Environmental Accounting and Management Accounting: A Case Study of Premier Investments Limited

Running head: ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
Environmental Accounting and Management Accounting
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ENVIRONMENTAL 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.

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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

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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

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ENVIRONMENTAL 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

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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).