Accounting Measurement of Carbon Credits in Brazil, China, and India

its population is characterized as Brazilian, Chinese, and Indian companies that presented financial information to external users through securities markets’ regulatory agencies in Brazil, China, and India and that implemented CDM projects during the 2005–2012 period, ranking in the “registered” status on the UNFCCC website. Quantitative data were obtaining to test the statistical hypothesis proposed in the study from information referring to the companies and CDM projects that made up the sample as follows: (i) the financial information referring to the equity (E) of companies that have their shares listed in the capital markets of Brazil, China, and India; and (ii) the emission reduction estimates of CDM projects, available from the UNFCCC website. The data collection, referring to the financial information of the companies that have made themselves available via regulatory bodies in the securities markets of the countries under study, was carried out through Thomson Reuters Eikon’s Electronic and Financial Database on July 30, 2013. Thus, when the data collection was carried out, financial information was obtained and converted into euros, referring to the equity (E) of 380 Brazilian companies, 2,584 Chinese companies, and 4,219 Indian companies, for the period under review. The collection of data concerning CDM projects with the status “registered” on the UNFCCC site, on the other hand, was carried out using the Bloomberg Economic and Financial Database on July 29, 2013, at which time a total of 289 projects registered by the Brazilian DNA, 3,651 projects registered by the Chinese DNA, and 1,296 projects registered by the Indian DNA were available for analysis for the 2005–2012 period. On November 18, 2004, just one project was registered by the Brazilian DNA, entitled “Brazil NovaGerar Landfill Gas to Energy Project” (UNFCCC, 2014). This project was eliminated from the research because of its set limits defined between 2005 and 2012, the first stage of the Kyoto Protocol. However, it was necessary to carry out new searches directly on the UNFCCC site for supplementary information that was crucial to implementing the research, given the fact that it did not include full descriptions concerning the names of the receiving agencies in each country (host party), in the Bloomberg Economic and Financial database, on the date mentioned above, information that was characterized as the only link between the CDM project database (Bloomberg) and the financial information database (Thomson Reuters Eikon). These searches were carried during the October 2013–May 2014 period. Subsequently, on September 1, 2014, new searches were carried out on the UNFCCC website to update the information referring to CDM projects registered by the agency during the 2005–2012 period. Thus, this research was carried out based on CDM projects located in the “registered” status section of the UNFCCC site over the 2005–2012 period, the records of which were finalized by the body prior to September 1, 2014, containing 299 projects registered by the DNA of Brazil, 3,682 projects registered by the DNA of China, and 1,371 projects registered by the DNA of India, adding up to 5,353 projects, that is, 74.69% of the total implemented projects in all the developing countries that ratified the Kyoto Protocol. To allow the measurement to be applied to the fair value of estimates of project emission reduction approved by the companies that make up the research sample, we obtained the interest rate EURIBOR – Euro Interbank Offered Rate (average annual rates) from the Bloomberg Financial and Economic Database on July 29, 2013 to adjust the future flows of economic benefits of CER estimates to the present value.