Impact of Environmental Accounting in Management Accounting System

Topics: Cost, Management accounting, Management Pages: 13 (3839 words) Published: April 28, 2010
What is Accounting
Branches of Accounting
Definition of Environmental Accounting
Definition of Management Accounting
Functions of Management Accounting
Features of Useful Management Accounting
{text:list-item} {text:list-item} {text:list-item} {text:list-item} {text:list-item} {text:list-item} {text:list-item} BENEFITS OF ENVIRONMENTAL ACTIVITIES
Economic effects of Environmental activities
IMPACT OF ENVIRONMENTAL ACCOUNTING IN MANAGEMENT ACCOUNTING SYSTEM. CONCLUSION INTRODUCTION An overview of accounting is needed to understand the impact of environmental accounting in management accounting system. Environmental accounting can support national income accounting, Financial Accounting or internal business managerial accounting. Hence, some basic accounting terms are to be explained in other to have a better understanding of the primer under study. Accounting: **American Institute of Certified Public Accountant (1962) defined Accounting as “the act of recording, classifying and summarising in a significant manner and in terms of money, transactions and events which are part at least of a financial character and interpreting the result thereof”. American Accounting Association defines Accounting as “the process of identifying, measuring and communicating economic information to permit informed judgement and decision by users of the information”. Basically, Accounting can be defined as “the process of collection, recording, presenting, analysing and interpreting financial information for the users of financial statement”. BRACHES OF ACCOUNTING

There are various branches of accounting. They are,
Financial Accounting
Cost and Management Accounting
Government Accounting
Oil and Gas Accounting
Auditing and Investigation.
Environmental Accounting: Encarta Dictionaries define Environmental Accounting as the inclusion of indirect cost i.e. the practice of including the indirect costs and benefits of a product or activity, e.g. its environmental effects on health and the economy, along with its direct costs when making business decisions. Environmental Accounting deals with two different, sometimes conflicting goals of important stakeholders which may be linked with two main groups of company-related environmental information: {text:list-item} It is thus not a surprise that many different perceptions of and examples relating to “environmental accounting” exist and that different tools have developed to deal with physical and monetary issues. Every environmental accounting system has been designed to provide specific information for different stakeholders. *MANA*GEMENT ACCOUNTING SYSTEM

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 resources. Management accounting also comprises the preparation of financial reports for non management groups such as shareholders, creditors, regulatory agencies and tax authorities. (CIMA official terminology.) The core activities of management accounting include;

It should be relevant for its purpose.
It should be complete for its purpose.
It should be sufficiently accurate for its purpose.
It should be clear to the manager using it.
The manager using it should have confidence in it.
It should be communicated to the appropriate manager. Its volume should be manageable.
It should be timely.
It should be communicated...
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