Abstract
In the past, environmental issues were often ignored by both, large companies and small medium enterprises. However, accounting for the environment or the acronym “Green accounting” is receiving increased attention in the recent times. Many companies, particularly small medium enterprises (SMEs) are now interested in being “green”, as many investors place a high value on environmental responsibility. Many environmental costs can be significantly reduced or eliminated as a result of business decisions, ranging from operational and housekeeping changes, to investment in greener process technology to redesign processes or products. Industry and the green movement are tilting towards consensus on the pivotal concept of sustainable development. Better natural resource and green accounts would provide valuable insights into the interaction between the environment and the economy. However, implementing green accounting in organization such as SMEs in Malaysia, results in resistance or ignored due to some reasons such as lack of awareness, lack of ethical education, etc. This paper highlights the issues surrounding the firms green accounting in financial reporting. The key goal of this paper is to outline a set of green accounting measures that are to be addressed in environmental management accounting system of a firm.
Highlights
The key goal of this paper is to outline a set of green accounting measures that are to be addressed in environmental management accounting system of a firm
Green accounting is related to environmental information and environmental eco-auditing systems [1] and has been defined as ‘the identification, tracking, analysis, and reporting of the materials and cost information associated with the environmental aspects of an organization [2]
In Malaysia the green accounting is considered at an infant stage because, the implementation of green accounting in organizations such as small medium enterprises (SMEs) in Malaysia, results in resistance or ignored due to some reasons such as lack of awareness, lack of green and ethical education and so on
Summary
Green accounting is related to environmental information and environmental eco-auditing systems [1] and has been defined as ‘the identification, tracking, analysis, and reporting of the materials and cost information associated with the environmental aspects of an organization [2]. The International Federation of Accountants discusses green accounting as “the management of environmental and economic performance through the development and implementation of appropriate environment related accounting systems and practices; while this may include reporting and auditing in some companies, green accounting typically may involve to the life cycle costing, full cost accounting, benefits assessment and strategic planning for environmental management”. The green accounting systems have the dual purposes of managing and improving the financial environmental performance of an entity. It can consider how organizational operations impact environmental systems and issues [5]. YACOB conscious companies have already discovered that they can generate business strategies to help them reduce their carbon footprint, minimize their environmental impact, make the best use of natural resources, become more energy efficient, reduce costs, and exhibit social responsibility all at the same time [6]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
