Environmental Management Accounting: Challenges, Barriers, and Opportunities

Running head: MANAGEMENT ACCOUNTING
Management Accounting
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1MANAGEMENT ACCOUNTING
Executive summary
The Environmental management accounting refers to a vital information source that helps in the
process of decision-making in the company management. In various organisations there exists a
dynamic as well as detailed technique of processing the data related to environmental costs
which the organisation issued mistakenly for the purpose of environmental management
accounting or EMA. At present the various organisations does not utilise an extensive options
range that is been provided by the environmental management accounting. The study in hand
discusses the reason for the companies not introducing the environmental management
accounting as a technique of the information system as well as taking advantage of the
opportunities that is being provided by EMA. Practically there exist several barriers that protect
the implementation process of environmental management accounting in the company’s
information system. There exists barriers that were identified in the context of EMA, the study
discusses the same. In addition to that the opportunities of the implementation of the EMA in the
companies are also discussed.

2MANAGEMENT ACCOUNTING
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Concept of EMA..........................................................................................................................3
Challenges faced by EMA...........................................................................................................3
Barriers of EMA..........................................................................................................................3
Opportunities of EMA.................................................................................................................3
Conclusion.......................................................................................................................................3
References........................................................................................................................................3

3MANAGEMENT ACCOUNTING
Introduction
The environmental Management Accounting or EMA is an accounting technique that is
used for describing the various aspects the accounting field. The primary focus of the EMA is to
act as a tool of management accounting that would help in taking the businesses internal
decisions (Welford 2016). This also initiates the proactive management activities that are related
to environment. The development of EMA was mainly developed for the process of recognizing
the challenges that were being faced by the traditional approach of the management accounting
that used to deal with the environmental costs along with its impacts and consequences (Saeidi et
al. 2018). The challenges that were pointed out were the inaccurate cost allocations that cannot
be found back to process lines, products or processes. There also exists inaccurate accounting of
wasted raw materials during the process of production. The each of the EMA aspect is a general
type of accounting that serve as the foundation.
Discussion
Concept of EMA
The accounting tool of EMA offers prospective advantages to industry, that includes the
capability managing and track the use and flows of energy and materials more accurately. The
international website of EMA reports appropriately the relevant identification, estimation,
allocation, and management or reduction of costs (Bennett and James 2017). The Environmental
performance can be improved and supported with the help of more complete and relevant
information. This information can also improvise the reporting as well as measurement of the
environmental information to the public.