Urgent Issues Group (UIG) Interpretation 3 Emission Rights was issued by the Australian Accounting Standards Board (AASB) in March 2005. It was equivalent to IFRIC 3 of the same title issued by the International Accounting Standards Board (IASB) in December 2004.  
 
It addressed accounting for emission rights and similar schemes and required them to be recognised at fair value in accordance with the requirements of AASB 138 Intangible Assets. It was to be applicable for financial reporting periods ending on or after 28 February 2006. 
 
However, in June 2005 the IASB announced its intention to withdraw this IFRIC. This decision was supported by the AASB who announced the withdrawal of UIG Interpretation 3 Emission Rights in September 2005. 
 
The IASB decision was based on the progress on the development of the EU Emissions Trading Scheme whose initial development had been the driving force behind the development of the Interpretations. While the IASB said that the contents of the IFRIC were still an accurate interpretation of the IFRS literature, the Interpretation had been met with considerable opposition. The withdrawal of the IFRIC would allow the IASB to address the underlying accounting in a more comprehensive way as these schemes developed.  
 
The IASB’s work programme currently contains a project on emissions trading schemes which is to be carried out in conjunction with the Financial Accounting Standards Board (FASB). The IASB staff are expecting to table a report to the Board in mid-2008 identifying all the issues surrounding the project and requesting the Board to clarify the scope of the project it wishes to undertake. 
 
Related material 
Text of UIG Interpretation 3 Emission Rights (pdf) 
For further information visit the AASB and IASB websites.