[whzhangaa]

Hello, sir, thank you for your explanation on this question.

So whether to book the receipt of certificates to deferred income depends on whether the certificates relates to next period’s production or current period’s production, right?

But according to the question quoted below, it’s likely that the certificates relates to the current period’s production, and therefore there should no be liability related in the future.

“Coate obtains the certificates from the national government on satisfactory completion of an audit by an independent organisation, which confirms the origin of production. Coate then receives a certain number of green certificates from the national government depending on the volume of green electricity generated. The green certificates are allocated to Coate on a quarterly basis by the national government and Coate can trade the green certificates.”

[Author]

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