Reporting practices on fossil fuel reserves

James Leaton, research director at Carbon Tracker

James Leaton introduces the joint ACCA – Carbon Tracker research paper, Carbon avoidance? Accounting for the Emissions Hidden in Reserves.

His presentation explores what a changing energy system might mean for how the reserves of coal, oil and gas are treated in financial accounting. This work feeds into a growing debate around the potential for stranded assets, which are assets that may not be able to provide the revenues the market assumes they will.

 

 

Richard Martin, head of corporate reporting at ACCA,

Richard Martin explains how the issue of unburnable carbon might be reflected in a company’s financial statements.

His presentation explores how companies currently reflect fossil fuel reserves in their financial statements; IASB efforts to develop new methods to account for reserves and the challenges around such activities; and the standards and tools that accountants have to revalue stranded assets.    

 

Related report

Carbon avoidance? Accounting for the emissions hidden in reserves