An asset helps us generate revenue and so a green asset produces revenue with the additional aspect of an ability to be renewable.  Solar energy would be a good example.

According to framework of accounting, asset could be defined as any thing which occured as a past event, control by the entity and future economic benefits should flow into the entity. To be an asset all three conditions should be fulfilled. If that asset is not polluting the environment , like irenewable things it could be identified as a green asset. Assets could be measured on two ways either cost model or fair value model (revaluation model). That could be applied to green asset as well....

Hello!

To contribute to the excellent contributions already placed, shipping basics, which I have used in class.

Greetings!

Environmental assets

Are all inputs already acquired, employees and made available by an institution in order to control the environmental impact, preserve and restore the environment. They are included in this criterion machinery, equipment and supplies used directly in the production process, used in the elimination of polluting waste or proper disposal of solid waste.

Environmental assets still add items consumed in the post-operation for cleaning the sites affected by pollutants or purify production wastes, such as water, gases and debris to be deposed in the natural environment in some way.

There are significant differences between environmental assets of various organizations, since the possible environmental damage and the prevention mode are different for each production process. In addition, environmental assets should be further classified between environmental inventories, fixed assets and permanent environmental deferred.

Dear John,

Perhaps the accounting standard IAS 41 on agriculture may be of interest for you: http://www.iasplus.com/en/standards/ias/ias41

The standard applies to biological assets (living animal or plant) and agriculture produce (harvested product from biological assets).

Paul

According to framework of accounting, asset could be defined as any thing which occured as a past event, control by the entity and future economic benefits should flow into the entity. To be an asset all three conditions should be fulfilled. If that asset is not polluting the environment , like irenewable things it could be identified as a green asset. Assets could be measured on two ways either cost model or fair value model (revaluation model). That could be applied to green asset as well..

Examples of “Green Assets”

• Solar = prepaid energy expenses

• Parks, Public Transit = fixed asset

• Clean Air = intangible asset

• Zero-, Low- Energy Home = tangible asset

• Energy-Efficient Equipment = lower operating expense