Theoretical And Practical Research Of Environmental Accounting In Enterprises

Environmental accounting began in 1970s. In 1971, The Research of Pollution Controlling in Respect of Transferred Social Cost and in 1973 the article Accounting Issues Caused by Environmental Pollution is the ancestors of environmental accounting research. In the beginning of 1980s, more and more countries recognized the serious consequences caused by pollution. Many multi-national enterprises began to combat special budget for environmental pollution. In June of 1992, UN held a meeting for environmental pollution, then in March of 1995 international accounting held a 13th meeting whose the main purpose was for environmental accounting which represented environmental accounting had a clear direction toward thorough research.As for China, we had established more laws and regulations in respect of environmental protection. But we need a more useful accounting direction to deal with environmental issues. In above reasons, we analyze the recognition, measurement, recording and disclosure in terms of environmental accounting study. The whole paper has classified in four aspects:The first chapter, the analysis of environmental accounting study in current situation. We have known the recent development which gives the useful implication of practical research. Then, the purpose, the configuration, the method and the creative ideas have been mentioned at first.The second chapter, the recognition and measurement of environmental accounting. As the core section, it illustrates the problems of recognition and measurement of environmental accounting. In addition, this section takes Chuanhua co, Ltd as an example to analyze environmental accounting issues.First of all, this section begins to illustrate the recognition and measurement of environmental accounting in theoretical aspect in accounting and economics field to illustrate.Secondly, on the basis of theoretical description, the section has depicted the recognition procession.Thirdly, the section considers the effect of new accounting standards in respect of environmental accounting. In particular, fair value is the measurement that has been used widely. Compared with previous accounting standards, the new one emphasizes on accounting information quality in respect of relevance. The most important change is to measure losses caused by environmental pollution.Finally, this section together with practical issues, analyzes the conditions of recognition and measurement of environmental accounting, which requires firstly to solve external cost, make it internally so as to provide relevant management information. Meanwhile, this section takes advantage of practical research, thoroughly analyzes practical issues of recognition and measurement of environmental accounting. Moreover, it takes the pollution accident as an example to establish environmental accounting system.In the third chapter, the environmental accounting cost management. The section uses Activity-based-Costing (ABC) method and Life-cycled-Costing (LCC) method to solve practical problems in environmental accounting. The core concept is how to allocate internal cost and make external cost internally. This Activity-based -Costing is for operating judgment and operation which is a kind of benchmark in aspect of allocating environmental cost. However, environmental accounting needs to consider more elements in respect of externality and timeliness. If these elements are ignored, it is hard to analyze cost procession as a whole. That is the reason why takes Life-cycled-Costing method to expand the scope of production from now to future.First of all, the section analyzes cost management conditions, which makes use of its conception to find cost drivers, together with practical conditions ascribing and allocating cost to serve operation judgment. And then, the section describes the relationship between external pressure and Life-cycled-Costing method. Moreover, there is an emphasis on how to deal with externality. Furthermore, it addresses the probability of the internalized cost.In the forth chapter, the disclosure of environmental information. This chapter illustrates theory and practice in two aspects.First of all, the section summarizes the current ways of environmental accounting information disclosure. Meanwhile, targeting to the need of environmental information, it discusses the relevant elements of environmental report.Finally, this section puts above theories together, targeting by listing enterprises analyzes the current conditions of environmental accounting information disclosure, gives unique ideas and useful suggestions.The creative ideas of this abstract are:First of all, fair value in new accounting standards is playing an important role due to more relevant information provided compared with previous accounting standards. This is the tendency that complies with international accounting standards.Secondly, the case study of Chuanhua pollution accident analyzes fair value step by step, which in a logical procedures combined with accounting theories, is meaningful in respect of empirical study.Thirdly, there is an emphasis on the relationship between Life-cycled-Costing method and external pressure in environmental accounting.Finally, selecting listing enterprises of IPO prospectus as samples, finding the tendency of environmental accounting information disclosure, embodies the current situation of environmental accounting information disclosure.