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Management Accountant Essay

   

Added on  2020-04-13

16 Pages4108 Words39 Views
Running head: MANAGEMENT ACCOUNTANTManagement AccountantName of the StudentName of the UniversityAuthor Note

1MANAGEMENT ACCOUNTANTIntroduction A variety of abnormal and natural phenomena has been raised because of populationgrowth and steadily increasing industrial development, including acid rain, global warming, anddepletion of the ozone layer, which has result in environmental deterioration during the recentfew decades, as a result, it has aroused worldwide social attention as one of the largest threats(Abdallah,2016). It is becoming serious for stakeholders to add environmental accounting as aconsideration. According to Amiruddin, Environmental accounting is a important aspect since itconveys to the stakeholders of the company about the information that the environment shouldbe protected. It is essential for the companies to engage in environmental managementaccounting for the sake of meeting the social requirements, in order to achieve environmentalsustainability, focusing on technical innovations particularly (Armstrong, 2014). This essay willdiscuss that the environmental management accounting has been awarded and concernedcrucially by evaluating the benefits and limitations to the business and its stakeholders; also, itshould be concerned by management accountants as imperative.There are two main aspects can demonstrate the environmental management accounting has to be considered cautiouslyThe first one is the general awareness of environment consideration and protection,which has been continuing increased during last decades. (Banerjee, 2014) stated that it hasgenerated a broad range of actual and potential accounts of organizational interactions withphysical environment and social responsibility caused by the development in the social and

2MANAGEMENT ACCOUNTANTenvironmental reporting system in the environment over the last 40 years. He claimed that“accounts of sustainability “is a possible topic which may mention by “stakeholders” during theorganizations speaks in 1990s, and it is deliberately or not drew our attention (Burns, Warren &Oliveira, 2014). The resources in this world is finite for both environmental and financial, basedon this, environmental ‘protection and conservation’ has been seen as a necessary considerationwhich generates one aim to encourage ecologically sustainable development, therefore, in orderto spend limited environmental budgets efficiently to achieve highest possible benefit for theenvironment, it is obligatory for companies and governments to take it seriously conforming to(Cokins, Cherian & Schwer, 2015). The development of environmental awareness for the business is a graduallyadvancement during the last few decades. (Deegan 2017) related that sustainability has become aleading position for the government future construction and development, since the publicationof The Brundtland Report in 1987. After 1987, ‘sustainable development’ has been recognized asa growing emphasis for the business which is pointed so as to meet the needs the present withoutaccumulatively costing the environment, economic, and society in the future. In other words, thebusiness owners need to meet their own needs based upon reducing the impact on the socioeconomic and environmental aspects along their lifecycles. However, Nyquist (2016)(secondaryfrom Ensuring Sustainability: A Preliminary Study of EMA, argues that many companies rarelydisclose the ‘real’ information about the environmental issues on the reporting list in theirfinancial calculation systems. Those costs for the environmental care in all probability be“hidden” under overheads (IFAC, 2015).

3MANAGEMENT ACCOUNTANTAccording (DRURY, 2013) to it has been found in most parts that the information aboutmanaging accounting information is for internal intention which is virtually beyond theconsideration of external use. One option is incorporating the legally-binding with companies’ performance andintensifying the degree of implementation regulation, which should become the main point ofcarrying out process the development and implement about environmental managementaccounting. There are some relevant regulations have been introduced: According to IFAC, abusiness’s sustainability development acquire the sufficient details about environmentalmanagement costs which generated from each operation parts. In 1998, the society for theInternational Federation of Accountants (IFAC) has defined the environmental accounting whichmeans the management of the performance of the environment and economic performance so asto develop and implement appropriate measures relating to the accounting systems. This includesthe reporting and auditing of the companies, thus it is typically involved with lifecycle costingand the various benefits of assessment and strategic planning in this case stated from ACCA. TheUS Environmental Protection Agency(EPA) refers that carrying out the full cost accounting(FCA) is one of the most essential actions should be taken by companies. Fully implementingFCA points out that the costs should be allocated properly with a product or product line nomatter it is direct or indirect (Ho, 2014). The Japanese Ministry of the Environment’senvironmental accounting proposes some guidelines which identify the cost categories shouldinclude deliberations of business areaclaims that the significance of social reporting (CSR) andsustainability reporting (SR) has been gradually mattering by more and more companies inrecent years. Social reporting is based on legitimacy theory, which has to correspond withvarious stakeholders expectations and intending to gain the trust of stakeholders therefore obtain

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