accounting
... to buy equivalent quantities of emissions per ton of equivalent CO2, from other companies, or to pay penalty accordingly to the directive. In the contrary, companies, which have installing more friendly environmental technologies, may have fewer realized emissions than their allocated rights, and so could sell their surplus emission rights to companies with a correspondent deficit. Due to the above obligations and practices, the importance of recording and clearing up of the accounting problems that are related with the first application of this directive, becomes obvious. This paper makes an attempt and describing, a concise theoretical approach and a practical illustration of accounting issues and problems upon the application of this directive. It is mentioned that the companies of the Member States shall prepare their financial statements in conformity with the International Accounting Standards adopted at the European level, from the 1st of January 2005. Keys Words: Financial Accounting, International Accounting Standards, Accounting Standardization In compliance with the European Directive n° 87/2003(July 2003) on Greenhouse Gas Emissions Trading Rights within the European Community, all the Member States shall prepare, before January 1st, 2005, a National Programme of Gas Emissions Trading Rights allocation in specific industries of their countries. The system Of Gas Emissions Trading Rights, is obligatory under the Kyoto Protocol to the United Nations Framework Convention on Climate Change, and helps the Community and its Member States in fulfilling their emission reduction targets in a cost-effective way. An initial three-year period 2005-2007 is foreseen. The rights, which have a unique price in all European Community, and would be transferred from country to country, are marketable. In the end of the year, companies of which the allocated rights, are fewer than their realized emissions, are obliged to buy equivalent quantities of emissions per ton of equivalent CO2, fr...