Environmental Management Accounting
1.0 Introduction
In the past, the companies are managed their environmental problem by internal managers. Nowadays, the government is need companies to comply with good environmental performance. Environmental management accounting is a new technique to identify environmental cost flows of a company. Environmental Management Accounting (EMA) also can defined as the identification, collection, estimation, analysis, internal reporting and use of material and energy flow information, environmental cost information and other cost information for both conventional and environmental decision-making within an organization (Tellus Institutes). EMA simply defines as management accounting with a focus on physical information on the flow of energy, water, products and material as well as monetary information on environmental costs and revenues and projects related to environmental protection (Christine Jasch, 2005).
The uses and benefits are various. EMA is very useful for the internal management with a specific target on environment such cleaner production, supply chain management, green environment or production and environment management system. EMA is not only improving the environmental management system rather than help to improve all the management activities. Its helps to track and maintain the accurate use and flow of energy and material include the pollution, waste volume and fate. EMA also helps to identify the more accurate environmental types of costs. It’s also gives exact and comprehensive information for the measurement and reporting of environment performance, which improve the company image with stakeholder such as customers, investors, employees, government and etc (Tellus Institutes).
2.0 Traditional management accounting system
Traditional management accounting system is the one of the system which is used by all the company to provide their financial performance. Unfortunately, these systems are unable to provide report with
In the past, the companies are managed their environmental problem by internal managers. Nowadays, the government is need companies to comply with good environmental performance. Environmental management accounting is a new technique to identify environmental cost flows of a company. Environmental Management Accounting (EMA) also can defined as the identification, collection, estimation, analysis, internal reporting and use of material and energy flow information, environmental cost information and other cost information for both conventional and environmental decision-making within an organization (Tellus Institutes). EMA simply defines as management accounting with a focus on physical information on the flow of energy, water, products and material as well as monetary information on environmental costs and revenues and projects related to environmental protection (Christine Jasch, 2005).
The uses and benefits are various. EMA is very useful for the internal management with a specific target on environment such cleaner production, supply chain management, green environment or production and environment management system. EMA is not only improving the environmental management system rather than help to improve all the management activities. Its helps to track and maintain the accurate use and flow of energy and material include the pollution, waste volume and fate. EMA also helps to identify the more accurate environmental types of costs. It’s also gives exact and comprehensive information for the measurement and reporting of environment performance, which improve the company image with stakeholder such as customers, investors, employees, government and etc (Tellus Institutes).
2.0 Traditional management accounting system
Traditional management accounting system is the one of the system which is used by all the company to provide their financial performance. Unfortunately, these systems are unable to provide report with