Study On Contstruciing The Environmental Cost Accounting System Of Enterprises

Being one of the traditional industries of our country, textile printing and dyeing isamong the most heavily polluting businesses. Its pollution problems involve the entireindustrial chain, casting several negative effects on not only the environment, but also thephysical well-being of company staff and consumers. Nowadays, the environmental laws ofour country is imposing an increasingly rigid constraint on environment polluting industries,which also have to face a more strict inspect from environmental organizations and a risingenvironmental consciousness among consumers. All these factors force enterprises in theseindustries to incorporate environmental concerns into their strategic goals. Obviously, thisrequires enhanced environmental management, disclosure of environmental information aswell as a strong sense of social responsibility. In the construction of an enterprise’senvironmental management’s system, environmental accounting, the most crucial process,serves as an information and control system, with the environmental cost accounting being oneof the most essential elements of it.While focusing on textile printing and dyeing enterprises, this paper seeks to construct anenvironment cost accounting system for enterprises, in which the integration of environmentalfinancial accounting and environmental management accounting is incorporated.The first section expounds the research background, research significance, researchcontents, research methods as well as the technical route. It also provides a glance of thecurrent situation of environmental cost accounting research by offering a literature reviewabout this field. The second section, the theoretical basis of environmental cost analysis as well as itsaccounting principles and accounting object are delineated.The third section offers an insight into the core issues in the environment cost accountingsystem including confirmation, measurement, recording and reporting. We suggest applying amethod incorporating the activity-based costing and life-cycle method in the collection anddistribution of environmental costs. In detail, this method requires adding the environmentalcosts and a series of detailed account to the original account system as well as recording thecost data of environmental management and compiling external financial reporting andinternal management accounting report.The fourth section applies the environment cost measurement to ABC companies inorder to verify the feasibility of the environmental cost accounting system.The last section provides some suggestions concerning the optimization of theenvironmental cost accounting in our country. Also, in this section we conclude and highlightseveral weaknesses in our argument.