Acarbonemissiontradingscheme(ETS)wasimplemented,effectivefrom1 January20X1.Participantsmustsubmitcarbonallowancestothe Government,basedontheamountofcarbonemittedduringtheyear.A carbon allowance can be used for a period of up to two years from the date of issue.Forexample,acarbonallowancethatwasissuedon1January20X1 can be used to settle obligations arising from emissions generated during the two-yearperiodended31December20X2.Obligationsarisingfrom emissions must be settled by the delivery of carbon allowances by 31 January ofthefollowingyear.Participantsinitiallyreceiveallowancesatnocostfrom thegovernment.Ifanentitydoesnothaveenoughallowancestosettleits obligation,additionalallowancesmaybepurchasedonthemarket.Excess allowances may be sold.

The following information relates to Carbs Ltd's involvement in the ETS:

1 January 20X1

Carbs Ltd receives 40,000 carbon allowances at no cost from the Government.

Each allowance can be used to pay for emission of one tonne of carbon.

The fair value of a carbon allowance was $20 at the time.

31 December 20X1

Carbs Ltd reported to the Government that it had emitted 25,000 tonnes of carbon during the year.

At that time, the fair value of a allowance was $30.

CarbsLtdaccountsforitsparticipationintheemissiontradingschemein accordancewiththeprinciplesofIFRIC3withoutrevaluationofallowances held.

Whichmethodprovidesmorerelevantinformationforusersoffinancial statements?Givereasonsforyouranswer.