Von Bischhoffshausen divides the concept of environmental accounting into three main meanings: National Accounts, Financial Accounting and Administrative Accounting.
The National Accounts have a country level scope that is for external users, the term environmental accounting can refer to the macroeconomic scope of the national accounts. It has been recognized that the PIN (Net Internal Product) is limited by not taking into account the consumption of natural resources that are part of natural capital. Most feasible would be that an environmentally adjusted PIN could be calculated accurately, discounting the degradation of the environment and consumption of natural resources.
Financial Accounting, in addition to issuing financial reports (of financial situation and income statement) refers to the evaluation and public information about significant environmental costs and liabilities, however, no standard has been issued to report the way in which such reports should be made. Administrative Accounting is the process of identifying, collecting and analyzing information to internal users for decision-making at the managerial level.
Administrative environmental accounting focuses on the use of information on costs and performance of strategic environmental and operational decisions. Alier (2008) says that as the economy grows, consequently more materials and energy are used. Conventional economics and traditional accounting do not subtract from environmental liabilities, as they are invisible. On the other hand, the ecological economy criticizes the conventional economy because it forgets the nature of economic accounts, both for companies and for government. Ecological economics proposes to consider biological, physical, chemical and social aspects.
Larrinaga points out that the growth of social and environmental commitment by companies has brought an appeal to the use of environmental accounting practices, making it a necessary element for organizational change.
The GRI (Global Reporting Initiative) is an international organization that aims to encourage companies to issue Sustainability Reports as a tool for planning, measuring, evaluating and communicating performance results in social, economic and environmental aspects.
According to Geba et al., The "GRI Standards are structured as a set of interrelated Standards, developed mainly to be used together and to help organizations prepare sustainability reports based on the Principles to prepare reports focused on material issues". Highlighting the concept of the environment, these companies seek to register activities, transactions or projects in some way, doing so in an accounting structure in what would be a social balance and / or sustainability report, among others.
According to Ramos et al., The presentation of the information can be classified into three groups:
- Specific indicators: These indicators measure the performance of the company with its community, in the environment area; It measures the expenses of the company, the expenses destined to its degradation above the legal obligations. Balances of society: This instrument provides information about the repercussions that employees have, such as: noise, heat, vibrations, radioactivity; and also about the community in general and the environment, such as: pollution of the atmosphere, of water, excessive use of natural resources. Ecological balance: It is an accounting proposal that designs new financial statements prepared to reflect environmental impacts.
Here is an example of the structure of a Social Balance:
Table1: Social Balance
Source: Ortiz, R. (2010)
Summary
At present, man has been in charge of disposing of natural resources in an uncontrolled way, having as a consequence the environmental problems that we live today. Unfortunately, there are no legislations that indicate how to measure the environmental impact of accounting decisions, nor how should the sustainability reports of environmental accounting be quantified or presented; however, there are environmental provisions that are a guide that companies can follow to present information on their economic, environmental or social impacts. In this investigation it will be revealed which are some organisms that establish it and some concepts of ecological accounting.
This research aims to study the existing provisions of information regarding the environment from accounting. Important concepts will be defined, as well as mention about some organism or laws that are related to ecology.
Keywords. Environmental accounting, sustainability.
References
- Alier, JM (2008). Ecological conflicts and environmental justice. Papers on ecosocial relations and global change, 103, 11-28.Geba, NB, Bifaretti, MC, Catani, ML, Sebastián, MP, Roellig, Inés, Giusio, Guadalupe. (2017). Social and environmental accounting: Contributions and financial commitments of economic organizations for the Sustainable Development Goals. Mexico: Faculty of Economic Sciences, Larinaga González, C. (1995). The relationship between accounting practices and the environment Ortiz, R. (2010). Social Balance. Model Comparison. Escritos Contables y de Administración, 1 (1), 3-19.Ramos, STC, Espinosa, PR Ó. R., Mesa, AP, & López, KU (2007). Evaluation of financial accounting and environmental management in tourist companies. Theory and Praxis, (3), 173-185.Von Bischhoffshausen, W. (1996).An overview of environmental accounting. Contaduría Universidad de Antioquia, (29), 139-170.
