Pollutant pricing mechanisms

The question of how to account for pollutant pricing mechanisms is a topic that is attracting more and more attention, but there are no clearly defined accounting principles to cover it. The IASB added a project on this topic to a reserve list of two projects following its last agenda consultation. Recently, it discussed whether the time had come to activate that project or whether to defer it to the next agenda consultation; it decided on the latter. This article sets out the background to the IASB's decision, which many stakeholders may find disappointing.