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    Strategic Management Accounting

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    Critically evaluate what is environmental accounting(definition):
    -what it is
    -why it matter
    -how it is done

    How do organizations integrate environmental policy in business strategy.
    -The interdisciplinary approach to environmental accounting
    -Producing environmental accounts
    -Training environmental auditors

    How do organizations integrate the environmental department with business functions
    -Environmental Management

    Critically evaluate business use of environmental accounting costs.

    Critically evaluate the evolution of environmental reporting in the annual report.

    Critically evaluate the evolution of social accounting in the annual report.

    Discuss environmental policy versus environmental regulation.

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    Solution Preview

    Please refer to the attached file for the response.

    Environmental accounting is an important tool for understanding the role played by the
    Natural environment in the economy. Specifically, it accounts for both the contribution of natural resources to economic well-being and the costs imposed by pollution or resource degradation.
    Sometimes referred to as "green accounting", "resource accounting" or "integrated economic and environmental accounting", it involves the modification of the System of National Accounts and incorporates the use or depletion of natural resources.

    Environmental accounting which is also a movement to reform the Statement of National Accounts (SNA) was made into being because the accounts do not include the full economic value of environmental resources or the role which they play in the economy's productive activity.

    Some of the elements missing from the accounts include:

    1. Environmental expenditures. Expenditures to protect the environment from harm, or to
    mitigate that harm, cannot not be identified from the data in the accounts. Such
    expenditures include the costs incurred to prevent environmental harm, such as pollution control equipment purchased by factories or catalytic converters in cars. They may have been parts of the existing categories of accounts but they cannot be disaggregated to highlight the costs incurred to prevent or mitigate environmental degradation.

    2. Non-marketed goods. These are goods which are not sold, but which are of value; e.g., fuel wood and building materials gathered in forests, meat and fish captured for consumption, and medicinal plants.

    3. Non-marketed services. These are unsold services, such as watershed protection by forests or water filtration by submerged vegetation. These are not ...

    Solution Summary

    The solution critically evaluates what is environmental accounting.