‘Revalued amount’ is defined as the assets’ fair value at the date of the revaluation less any subsequent accumulated amortisation and any subsequent accumulated impairment losses. If an entity measures intangible assets using the revaluation model, paragraph 85 of IAS 38 requires gains as a result of the revaluation to be recognised in other comprehensive income (‘OCI’) and accumulated in equity under the heading of ‘revaluation surplus’. Entities should note this difference in presentation for intangibles carried at a revalued amount versus carbon offsets included in inventory and carried at fair value through profit or loss if the broker-trader exemption is used.

Certain industries manage their business on a fair value basis and therefore may wish to provide additional fair value disclosures. If management decides to disclose separately the fair value, its financial impact (which will not have been included in net profit), or other management information regarding the carbon offsets outside the financial statements (a non-GAAP measurement), a reconciliation might be required (depending on local regulatory requirements) illustrating the differences between the IFRS balance and the non-GAAP measurement.