1. bookVolume 30 (2022): Edizione 2 (June 2022)
Dettagli della rivista
License
Formato
Rivista
eISSN
2450-5781
Prima pubblicazione
30 Mar 2017
Frequenza di pubblicazione
4 volte all'anno
Lingue
Inglese
access type Accesso libero

Assesment of the Quality of Reporting Information on CO2 Emission Rights on the Example of Energy Sector Groups Listed on the Warsaw Stock Exchange

Pubblicato online: 19 May 2022
Volume & Edizione: Volume 30 (2022) - Edizione 2 (June 2022)
Pagine: 116 - 129
Ricevuto: 01 Dec 2021
Accettato: 01 Apr 2022
Dettagli della rivista
License
Formato
Rivista
eISSN
2450-5781
Prima pubblicazione
30 Mar 2017
Frequenza di pubblicazione
4 volte all'anno
Lingue
Inglese
Abstract

Poland is a participant to the European Union Emissions Trading System, which aims at reducing greenhouse gas emissions. Trading CO2 emission rights has become a strategic area from the point of view of managing entities that emit CO2. The aim of the paper is to investigate and identify discrepancies in the presentation and valuation of CO2 emission allowances, CO2 emission provision liabilities in reporting, and to assess the impact of these discrepancies on compliance with the true and fair view principle on top of the informative value of the financial statements. An in-depth qualitative analysis was used to examine disclosures of CO2 emission rights in the 2020 consolidated financial statements coming from the largest energy sector groups listed in the WIG Energy Index of the Warsaw Stock Exchange in light of the relevant legal acts and literature. As a result of the research conducted, it was confirmed that groups of companies carry out a range of CO2 emission rights balance classification and valuation. There were also significant discrepancies in the disclosure of information about the creation and valuation of provisions for liabilities due to CO2 emissions. The discrepancies observed in the audited entities’ balance-sheet presentations and valuation of the acquired CO2 emission allowances and reserves resulting from IAS/IFRS in practice distorts the comparability of data presented in the financial statements. The research also revealed differences in scope of disclosed information, as well as its fragmentary nature. As a result, the comparison of data between groups in the energy sector in terms of their assets is impossible. Our study fills a research gap on the effects of using IFRS for the presentation and valuation of CO2 emission rights in the Polish energy sector and the impact of a differentiated approach to disclosures on the true and fair view conception in financial reporting.

Keywords

[1] B. Caramanolis-Çötelli, L. Gardiol, R. Gibson-Asner, N.S. Tuchschmid, “Are Investors Sensitive to the Quality and the Disclosure of Financial Statements?” Review of Finance, Vol. 3(2), pp. 131-159, 1999. https://doi.org/10.1023/A:100985540405710.1023/A:1009855404057 Search in Google Scholar

[2] Deloitte, Enhancing the quality of IFRS financial statements, https://www.iasplus.com/en/binary/ca/1010caifrsquality.pdf [Feb. 8, 2022] Search in Google Scholar

[3] D. Alexander, E. Jermakowicz, “A True and Fair View of the Principles/Rules Debate”, Abacus, vol. 42(2), pp. 132-164, 2006. Available: https://doi.org/10.1111/j.1467-6281.2006.00195.x [Feb. 8, 2022]10.1111/j.1467-6281.2006.00195.x Search in Google Scholar

[4] C. Nobes, “Is True and Fair of Overriding importance? A Comment on Alexander’s Benchmark, Accounting and Business Research, vol. 30(4), pp. 307-312, 2000.10.1080/00014788.2000.9728948 Search in Google Scholar

[5] A. Piechocka-Kałużna, “The evolution of the importance of the true and fair view (TFV) principle. The case of Poland”, Financial Sciences, vol.23, no.4, pp. 89-101, 2018.10.15611/fins.2018.4.06 Search in Google Scholar

[6] J. Christensen, Conceptual frameworks of accounting from information perspective”, Accounting and Business Research, Vol. 40 No. 3, pp. 287-299, 2010. Available: doi: 10.1080/00014788.2010.9663403; [Feb. 8, 2022] Search in Google Scholar

[7] M. Egan, W.Y. Xu, “The True and Fair View: Exploring how Managers, Directors and Auditors Engage in Practice”, Accounting Forum, Vol. 44 No. 4, pp. 398-420, 2020. https://doi.org/10.1080/01559982.2020.1727177 [Feb. 8, 2022]10.1080/01559982.2020.1727177 Search in Google Scholar

[8] EU Emissions Trading System (EU ETS), Available: https://ec.europa.eu/clima/eu-action/eu-emissions-trading-system-eu-ets_en, [Dec. 12, 2021] Search in Google Scholar

[9] The European Parliament and the Council of the European Union, Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Community, in respect of the Kyoto Protocol’s project mechanisms, Available: https://eur-lex.europa.eu/legal-content/PL/TXT/HTML/?uri=CELEX:02003L0087-20200101&qid=1622445232241&from=EN [Dec. 12, 2021] Search in Google Scholar

[10] United Nations Environment Programme (UNEP), The Emissions Gap Report 2021: The Heat Is On A world of climate promises not yet delivered, 2021, Available: https://www.unep.org/resources/emissions-gap-report-2021, [Dec. 12, 2021] Search in Google Scholar

[11] http://www.globalcarbonatlas.org/en/CO2-emissions [Dec. 12, 2021] Search in Google Scholar

[12] https://handel-emisjami-co2.cire.pl/ [Dec. 12, 2021] Search in Google Scholar

[13] The European Securities and Markets Authority, Preliminary report. Emission Allowances and derivatives thereof, Paris 2021, Available: https://www.esma.europa.eu/sites/default/files/library/esma70-445-7_preliminary_report_on_emission_allowances.pdf [Dec. 12, 2021] Search in Google Scholar

[14] A. Sulik-Górecka, Z. Korban, “Cost of Mining Coal as an Element of Multi-Criteria Assessment Using the Development Measure – A Case Study”, Management Systems in Production Engineering, vol. 26 (3), pp. 162-167, 2018, doi: 10.1515/mspe-2018-0026. Available: https://sciendo.com/pdf/10.1515/mspe-2018-0026 [Dec. 12, 2021] Search in Google Scholar

[15] E.W. Maruszewska, M. Strojek-Filus, Z. Drabkova, “Information about cost of goods produced and its usefulness for production engineers. A case of SME”, Management Systems in Production Engineering, vol. 25(4), pp. 267-272, 2017. Available: https://sciendo.com/downloadpdf/journals/mspe/25/4/article-p267.xml [Dec. 12, 2021]10.1515/mspe-2017-0039 Search in Google Scholar

[16] The IFRS Foundation, International Accounting Standards/International Financial Reporting Standards (IAS/IFRS), Available: https://www.ifrs.org/issued-standards/list-of-standards/ [Dec. 12, 2021] Search in Google Scholar

[17] Historical CO2 emissions in Europe 1750-2019 by selected country, Available: https://www.statista.com/statistics/1224521/cumulative-co2-emissions-europe-historical] [Dec. 12, 2021] Search in Google Scholar

[18] Emisja CO2 – Polska na tle Europy i Świata”, 2021, Available: https://www.cire.pl/artykuly/inwestycje-w-energetyce-materialy-problemowe/303106-emisja-co2---polskana-tle-europy-i-swiata Search in Google Scholar

[19] Najwięksi emitenci dwutlenku węgla w UE, 2021, Available: https://www.cire.pl/artykuly/serwis-informacyjnycire-24/183112-najwieksi-emitenci-dwutlenku-wegla-wue-ranking] [Dec. 12, 2021] Search in Google Scholar

[20] https://handel-emisjami-co2.cire.pl/artykuly/serwis-informacyjny-cire-24/tauron-pokazal-ze-polacy-moga-zarobic-na-prawach-do-emisji-co2 [Dec. 12, 2021] Search in Google Scholar

[21] [https://handel-emisjami-co2.cire.pl/artykuly/serwis-informacyjny-cire-24/przedstawiciel-ke-po-2026-r-mozliwestopniowe-odchodzenie-od-darmowych-uprawnie-doemisji-co2 [Dec. 12, 2021] Search in Google Scholar

[22] International Accounting Standards Board (IASB): “IAS Plus IFRIC 3 Emission Rights (withdrawn)”, Available: https://www.iasplus.com/en/standards/ifric/ifric3 [Dec. 12, 2021] Search in Google Scholar

[23] European Financial Reporting Advisory Group (EFRAG), IFRIC – Emission Rights. Final Endorsement Advice Available, 5.05.2005, https://www.efrag.org/Assets/Download?assetUrl=%2Fsites%2Fwebpublishing%2FProject%20Documents%2F22%2FFinal%20Endorsement%20Advice.pdf [Dec. 12, 2021] Search in Google Scholar

[24] A. Kuzior, „Ujawnienia informacji na temat rezerw w sprawozdaniach finansowych wybranych spółek giełdowych”, Zeszyty Naukowe Uniwersytetu Szczecińskiego, Finanse, Rynki Finansowe, Ubezpieczenia vol. 2(80), pp. 457-464, 2016.10.18276/frfu.2016.2.80/2-48 Search in Google Scholar

[25] Uchwała Nr 8/2015 Komitetu Standardów Rachunkowości z 8 grudnia 2015 r. w sprawie przyjęcia znowelizowanego stanowiska Komitetu w sprawie księgowego ujęcia uprawnień do emisji gazów cieplarnianych, Dz. U. Nr 140, poz. 1580, z późn. zm]. Available: https://www.gov.pl/web/finanse/stanowiska-komitetu [Dec. 12, 2021] Search in Google Scholar

[26] D.J. Wuebbles, D.W. Fahey, K.A. Hibbard, D.J. Dokken, B.C. Stewart, T.K. Maycock USGCRP, Climate Science Special Report: Fourth National Climate Assessment, Volume I, U.S. Global Change Research Program, Washington, DC, USA, 2017, doi: 10.7930/J0J964J6. Available: https://science2017.globalchange.gov/, (https://climate.nasa.gov/evidence/ [Dec. 12, 2021] Search in Google Scholar

[27] United Nations Framework Convention on Climate Change, 9.05.1992, Dz. U. 1996 nr 53 poz. 238, Available: http://isap.sejm.gov.pl/isap.nsf/DocDetails.xsp?id=WDU19960530238 [Dec. 12, 2021] Search in Google Scholar

[28] U. Luboińską U., Wybrane zagadnienia dotyczące emisji CO2 w Polsce, Warszawa 2020, Available: https://www.senat.gov.pl/gfx/seńnat/pl/senatopracowania/192/plik/ot-683.pdf [Dec. 12, 2021] Search in Google Scholar

[29] The National Centre for Emissions Management., Krajowy raport inwentaryzacyjny 2018 Inwentaryzacja gazów cieplarnianych w Polsce dla lat 1988-2016, Raport syntetyczny wykonany na potrzeby Ramowej konwencji Narodów Zjednoczonych w sprawie zmian klimatu oraz Protokołu z Kioto, 2018, Available: https://www.kobize.pl/uploads/materialy/materialy_do_pobrania/krajowa_inwentaryzacja_emisji/NIR_2018_raport_syntetyczny_PL.pdf [Dec. 12, 2021] Search in Google Scholar

[30] B. Giner, “Accounting for emission trading schemes: a still open debate”, Social and Environmental Accountability Journal, t. 4(1), pp. 45-51, 2014. https://doi.org/10.1080/0969160X.2014.88567010.1080/0969160X.2014.885670 Search in Google Scholar

[31] A. Łakomiak, „Prawa do emisji gazów cieplarnianych I innych substancji w kontekście stanowiska Komitetu Stan-dardów Rachunkowości”, Rynek Energii, Feb., 2007. Available: https://www.cire.pl/pliki/2/prawadoemisji.pdf [Dec. 12, 2021] Search in Google Scholar

[32] https://businessinsider.com.pl/finanse/nowy-rekord-cenpraw-do-emisji-co2-sprawdzamy-ile-podrozeje-prad-i-jakwplynie-to-na/t1klgw2 [Dec. 12, 2021] Search in Google Scholar

[33] C. Erb, Ch. Pelger, „Twisting words”? A study of the construction and reconstruction of reliability in financial reporting standard-setting”, Accounting Organization and Society, Vol. 40, pp. 13-40, 2015. Available: https://daneshyari.com/article/preview/878559.pdf [Dec. 12, 2021]10.1016/j.aos.2014.11.001 Search in Google Scholar

[34] D. Flint D., A true and fair view in company accounts. United Kingdom, Gee & Co (Publisher), 1982 Search in Google Scholar

[35] K. van Hulle, “The True and Fair Override in the European Accounting Directives”, European Accounting Review, vol. 6, no. 4. 1997.10.1080/09638189700000012 Search in Google Scholar

[36] E.W. Maruszewska, A. Szewieczek, M. Strojek-Filus, „Truth, faithfulness and reliability vagueness in the accounting theory as a challenge for accounting teachers”. Problems of Education in the 21st Century, vol. 68, pp. 36-51, 2015. Available:. http://oaji.net/articles/2016/457-1452585637.pdf [Dec. 12, 2021] Search in Google Scholar

[37] J. Cotter, M. Najah, S.S. Wang, “Standardized reporting of climate change information in Australia”, Sustainability Accounting, Management and Policy Journal, vol. 2 no. 2, pp. 294-321, 2011. Available: https://eprints.usq.edu.au/20143/ [Dec. 12, 2021]10.1108/20408021111185420 Search in Google Scholar

[38] M. Haigh, M. A.. Shapiro, “Carbon reporting: does it matter?”, Accounting, Auditing & Accountability Journal, Vol. 25 No. 1, pp. 105-125, 2012. Available: https://www.emerald.com/insight/content/doi/10.1108/09513571211191761/full/html [Dec. 12, 2021] Search in Google Scholar

[39] T. Mizuguchi, “The need for standardised disclosure on climate-risk in financial reports: implications of the JICPA reports”, Environmental Accounting for Cleaner Production, Eco-Efficiency in Industry and Science, Springer, Dordrecht, vol. 24, pp. 353-364, 2008, Available https://doi.org/10.1007/978-1-4020-8913-8_19 [Dec. 12, 2021]10.1007/978-1-4020-8913-8_19 Search in Google Scholar

[40] S. Rathee, S. Kapil, “An investigation into recent trends and challenges of accounting ‘climate instruments’”, Journal of Services Research, vol. 15 (1) Issue 1, pp. 7-32, 2015. Available: https://web.s.ebscohost.com [Dec. 12, 2021] Search in Google Scholar

[41] A. Reizinger-Ducsai, “Accounting for emission rights”, Social and Management Sciences, Periodica Polytechnica, vol. 15/2 pp. 53-57, 2007. doi: 10.3311/pp.so.2007-2.02, Available: http://www.pp.bme.hu/so [Dec. 12, 2021] Search in Google Scholar

[42] E. Günther, “Accounting for emission rights, Emissions Trading and Business, pp. 219-239, 2006. Available: https://link.springer.com/chapter/10.1007/3-7908-1748-1_16 [Dec. 12, 2021]10.1007/3-7908-1748-1_16 Search in Google Scholar

[43] P.A. Griffin, “Cap-and-trade emission allowances and US companies’ balance sheets”, Sustainability Accounting, Management and Policy Journal, Vol. 4 No. 1, pp. 7-31, 2013. Available: https://www.emerald.com/insight/content/doi/10.1108/SAMPJ-01-2012-0001/full/html?skip-Tracking=true [Dec. 12, 2021]10.1108/SAMPJ-01-2012-0001 Search in Google Scholar

[44] R. Aggarwal, S. Dow. “Greenhouse Gas Emissions Mitigation and Firm Value: A Study of Large North-American and European Firms”, Midwest Finance Association 2012 Annual Meetings Paper, 2012. Available: https://ssrn.com/abstract=1929453, http://dx.doi.org/10.2139/ssrn.1929453 [Dec. 12, 2021]10.2139/ssrn.1929453 Search in Google Scholar

[45] L. Chapple, P. Clarkson, D. Gold, “The Cost of Carbon: Capital Market Effects of the Proposed Emission Trading Scheme (ETS)”. Abacus, 2011. Available: SSRN: https://ssrn.com/abstract=1526895, [Dec. 12, 2021] Search in Google Scholar

[46] N. Garcia-Torea, S. Giordano-Spring, C. Larrinaga, G. Rivière-Giordano, “Accounting for Carbon Emission Allowances: An Empirical Analysis in the EU ETS Phase 3”, Social and Environmental Accountability Journal, DOI: 10.1080/0969160X.2021.2012496, Available: https://www.tandfonline.com/doi/full/10.1080/0969160X.2021.2012496?scroll=top&needAccess=true [Dec. 12, 2021] Search in Google Scholar

[47] E.M. Matsumura, R. Prakash, S.C. Vera-Munoz, “Firm-Value Effects of Carbon Emissions and Carbon Disclosures”, THE ACCOUNTING REVIEW, Vol. 89, No. 2, pp. 695-724, DOI: 10.2308/accr-50629, Available: https://lcerc.jnu.edu.cn/_upload/article/files/07/08/011d4c8b4fdb8759e7d9f76733e0/ada3cbb0-4a3a-4c66-98a3-9856e4c48988.pdf [Dec. 12, 2021] Search in Google Scholar

[48] Ch. Saka, T. Oshika, “Disclosure effects, carbon emissions and corporate value”, Sustainability Accounting, Management and Policy Journal, Vol. 5 No. 1, pp. 22-45, 2014, doi: 10.1108/SAMPJ-09-2012-0030. Available: https://www.emerald.com/insight/content/doi/10.1108/SAMPJ-09-2012-0030/full/html [Dec. 12, 2021] Search in Google Scholar

[49] M.P. Montenero, E.P. Calderón, A.I.L. Dias, “Transparency of Financial Reporting on Greenhouse Gas Emission Allowances: The Influence of Regulation”. International Journal of Environmental Research and Public Health. vol. 17(3), pp. 893. 2020. Available: https://doi.org/10.3390/ijerph17030893 [Dec. 12, 2021]10.3390/ijerph17030893703769432023942 Search in Google Scholar

[50] J. Horák, O. Malíková, “Environmentally related impacts on financial reporting: the case of pollution permits in Czech legislative conditions”, WIT Transactions on Ecology and the Environment, vol. 147, pp. 433-442, 2011. Available: https://www.witpress.com/Secure/elibrary/papers/AIR11/AIR11040FU1.pdf [Dec. 12, 2021] Search in Google Scholar

[51] H. Buk, „Prezentacja w sprawozdaniu finansowym praw do emisji gazów cieplarnianych na przykładzie spółek branży paliwowo-energetyczne”, Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu. Branżowe problem rachunkowości i podatków Vol. 373, pp.11-22, 2014.10.15611/pn.2014.373.01 Search in Google Scholar

[52] R. Tušan, “Comparison of Slovak accounting regulation and international financial reporting standards in the area of accounting and recognition of emission rights”, 14th GeoConference on Ecology, Economics, Education and Legislation, pp. 1-8, 2014; Available: https://www.researchgate.net/publication/301470908_COMPARISON_OF_SLOVAK_ACCOUNTING_REGULATION_AND_INTERNATIONAL_FINANCIAL_REPORTING_STANDARDS_IN_THE_AREA_OF_ACCOUNTING_AND_RECOGNITION_OF_EMISSION_RIGHTS [Dec. 12, 2021]10.5593/SGEM2014/B53/S21.013 Search in Google Scholar

[53] K.M. Eisenhardt, “Building theories from case study research” Academy of Management Review, Vol.14(4), pp. 532-550, 1989. http://www.jstor.org/stable/10.2307/258557 [Feb. 8, 2022]10.5465/amr.1989.4308385 Search in Google Scholar

[54] Europe Beyond Coal: European Coal Plant Database, 22 Nov 2021, Available: https://beyond-coal.eu/database/ [Dec. 12, 2021] Search in Google Scholar

Articoli consigliati da Trend MD

Pianifica la tua conferenza remota con Sciendo