Environmental Management Accounting Disclosures

Sustainability development is a hot issue facing corporations. Studies showed that financial accounting could not fully support sustainability development since the highly regulated financial accounting had specific accounting rules that resulted in incomplete capturing and presentation of environmental costs. In the relatively less regulated accounting application, the management accounting, studies found that environmental costs were usually absorbed in overheads. The communication between accountants and environmental experts were usually limited and this lead to misallocation or incorrect calculation of environment costs. As a result, managers did not have the correct environmental information for managing environmental costs for sustainability development. "Environmental Management Accounting is the identification, collection, analysis and use of two types of information for internal decision making:-1. Physical information on the use, flows and destinies of energy, water and materials (industry wastes) and2. Monetary information on environment - related costs, earnings and savings.

Autorentext

Dr. Ashish Porwal is a Doctorate from Mohanlal Sukhadia University, Udaipur (Rajasthan, India). He has worked as researcher and consultant and has extensive experience of teaching students of UG, PG and professional courses. Currently he is pursuing LLB from Mohanlal Sukhadia University.