Globalization of Environmental Accounting Assignment

Globalization of Environmental Accounting Assignment Words: 495

The essay first gives introduction of the definition and background of the environmental accounting. Then, based on a comparative analysis of the guidelines under US-GAP and FIRS about environmental accountings development, system and information disclosure, the essay discusses the globalization trend of environmental accounting. And lastly, the paper emphasizes the necessity for Chinese companies to move ahead in this area and provides some advice for an environmental accounting application for Chinese companies.

Key Words: Environmental accounting, US-GAP, FIRS, Environmental accounting application 1 . Introduction of Environmental Accounting Traditionally, companies believe that environment protection activities will only increase cost. In fact, it can help companies to operate sustainable. Companies have found that the traditional methods of account rig;financial accounting, cost accounting and management accounting–are not giving them the flexibility needed for disclosure in the area of environmental protection costs.

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A new type of accounting has been developed: Environmental accounting. 2. 1 Definition of Environmental Accounting “Environmental accounting’ is used for more than environmental benefits ND costs. At micro level it means the entire domain of accounting for the environment including: financial accounting, reporting and auditing, and environmental management accounting. ” (1 ) It is an accounting system for any costs and benefits that arise from changes to a firm’s products or processes, where the change also involves environmental impacts.

According to the united States Environment Protection Agency (US EPA): “An important function of environmental accounting is to bring 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. ” (1) US Environmental Protection Agency (EPA). “An Introduction to Environmental Accounting as a Business Management Tool: Key Concepts And Terms” 2. Background of Environmental Accountings Development Environmental problems led by rapid economic growth have become more and more prominent. Environmental pollution, ecological imbalance and a series of environmental problems have intensified companies’ environmental risks. Companies are increasingly aware of the need to correct their attitude to environmental retention, to reflect the true operational matters related to the environment in order to prevent and control environmental pollution.

Researches about environmental accounting began in the 20th century after Floyd A. Beams first published the “Pollution Control through Social Cost Conversion” in 1 971. Since then, Western countries began to build accounting theories and form some preliminary theoretical frameworks. In 1 990, Rob Granny report on green accounting was a milestone in environmental accounting research which indicated that environmental accounting has become a central issue of global concern. 2.

Benefits of Environmental Accounting Environmental accounting aims at achieving sustainable development, maintaining a favorable relationship with the community, and pursuing effective and efficient environmental conservation activities. The environmental accounting procedures allow companies to identify the cost of environmental conservation during the normal course of business, identify benefit gained from such activities, provide the best possible means of quantitative measurement and support the communication of their results.

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Globalization of Environmental Accounting Assignment. (2019, Jul 20). Retrieved September 17, 2021, from https://anyassignment.com/sociology/globalization-of-environmental-accounting-assignment-51525/