COP · 10-Q · 2026Q2 · Full report
Environmental Credit Accounting
CONOCOPHILLIPS · 2026-08-06 · Importance 44 · Surprise 60 · In source text
In May 2026, the FASB issued ASU No. 2026-02, Accounting for Environmental Credit Programs. The standard establishes recognition, measurement, presentation and disclosure requirements for entities that generate, purchase or receive environmental credits or have regulatory compliance obligations that may be settled with environmental credits, including renewable energy and carbon offset credits. It applies retrospectively through a cumulative-effect adjustment to opening retained earnings, becomes effective for annual periods beginning after December 15, 2027 and interim periods within those annual periods, and allows early adoption; ConocoPhillips is evaluating the impact.
Key facts
- ASU No. 2026-02 (Accounting for Environmental Credit Programs) is effective for annual reporting periods beginning after December 15, 2027, will be applied retrospectively, and ConocoPhillips is currently evaluating the impact of adoption. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | unclear | contingent | — | ASU No. 2026-02 (Accounting for Environmental Credit Programs) is effective for annual reporting periods beginning after December 15,… |