...Significance of the Study These are the following individuals or institutions that will benefit from the findings of the study: Government. This study will provide a basis on making or improving government policies, rules and regulations regarding accounting for negative externalities in the Philippines. Since climate change is a global issue, the government of the Philippines is in need to intervene with institutions or companies that contribute to it. For the local government of Misamis Oriental, this study will help them on having a good picture on what is the accounting practice related to negative externalities of the companies located within the premises. This will help them on deciding to issue a local provisions or city ordinance and implementations in dealing with the current matter. The Society. The society can derive benefits from this study because whatever rules and policies that the government issues, they will be the end recipient. Sustainable developments by companies will also have a great impact on the society particularly on the regulation of activities that will mitigate the negative impact on the environment. Thus, they are able to lessen the burden in paying alone the consequences of the negative externalities emitted by companies. Academe. This particular institution will be benefited by making this study as one of the references in promoting sustainable responsibility to the students of their respective field. As moulder of the future accountants...
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...DEPARTMENT OF ACCOUNTING MASTERS IN ACCOUNTING AND FINANCE (M.Sc) ACC 512 – ADVANCED MANAGEMENT ACCOUNTING “ENVIRONMENTAL MANAGEMENT ACCOUNTING AS A STRATEGY FOR CORPORATE SUVIVIAL” PRESENTED TO THE COURSE LECTURER – PASTOR j a OLOREDE BY; OLUMIDE ABISOYE OLOWOKURE PGSS/UJ/00083/10 Introduction Environmental accounting is a broader term that relates to the provision of information on environmental-performance to different stakeholders both within, and outside, an organization. The United States Environment Protection Agency (US EPA) sees the main function of environmental accounting as that of bringing environmental costs to the attention of corporate stakeholders who may be able and motivated to identify ways of reducing or avoiding those costs while at the same time improving environmental quality. Environmental accounting has three major aspects. 1. National Income accounting, which addresses the environmental accounting need of the nation and it’s external in nature. It is basically the micro economic measure which may use for instance physical or monetary units to refer to the consumption of the nation’s natural resources. 2. Financial accounting which addresses the environmental accounting needs of the firm this is also external in nature. This may simply be the estimation and public reporting of environmental liabilities and financial material environmental costs. 3. Managerial/management accounting, this...
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...a) Briefly outline what you understand by environmental accounting and environmental reporting? Throughout this essay the social accounting issue ‘environmental accounting’ will be discussed. Environmental accounting is ‘the practice of including the indirect costs and benefits of a product or activity, for example, its environmental effects on health and the economy, along with its direct costs when making business decisions.’ Also ‘the term environmental accounting is frequently used within the accounting and environmental management literatures. Environmental accounting is a broader term that relates to the provision of environmental-performance-related information to stakeholders both within, and outside, an organisation.’(epa.vic). There are many definitions for environmental accounting, however, there is no accepted single definition. Environmental accounting is also connected to Green accounting. Green accounting is seen as one of the most important aspects of environmental accounting. ‘The term, green accounting, has been around since the 1980s, and is known as a management tool used for a variety of purposes, such as improving environmental performance, controlling costs, investing in “cleaner” technologies, developing “greener” processes and products, and forming decisions related to their business activities.’(articalbase). Being a ‘green’ company it has a positive impact and makes the company or business look good. It also measures ‘carbon footprint’, how sustainable...
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...Saturday, July 24, 2010Environment Environmental accounting A key to sustainable development Environmentally idyllic Bengal. K. M. Nazmul Islam and Dr. Ahmed Kamruzzaman Majumder THE concept that every nation might acknowledge the economic role of the environment in its income accounts is neither a hasty shift nor a quick practice; it has been under discussion globally since the 1960s. Unfortunately in Bangladesh the contribution of the environmental goods and services in the national economy has been ignored for a long time. In the changing circumstances of global climate it is high time that we wake up and recognize the contribution of the environment to sustain our economy. For a long time, conventional indicators like Gross Domestic Product (GDP), Gross National Product (GNP) and Net Domestic Product (NDP) were used around the world to construct national accounts and as a measure of the economic progress of a country and standard of living. However, these traditional measures of economic activity failed to be responsive because of the fact that economy cannot operate without the support of the natural environment. National accounts allow depreciation allowance for manufactured assets, while the contributions of environmental assets to economy are not valued and hence no depreciation allowance is made for these assets. Thus, in Bangladesh, omission of the degradation and depletion of the country's natural capital will lead to over estimation of the national income figures...
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...Environmental Accounting Environmental accounting is the ‘use of traditional accounting- and finance principles to compute the environmental costs of commercial and industrial decisions.’ Accountants have the role to help business’ understand the implications of decisions that affect the environment, this in turn will help to ‘deliver commercial benefits and safeguard the natural assets the business depends on.’ The key issues involved are those that effect the environment in a negative manner, therefore sustainability is vital. Sustainability brings positive outcomes to a company’s bottom line as it reduces a company’s carbon footprint which leads to ‘tangible bottom line benefits’. Due to sustainability being the underlining word, investors are now calling for ‘more meaningful non-financial information to sit alongside the audited financial accounts’. Investors are asking for this because the overall performance of a company is not just based on the financial accounts anymore, therefore there is hope for a ‘global framework for accounting and sustainability’ which will provide the required information the investors seek. Numerous accounting organisations like the ICAEW, TEEB for Business Coalition, Accounting for Sustainability and the IAASB are all trying to encourage more environmental friendly procedures to occur from business’ whether that be ‘developing a standard on greenhouse gases and robust report writing’, or researching into ‘measuring how much companies should...
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...1. Briefly describe the disclosures of environmental information by United Airlines, regarding methods, standards, types of metrics, and assurance. United has implemented many initiatives relating to their aircraft and their overall operations, including a carbon offset program, efficient route and fuel planning, alternative fuels for ground support equipment, and recycling programs at several of facilities. United has also worked with their partners to introduce an environmental friendly engine wash, and they continue to advocate in the industry for a modernized air traffic control system which could reduce emissions by more than 12%. United said they’re “focusing on reducing our impact on the environment from all angles-in the air, on the ground, at our facilities, with our business partners and across our communities.” Commitment to the Environment—1st, reduce fuel use and improve fuel efficiency of our aircraft and vehicles through technology and process innovation; 2nd, advance and utilize environmentally responsible and cost-efficient alternative fuels; 3rd, improve the sustainability of products and our facilities, and responsibly manage wastes generated by our business activities; 4th, work together with our co-workers and partner with our stakeholders-customers, airports, business partners, suppliers, governments and NGOs-to promote accountability and protect the environment while achieving our business goals. United supports a global approach to addressing greenhouse...
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...THE ROLE OF SOCIAL AND ENVIRONMENTAL REPORTING IN THE ORGANIZATIONS Author: Mohamed Anas (2015) INTRODUCTION There has been an increase in demand for environmental and social reporting as well as other non-financial information by shareholders and users of financial statements. In early 2000’s the stakeholders and shareholders are only concerned with the financial performance but now the trend has changed as that the shareholders and stakeholders who believed that the organization should be responsible to the environment and society in which they operate the business, and therefore it needs to be good for the community. This has caused that many laws and regulations such as environmental and social laws, employment laws, anti-corruption laws and good governance laws developed by the states to protect the environment and social issues icons. The concept of social responsibility has been raised in the context of this because the organization must be committed to run the business ethically and contribute for the growth of the economy, and at the same time improving the standard of life of employees and their families as well as for the society they operate their business and future generation. REQUIREMNT OF THE CURRENT CONCEPTUAL FRAMEWORK Conceptual framework is a guideline issued by international accounting standard board (IASB) for the development of international accounting standards (IAS). It is a practical tool that assist IASB to develop standards and assist preparers...
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...ACC 430 Governmental Accounting (Online) Chapter 1 Questions 1-2. Identify and describe the five environmental differences between governments and for-profit business enterprises as identified in the Governmental Accounting Standards Board’s Why Governmental Accounting and Financial Reporting Is-and Should be-Different. 1. Organizational Purposes-A governments organizational purpose is to provide public services for the well-being of citizens regardless of profit. Whereas a for-profit business’s organizational purpose is to generate a profit for the owner while providing services to the public. 2. Sources of Revenues-A for-profit business’s source of revenue is its net income (total revenues (sales)-total expenses). A government’s source of revenue is mainly from taxes. 3. Potential for Longevity-State and local governments rarely go out of business, because they are given the ability to tax. For this reason, governments view accounting operations on a long-term basis instead of short-term. Governments focus on maintaining services and how to meet future demands. 4. Relationship with Stakeholders-Since a Governments main source of revenue is taxes, which are paid by citizens; they are required to account for these public funds. Whereas a business can use its resources as it chooses. 5. Role of Budget-Business’s prepare a budget for planning and control purposes and are normally not provided to creditors or investors. Governments on the other...
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...October 19, 2013 Prepared by: Yuehan Zhang (Stefanie) Reviewed by: Professor Robert Elya ISSUE: Accounting for Energy Inc.’s environmental obligations, income tax and install smoke filters. BRIEF BACKGROUND OF COMPANY Energy Inc. (Energy) is a public company that operates in the oil industry. As of December 31, 2011, Energy recognized $ billion in revenue for the sale. Sometimes, Energy’s operations result in soil contamination and Energy should clean up this contamination when legislation requiring under the laws of the particular country. In addition, Energy has a widely published environmental policy in which it undertakes clean up all contamination that it causes. Energy is currently involved in environmental obligations, such as clean up the lands. ACCOUNTING QUESTIONS 1. Does Energy recognizes and accrues the liability of clean up costs in this year? What is the accounting treatment? 2. Is Energy has the obligations to undertake soil remediation in Dirty country? What is the accounting treatment for this operation in Dirty country? 3. What is the accounting treatment for new income tax? What is the accounting treatment for training employees? 4. Does Energy have obligations to install smoke filters this year? What is the accounting treatment for installing smoke filters in Energy’s factories next year? SUMMARY CONCLUSION ON ACCOUNTING QUESTIONS 1. Energy should recognize and accrue the liability of clean up lands in this year. Energy...
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...metrics are in a constant state of evolution. The quest for sustainable development started with environmental concerns, and climate change has now become one of the biggest developmental challenges. As the Brundtland Commission had discovered...
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...A report of environmental cost on high-speed railway Introduction Environment is important to the survival of human; people’s living activities can not be separated from the environment. The purpose of Environmental Engineering is to reduce human damage to the environment, and improve the quality of the environment. Governance environment requires not only technology and management, but also the analysis of the environmental costs. We should also take environmental costs into account appropriately when conducting environmental governance. We should seek the balance of the environmental benefits and economic benefits. Nowadays, the environment of the railway project has drawn increasing attention of many countries. The high-speed rail construction in recent years, make the topic of environmental costs gradually be put on the agenda. The origin of the world's high-speed railway is in 1964, Japan has built the world's first high-speed railway, operating speed at that time is about 210 km / h, and now its speed is 270 km/h. Japan has researched the environmental impact of the high-speed railway, and has got great achievements. United States, Japan, Canada have done many research on environmental impact, and founded a mature system to evaluate the environmental effects of high-speed railway. Evaluating environmental impact is inevitable in the feasibility study stage. High-speed rail construction has produced a series of effects on human living environment. We need to reduce these...
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...Accounting is not the same as it used to be. Advancements in information technology have transformed the accounting process and the ways in which accountants undertake their roles. Bookkeeping, calculations and data storage that were previously maintained on paper are now all processed on computers through the use of accounting information systems. It is a known fact that accounting is influenced by external factors such as the economy, laws and society and it must persist to remain current with all the factors that affect the accounting process to maintain its effectiveness. Society has had a great influence over the accounting process, so much so, that a notion stating some information regarding the internal workings of a company should be made available to the public, forced the mandatory disclosure of a company’s financial information to its stakeholders as well as the public. Society has also influenced accounting in a more indirect manner. This can be illustrated by how the societal push towards a more environmentally aware culture forced new regulations and standards such as ISO 14001 (International Organization For Standards, 2010) to be established to reflect this perceptional change, which in turn indirectly created compulsory costs for a company pertaining to the promotion of environmental sustainability. Companies are now obligated to offset their pollution levels and any harmful bearings their corporate activities cause to the environment, as well as...
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...Accounting, Auditing & Accountability Journal On Valuing Nature Ruth Hines Article information: To cite this document: Ruth Hines, (1991),"On Valuing Nature", Accounting, Auditing & Accountability Journal, Vol. 4 Iss 3 pp. Permanent link to this document: http://dx.doi.org/10.1108/09513579110144802 Downloaded on: 22 September 2014, At: 09:07 (PT) References: this document contains references to 0 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 1512 times since 2006* Users who downloaded this article also downloaded: Downloaded by UNIVERSITI UTARA MALAYSIA At 09:07 22 September 2014 (PT) Ruth D. Hines, (1989),"Financial Accounting Knowledge, Conceptual Framework Projects and the Social Construction of the Accounting Profession", Accounting, Auditing & Accountability Journal, Vol. 2 Iss 2 pp. Christine Cooper, (1992),"The Non and Nom of Accounting for (M)other Nature", Accounting, Auditing & Accountability Journal, Vol. 5 Iss 3 pp. Christopher Humphrey, Robert W. Scapens, (1996),"Methodological themes: Theories and case studies of organizational accounting practices: limitation or liberation?", Accounting, Auditing & Accountability Journal, Vol. 9 Iss 4 pp. 86-106 Access to this document was granted through an Emerald subscription provided by 394654 [] For Authors If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service...
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...Accounting is not the same as it used to be. Advancements in information technology have transformed the accounting process and the ways in which accountants undertake their roles. Bookkeeping, calculations and data storage that were previously maintained on paper are now all processed on computers through the use of accounting information systems. It is a known fact that accounting is influenced by external factors such as the economy, laws and society and it must persist to remain current with all the factors that affect the accounting process to maintain its effectiveness. Society has had a great influence over the accounting process, so much so, that a notion stating some information regarding the internal workings of a company should be made available to the public, forced the mandatory disclosure of a company’s financial information to its stakeholders as well as the public. Society has also influenced accounting in a more indirect manner. This can be illustrated by how the societal push towards a more environmentally aware culture forced new regulations and standards such as ISO 14001 (International Organization For Standards, 2010) to be established to reflect this perceptional change, which in turn indirectly created compulsory costs for a company pertaining to the promotion of environmental sustainability. Companies are now obligated to offset their pollution levels and any harmful bearings their corporate activities cause to the environment, as well as allocating...
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...the company’s US based factories. PC company policy allows contamination cleanup when required by environmental legislation. The company also needs to install smoke filtering systems before the law is instituted early next year. PC is concerned with the financial accounting treatment for two environmental issues: (a) environmental cleanup, and (b) smoke filter installation for year 20x2. Both issues, if not resolved, could lead to legal action against PC if not followed by a prescribed date. The Company needs to determine if the contaminated soil and smoke filter requirement should be disclosed on the financial statements as an asset retirement obligation, loss contingency, or an environmental obligation. APPLICABLE AUTHORITATIVE LITERATURE FASB Accounting Standards Codification (ASC) 410 Asset Retirement and Environmental Obligations FASB Accounting Standards Codification (ASC) 450 Contingencies DISCUSSION OF ALTERNATIVES The following section will address the alternative treatments accounting for both the remedial action and smoke filtration system under US GAAP. Recording both issues as a loss contingency will be discussed first, followed by soil contamination as environmental remediation, then applying the asset retirement obligation treatment for pollution from normal operations. Alternative 1: Contaminated Soil and Smoke Filter Disclose both environmental issues as a loss contingency using a footnote. Soil contamination and smoke filters both meet...
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