Environmental Accounting and Management

This assignment delves into the realm of environmental accounting and management through a comprehensive review of recent academic literature. It examines various aspects of this evolving field, including the role of management accounting information in promoting eco-efficiency, the integration of sustainability assessment with corporate control and reporting, and the impact of environmental factors on accounting practices. The analysis highlights key trends, research paradigms, and future directions within environmental accounting.

Running head: ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
Environmental Accounting and Management Accounting
Name of the Student:
Name of the University:
Author Note:

2ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
Executive Summary
The present paper highlights the concepts of environmental accounting and management
accounting for the case study company known as Premier Investments Limited. The first part
explains about positive and negative environmental and social impacts for Australian listed retail
company named as Premier Investments Limited. The four key GRI disclosures are explained in
the study and these are materiality concept, inclusiveness of stakeholders, sustainability context
and completeness of information. The next segment finds out whether opening Smiggle and
Peter Alexander stores is feasible or not by using tools such as break-even analysis and balanced
scorecard approach.

3ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
Table of Contents
Introduction......................................................................................................................................3
Part A...............................................................................................................................................3
Discussion of the environmental and social impacts of Premier Investments Limited...................3
Positive environmental impact of Premier Investments Limited................................................3
Negative environmental impact of Premier Investments Limited...............................................4
Positive social impact of Premier Investments Limited..............................................................5
Negative social impact of Premier Investments Limited.............................................................5
Highlighting four key GRI disclosures that are probably to be the most significant attributes to
the stakeholders of Premier Investments Limited...........................................................................6
Comparing quality and depth of environmental performance information between Premier
Investments Limited and Myer Holdings Limited...........................................................................7
Analyzing whether prevalent conformity with the GRI guidelines by Australian retail trade that
help in promoting potential investors, present shareholders and other stakeholders of Premier
Investments Limited......................................................................................................................10
Part B.............................................................................................................................................11
Highlighting probable major costs that are associated with ongoing operations of Smiggle and
Peter Alexander.............................................................................................................................11
Approximation of cost behavior (fixed, variable or otherwise) of each of the main costs
identified........................................................................................................................................11

4ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
Critically assess whether use of break-even analysis would be helpful and consistent screening
tool for Premier Investments Limited where the company assess the desirability of opening up
new stores in new territories..........................................................................................................12
Balanced scorecard of Premier Investments Limited....................................................................12
Part C.............................................................................................................................................13
Break even.....................................................................................................................................13
Achieve an after-tax profit of $350000.........................................................................................14
Recommending a number of probable initiatives that should be implemented by Premier
Investments Limited in relation to Custom Finish Lab concept for enhancing the break-even
point of annual profit.....................................................................................................................16
Conclusion.....................................................................................................................................17
Reference List................................................................................................................................18

5ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
Introduction
The current segment explains the concept of two major aspects such as environmental
accounting and management accounting (Zvezdov & Schaltegger, 2015). The associated
company that is discussed in the entire assignment is Premier Investments Limited that is listed
as one of the Australian public company by shares and listed in Australian Stock Exchange from
the year 1987. The company operates or act as an investment vehicle who focus mainly on
growth maximization that give capital returns to shareholders by acquisition of control over
shareholdings in topmost Australian companies. The company looks into several areas such as
retailing, importing and distributing of their products. The next segment clearly talks about the
management accounting part where importance of break-even analysis is explained as the case
was to find out feasibility on whether Smiggle stores and Peter Alexander stores can be operated
in UK, North America and Asia. The only approach that takes into account both financial and
non-financial measures is balanced scorecard approach is discussed in this section by keeping the
situation into consideration (Soderstrom, Soderstrom & Stewart, 2017).
Part A
Discussion of the environmental and social impacts of Premier Investments Limited
Positive environmental impact of Premier Investments Limited
 From the sustainability report of Premier Investments Limited, it is found out that
packaging stewardship has positive impact on environment as a whole. The company is
working hard for managing and reducing the impact of trade activities that hampers the

6ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
environment. In order to check over environment, the company submitted a 5 year Action
Plan that clearly defines the objectives related to packaging optimization for reducing
environment impact as well as collectables check and recycling of packaging where the
company is working towards product stewardship in accordance to sustainable packaging
guidelines (Sands & Lee, 2015).
 From the sustainability reporting of Premier Investments Limited, it is found out that
recycling of waste disposal has positive impact on the environment as a whole. In order
to keep a check on environment, the company deals in extensive recycling activities and
use sustainable practices in their stores, support center and distribution centres
(Radebaugh, 2014).
 From the sustainability reporting of Premier Investments Limited, it is found out that
effective use of energy has positive impact on environment as a whole. In order to keep a
check on the environment, the company realized the significance of energy efficient
techniques to be used and low environment activities that impact to improved lighting
systems and work in accordance to new lighting standards that can properly manage
energy consumption in their stores (Otley, 2016).
Negative environmental impact of Premier Investments Limited
Premier Investments Limited expects that their employees actively participate in
activities that can reduce several environmental issues and give access to efficient business and
customer satisfaction in positive way. Several issues are faced by Premier Investments Limited
and they are working towards reducing these environmental issues in relation to packaging,
waste and energy (Mokhtar, Jusoh & Zulkifli, 2016).

7ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
Positive social impact of Premier Investments Limited
 From the sustainability reporting of Premier Investments Limited, it is found out that
Community Partnerships with Smiggle has positive impact on the society as whole.
Premier Investments Limited believes in maintaining strong community partnership with
their potential and existing global partners.
 From the sustainability reporting of Premier Investments Limited, it is found out that
Support Centre organized by the company act as a measure that has positive impact on
the society as a whole (Maas, Schaltegger & Crutzen, 2016).
 Premier Investments Limited believes in attracting and retention of best and experienced
talents and this is the reason why the company has more than 6000 employees who are
working in several countries under several brands.
 Premier Investments Limited believes in rendering training programs to the employees so
that they can develop and become future aspiring leaders. The company organized more
than 100 training and development workshops that is taken by People and Culture
managers and Senior Leaders.
Negative social impact of Premier Investments Limited
The company faces several social issues that relates to safety, security and development.
The company needs to follow the above-mentioned strategies to reduce the issues as far as
possible. The company should work best to make the company a better place where team
members are ready to build up careers (Houghton, 2013).

8ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
Highlighting four key GRI disclosures that are probably to be the most significant
attributes to the stakeholders of Premier Investments Limited
This particular question highlights four important key GRI disclosures that will likely
provide relevance to the stakeholders for the case company Premier Investments Limited. The
GRI disclosures need to be properly understood to further explain about the four key disclosures
in detail. Global Reporting Initiative Framework can be treated as one of the frameworks that is
generally accepted framework that takes into account aspects like social, environment and
economic. The GRI framework in real explains general and sector-specific content as that guide
large number of stakeholders. The company actually had introduced full GRO framework from
the outset. The company had explained about the scope of reporting as well as highlights the plan
for expanding in the reporting period (Gray, Adams & Owen, 2014).
The GRI disclosures are taken from the 5.1 Sustainability Reporting where each of the
disclosures is explained with proper justification. Below is proper explanation of facts where first
two disclosures are taken from 5.1 sustainability and next disclosures are taken from 5.2
sustainability report. The four key GRI disclosures are explained below:
 Materiality concept- To explain in detail, materiality concept is the first GRI disclosure
taken from 5.1 sustainability report. The concept means that it has direct impact on
environment, economy and society as a whole. The concept should be adopted by
Premier Investments Limited as it helps the business to get access to information from the
owners, investors, regulators and lenders (Granlund & Lukka, 2017). This concept
increases the demand for transparent actions that impact on Premier Investments Limited

9ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
 Inclusiveness of stakeholders- To explain in detail, stakeholder inclusiveness is the
second GRI disclosures taken from 5.1 sustainability report. Premier Investments Limited
should identify their stakeholders as well as inform them about any of the changes that
are planned by the company. These disclosures will guide Premier Investments Limited
for explaining the reporting content that is material to the business as well as
stakeholders. The GRI disclosures came into existence as a logical flow of activities on
how to make use of these disclosures in proper reporting activities. These disclosures will
help Premier Investments Limited to get access to ongoing as well as unstoppable process
in compilation with business report guidelines (Figge & Hahn, 2013).
 Sustainability context- To explain in detail, sustainability context is the third GRI
disclosures taken from 5.2 sustainability report. The company under study should be
taking into account several aspect of sustainability where they need to act ethically for
getting the benefits in the near future. The company unlike other companies believes in
providing satisfactorily returns to the stakeholders.
 Completeness of information- To explain in detail, completeness of information is the
fourth GRI disclosures taken from 5.2 sustainability report. The company should provide
complete and authentic information to the stakeholders as they had invested their money
in the business (Drury, 2013).
Comparing quality and depth of environmental performance information between Premier
Investments Limited and Myer Holdings Limited
It is important to consider both the company named as Premier Investments Limited and
Myer Holdings Limited. Here, Premier Investments Limited belongs to Australian retail groups

10ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
that had purchased 10.8% in department stores from Myer Holdings Limited. In addition, it is
noted that shareholders of Premier Investments Limited have actually backed their stake at Myer
Holdings Limited. The company control more than 42% from the listed groups and fortune that
lasts valued at $2.4 billion.
Figure: Share Price of Premier Investments Limited
(Source: Dillard, Yuthas & Baudot, 2016)

11ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
Figure: Share Price of Myer Holdings Limited
(Source: Dillard, 2014)

12ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
Analyzing whether prevalent conformity with the GRI guidelines by Australian retail trade
that help in promoting potential investors, present shareholders and other stakeholders of
Premier Investments Limited
It is important to consider the fact that Premier Investments Limited has access to huge
profits that is taken from their brand Smiggle brands as mentioned in the GRI guidelines. On
analysis, it is noted that Premier Investments Limited primarily operates in clothing and
stationary items for preparation of half-yearly reports on matters relating to sales and growth.
Premier Investments Limited enjoys net profit at $71.5 million and there is even constant
increase by 25.9% on their profit in the most appropriate way (Deegan, 2016).

13ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
Part B
Highlighting probable major costs that are associated with ongoing operations of Smiggle
and Peter Alexander
Cost can be broadly classified into major types and these are material cost, labor cost,
selling expenses and administrative expenses. The cost gets associated with the brand names
Smiggle and Peter Alexander for the company named as Premier Investments Limited. The sale
of Peter Alexander comes at $100.7 million (Contrafatto & Burns, 2013). To that, it is found that
there is increase in sales at 17.7%. It is important to consider the fact that online sales continues
to grow as the company has strong base of information in the most appropriate way.
Approximation of cost behavior (fixed, variable or otherwise) of each of the main costs
identified
In order to carry out the business smoothly, some of the costs that are needed by Smiggle
and Peter Alexander brand are printing cost, labor as well as manufacturing costs and factory
costs. These brands in actual believes in delighting customers and delivering a unique shopping
experience in their stores and also through online transactions. In addition, Smiggle was one of
the brands under Premier Investments Limited where they desire to open stores as the sales
comes around $89.6 million by 14.5%. Therefore, Premier Investments Limited aims at focusing
on producing new products and assortment delivering results (Christ & Burritt, 2013).

14ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
Critically assess whether use of break-even analysis would be helpful and consistent
screening tool for Premier Investments Limited where the company assess the desirability
of opening up new stores in new territories
Break-even analysis is one of the useful tool that need to be used by Premier Investments
Limited for understanding the feasibility of opening new stores in new territories. In addition,
break-even analysis represents relationship between cost volume and profits at various levels of
activity. This analysis will help Premier Investments Limited for measuring profit and loss at
different levels of both production and sales (Bouten & Hoozée, 2013).
Balanced scorecard of Premier Investments Limited
Premier Investments Limited decides to open brands such as Smiggle and Peter
Alexander stores in areas such as Asia, North America and UK. From the above balanced
scorecard, it is easy to get proper insights of information about financial and non-financial

15ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
aspects. This aspects need to be taken into consideration at the time of deciding opening new
stores in different locations. The approach will guide Premier Investments Limited for increasing
desired knowledge and skills where the employees can learn from any of the mistakes. Premier
Investments Limited should engage in innovating new product in their stores to attract new set of
customers (Bebbington, Unerman & O'Dwyer, 2014).
Part C
Break even
Blast Wash Faded Wash Ripped &
Scuffed
Particulars Per
Unit
Total Per
Unit
Total Per
Unit
Total Total
Expected Sales (in units) 8000 10000 7000 25000
Selling Price $30 $240,000 $30 $300,00
0
$35 $245,00
0
$785,000
Variable Cost:
Labor $7 $56,000 $4 $40,000 $10 $70,000 $166,000
Materials $4 $32,000 $3.50 $35,000 $0 $67,000
Variable Overhead $4 $32,000 $3 $30,000 $6 $42,000 $104,000
Total Variable Cost $15 $120,000 $10.50 $105,00
0
$16 $112,00
0
$337,000

16ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
Contribution Margin
p.u.
$15 $120,000 $19.50 $195,00
0
$19 $133,00
0
$448,000
Weighted Average
Contribution Margin
$17.92
Fixed Costs:
Equipment Depreciation $200,000
Rent $80,000
Marketing $150,000
Other $110,000
Total Fixed Costs $540,000
Break-Even Sales 30134
Break-Even Sales by
product
9643 12054 8438 30134
Achieve an after-tax profit of $350000
Blast Wash Faded Wash Ripped &
Scuffed
Particulars Per
Unit
Total Per
Unit
Total Per
Unit
Total Total
Expected Sales (in units) 8000 10000 7000 25000

17ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
Selling Price $30 $240,000 $30 $300,00
0
$35 $245,00
0
$785,000
Variable Cost:
Labor $7 $56,000 $4 $40,000 $10 $70,000 $166,000
Materials $4 $32,000 $3.50 $35,000 $0 $67,000
Variable Overhead $4 $32,000 $3 $30,000 $6 $42,000 $104,000
Total Variable Cost $15 $120,000 $10.50 $105,00
0
$16 $112,00
0
$337,000
Contribution Margin
p.u.
$15 $120,000 $19.50 $195,00
0
$19 $133,00
0
$448,000
Weighted Average
Contribution Margin
$17.92
Fixed Costs:
Equipment Depreciation $200,000
Rent $80,000
Marketing $150,000
Other $110,000
Total Fixed Costs $540,000
Targeted after tax profit $350,000
Tax Rate 30%
Targeted before tax $500,000

18ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
profit
Target Sales 58036
Target Sales by product 18571 23214 16250 58036
Recommending a number of probable initiatives that should be implemented by Premier
Investments Limited in relation to Custom Finish Lab concept for enhancing the break-
even point of annual profit
It is important to consider the fact from the specific segment that Peter Alexander aims at
offering customization services where customers can personalize their clothing purchases by
adding anything such as names or initials. For implementation of this idea, it is necessary to plan
out hypothetical information regarding designing of a new proposal for improving the overall
profitability of Just Jeans (Ball, Grubnic & Birchall, 2014). It was suggested by one of the
marketing manager of Just Jeans to engage in new investment process to create Custom Finish
Lab. Here at Custom Finish Lab, online customers will be able to get an option to personalize
their purchased jeans with a wide range of finishes that takes into account blast wash, ripped,
faded ash and scuffed.
Calculation of break-even point is already done in the assignment where a new proposal
is outlined for an investment for creating Custom Finish Lab. In addition, the planning is done by
the company so that the online customers can make selection from a wide range of options like
blast wash, ripped, faced wash and scuffed ones. It is noted that the expected sales per annuum

19ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
for blast wash arrives at 8,000, faded wash for 10,000 and 7000 for ripped and scuffed. However,
break-even sales per product are at 9643 for blast wash, 12054 for faded wash and 8438 for
ripped and scuffed. It is important to consider the fact that Premier Investments Limited should
be increasing their sales for meeting the demand of the online customers otherwise it is probable
to gain profits from the Custom Finish Lab concept at the same time. Premier Investments
Limited should be keeping their product lower at price as compared to its competitors for
attracting new as well as retaining existing ones.
Conclusion
The above analysis properly explains the concept of environmental management and
management accounting. Positive and negative social and environmental impact is explained in
the above study for the company named as Premier Investments Limited. The company is
following the GRI guidelines where four main disclosures are mentioned in the study such as
materiality concept, inclusiveness of stakeholders, completeness of information and
sustainability context. The next segment explain about break-even analysis and balanced
scorecard approach that help in understanding facts about the company named as Premier
Investments Limited.

20ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
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