As the importance
of environmental issues continues to grow, organizations are challenged to
implement effective programs ensuring compliance with environmental laws,
regulations and organization policies.
With the current global interest
in the environment, most organizations have environmental concerns. Some of
the more obvious industries that are affected by environmental issues are
petroleum production, paper and manufacturing.
Environmental accounting
issues abound and are often complex. They are encountered in many areas of
an organization. Property transactions, whether buying, selling or leasing,
may be affected. Other environmental accounting issues include:
- Accounting for routine environmental expenses (waste disposal costs)
- Accounting for pollution prevention equipment
- Financial statement disclosure, and management reporting of environmental
costs
Environmental accounting issues are encountered in virtually every
facet of operating a business, from day-to-day operations, to cleaning up
from prior operations, to acquiring or disposing of property. The cost of
environmental compliance and programs is considered in decisions regarding
future business direction.
All types of businesses and industries,
from manufacturing to service industries, must deal with environmental issues
every day. Make those issues make sense, with the dollars and cents approach
of environmental accountants.
Good job! Don't
feel bad if your summary didn't look exactly like ours. This summary
was adapted from a report by Julie Thompson, the president of the Environmental
Resources Network. Needless to say, Thompson has had a bit of practice explaining
just what environmental accountants can do for their clients!