At 1 July 20X0 Energetic Ltd received ETAs for 5000 metric tonnes (MT) of CO2 at no cost from the government. The allowances expire after two years. Emissions for the year ended 30 June 20X1 were 5000 MT. The fair value of ETAs was $21 at 1 July 20X0 and $25 at 30 June 20X1.

a) Prepare all journal entries for the Energetic Ltds participation in the emission trading scheme for the year using the IFRIC model without revaluation.

b) Explain how a measurement mismatch, or inconsistency, can arise between assets and liabilities reported in the balance sheet under the cost model within IFRIC 3. Calculate the carrying amount of the ETA asset and Emission liability in the current case to illustrate your response.