Tasle Ltd $($Tasle$)$ is a multi$-$national steel manufacturing company listed on the JSE Limited. The senior financial manager of Tasle saw an article in one of the local newspapers about Kyoto Protocol agreement. Below is the part of the extract from the article.

"The Kyoto Protocol is an international agreement linked to the United Nations Framework Convention on Climate Change. The major feature of the Kyoto Protocol is that it sets binding targets for $37$ industrialised countries and the European community for reducing greenhouse gas $($GHG$)$ emissions. Companies in countries subject to the Kyoto Protocol aim to achieve their GHG emission reduction targets by acquiring certified emission reduction $($CER$)$ certificates from companies based in developing countries, such as South Africa. These certificates appear to be in high demands in these developing countries."

As a result, the senior financial manager presented the article to the board during a board meeting held on the $1$ March $2021.$ The board approved Tasle to undergo a GHG assessment as part of its carbon offsetting strategy. Tasle has always been very conscious of its contributions to a 'greener' environment through the development of alternative projects such as solar and wind energy. Tasle wants to take advantage of the Kyoto Protocol's potential economic and environmental benefits relating to its environmentally friendly projects, and especially the trade in CER certificates to the companies in developing countries.

A factory of Tasle based in Sandton was converted from coal$-$based energy supplies to a fully solar based power plant in June $2021,$ which resulted in an average annual reduction of $20000$ tonnes of carbon dioxide emissions. The company as a result received certified emission reduction $($CERs$)$ from the United Nations on $1$ July $2021$ and intends to trade in CERs certificates.

The CERs awarded to Tasle are reliably estimated to have a total fair value of R$7$ million. Tasle also incurred R$20000$ for the registration and legal costs of these certificates on $1$ July $2021$ from Muller attorneys.

REQUIRED

Prepare a memorandum to the senior financial manager of Tasle Ltd in which you discuss how Tasle should recognise and measure the certified emissions reduction certificates in the financial statements of Tasle Ltd for the year ended $28$ February $2022.$

NB : Do not limit your discussion to IAS $1.$ Where possible, show all workings.