Globalization of Environmental Accounting
Jingyi Wang (MAcc)
December 1st, 2010
Abstract
As environmental issues have received much concern, more and more companies realize the importance of environment-related financial issues, especially environmental accounting. Many countries like US and Japan have made significant progress in this field, while China is facing difficulty in the development of environmental accounting.
The objective of this essay is to discuss the international trend of the application of environmental accounting and to give recommendations to China’s construction of an environmental accounting system. 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-GAAP and IFRS about environmental accounting’s 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-GAAP, IFRS, 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 sustainably. Companies have found that the traditional methods of accounting--financial accounting, cost accounting and management accounting--are not giving them the flexibility needed for disclosure in the area of environmental protection costs. 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 and costs. At micro level it means the entire domain of accounting for the environment including: financial... [continues]
Jingyi Wang (MAcc)
December 1st, 2010
Abstract
As environmental issues have received much concern, more and more companies realize the importance of environment-related financial issues, especially environmental accounting. Many countries like US and Japan have made significant progress in this field, while China is facing difficulty in the development of environmental accounting.
The objective of this essay is to discuss the international trend of the application of environmental accounting and to give recommendations to China’s construction of an environmental accounting system. 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-GAAP and IFRS about environmental accounting’s 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-GAAP, IFRS, 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 sustainably. Companies have found that the traditional methods of accounting--financial accounting, cost accounting and management accounting--are not giving them the flexibility needed for disclosure in the area of environmental protection costs. 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 and costs. At micro level it means the entire domain of accounting for the environment including: financial... [continues]
Cite This Essay
- APA
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(2011, 01). Globalization of Environmental Accounting. StudyMode.com. Retrieved 01, 2011, from http://www.studymode.com/essays/Globalization-Of-Environmental-Accounting-554074.html
- MLA
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"Globalization of Environmental Accounting" StudyMode.com. 01 2011. 01 2011 <http://www.studymode.com/essays/Globalization-Of-Environmental-Accounting-554074.html>.
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"Globalization of Environmental Accounting." StudyMode.com. 01, 2011. Accessed 01, 2011. http://www.studymode.com/essays/Globalization-Of-Environmental-Accounting-554074.html.
