS and their impact on the financial results of companies. It examines various approaches to assessing carbon obligations and analyzes the impact of quotas on the profitability of enterprises. Special attention is given to the challenges of accounting and auditing carbon assets and liabilities, as well as the risks associated with changes in climate policy. Aim: to study the methodological approaches to accounting for CO₂ emission quotas in accordance with international financial reporting standards, as well as to assess their impact on the financial results of companies.
A comprehensive approach in the study allowed not only the identification of current accounting practices, but also the assessment of their relevance in the context of tightening climate policy. The use of quantitative and qualitative methods ensures the reliability of the findings and the possibility of developing practical recommendations in this area. The results can be used to improve CO₂ accounting and audit systems, as well as to assess the financial risks associated with the transition to a low‐ carbon economy.
The study demonstrates a significant impact of the accounting and audit system for CO₂ emissions quotas on financial results. It has been established that the correct reflection of carbon obligations in IFRS‐compliant reporting minimises financial risks for investors. The results highlight the need to develop unified standards for quota audits and adapt accounting practices to the increasing environmental regulations.