Abstract
The study aims to determine the requirements for the disclosure of environmental information in the financial statements in light of international accounting standards and to study and determine the degree and nature of disclosure of environmental information in the financial statements of the sample companies, and the importance of environmental information in making decisions about setting plans and objectives and drawing policies that aim to protect and sustain the environment as It represents the comprehensive container of the elements of natural wealth, based on the information announced in the annual reports of the sample companies, which include an industrial and forestry company, and it was selected from the most environmentally sensitive sectors and the most impacting on the environment. Using the content analysis method, which will be the main measurement tool for the research, where the disclosure scale will be prepared using this method and in a similar way to the scale (1982, Wiseman), which includes 18 axes of environmental disclosure within 6 main axes covering all aspects of the environmental performance of the company. The results of the study showed that disclosure in the sample companies is restricted by what is imposed by the standard accounting system with regard to the disclosure of fuel or production waste, as the environmental accounting applications in industrial and strategic companies in Yemen did not take sufficient attention, and this comes as a result of the lack of awareness of industrial companies and their weak contribution to the responsibilities that should be borne in the field of environmental protection and society. This study represents the theoretical framework for understanding the nature of environmental accounting and reporting by providing a detailed review of environmental accounting, in addition to understanding the nature of environmental disclosures for industrial and extractive companies in Yemen and the extent of their application to international accounting standards. The research recommends the necessity of obligating industrial and extractive companies to environmental disclosure due to its low levels in the annual reports they issue, which reflect a state of lack of interest and awareness by the majority of Yemeni companies of their environmental role and responsibilities towards society.
Highlights
Accounting is a profession that has the duty to elevate the internal view of any economic unit and to develop information that clarifies its role within its environment and its contribution to providing appropriate information for making decisions that result in optimal utilization of resources, preservation of the environment and averting danger from it
In addition to its industrial obligations, in addition to its positive role in reducing the environmental effects of its industrial activity, and the research problem lies in the deficiency of the accounting system applied in protecting the environment and this was noted in each of the two summits London and Pittsburgh for G20 leaders in 2009.G20 leaders reinforced the impact of the International Financial Reporting Standards (IFRS) by calling for the implementation of global accounting standards by 2011
The research reached a set of conclusions, the most important of which are summarized in the following points: 1- The study provided a theoretical framework for understanding the nature of environmental accounting and reporting by providing a detailed review of environmental accounting and the history of reporting, in addition to understanding the nature of environmental economies by industrial and extractive companies in the Republic of Yemen, the study sample, and the extent of their application to international accounting standards
Summary
Accounting is a profession that has the duty to elevate the internal view of any economic unit and to develop information that clarifies its role within its environment and its contribution to providing appropriate information for making decisions that result in optimal utilization of resources, preservation of the environment and averting danger from it. Environmental Disclosure Index: Most researchers in the field of environmental disclosure have relied on the coding method as a tool to determine and measure the level of environmental disclosure for industrial and extractive companies in their annual reports (Wiseman 1982 & Commier, et al) When using this method, the focus is primarily on the items and topics related to disclosure, which are important issues for the beneficiary parties, rather than focusing on the number of words or the number of sentences contained in the report to be evaluated. Based on the foregoing, it can be said that the basic hypothesis of the research is accepted, which states the following: The accounting system applied in industrial and extractive companies in the Republic of Yemen provides a certain level of environmental disclosure in their annual report
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