According to The Environment Agency in the United Kingdom (2006), Environmental Accounting can be defined as:
“The collection, analysis and assessment of environmental and financial performance data obtained from business management information systems, environmental management and financial accounting systems. The taking of corrective management action to reduce environmental impacts and costs plus, where appropriate, the external reporting of the environmental and financial benefits in verified corporate environmental reports or published annual reports and accounts.”
According to the Chartered Institute of Management Accountants (CIMA), Management Accounting is:
"The process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of information used by management to plan, evaluate and control within an entity and to assure appropriate use of and accountability for its Resource (economics) resources. Management accounting also comprises the preparation of financial reports for non-management groups such as shareholders, creditors, regulatory agencies and tax authorities"
Companies are facing increasing concerns from various groups over their environmental impacts, and different stakeholders are asking for different types of information. Company management needs information on cost, revenues and profits. Environmental protection agencies, environmental organisations and community want information on environmental impacts, while tax authorities, shareholders and investors are concerned with environmental assets and liabilities. It was found that management accounting systems alone would not be up to the task of providing management with enough information to make proper decisions. As such, there was a need to implement the principles of environmental accounting into management accounting, so as to further increase the information available to stakeholders in the organisation and for... [continues]
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