Discussion On Environmental Cost Accounting Of Heavy Pollution Enterprises

With the rapid development of economic,the balance between ecological and economic is unprecedentedly fierce.After The Third Plenary Session of the Eighteenth Party,the promulgation of the new "Environmental Protection Law" and the broadcast of the documentary "Keeping the Green Mountains and the Green Water",the state will pay more attention to the protection of the ecological environment,including the environment and natural resources.This will put a lot of pressure on the high-pollution companies for a strict energy-saving and emission-reduction requirement,and the corresponding expenditures of enterprises will increase sharply.So,it's important to solve the problem that how to scientifically and reasonably perform environmental cost accounting,implement environmental cost control and provide information users with effective environmental cost information.This article selects a representative high-polluting chemical Company L,which is located near the Yangtze River,as the research object.The article tries to construct an environment cost accounting system for the Company L,and provided reference for other chemical companies or high-polluting enterprises.This article uses the method of case study to analyze the domestic and international environmental cost accounting and environmental cost management theory,and summarize two suitable accounting methods for L based on the actual production and operation of L.The two methods are Product Life Circle Method and Activity-based Costing Method.Firstly,the author sorts out the status of production and management and the status of environmental cost accounting of the Company L through field research and interviews,and finds that there are 5 main problems about environmental cost accounting in the company:the lack of a dedicated environmental cost accounting accounts,the incomprehensive definition of environmental costs,the unreasonable allocation of environmental costs,lack of basis for environmental cost control and insufficient disclosure of environmental cost information.Secondly,this article analyzes all environmental costs of Company L according to the entire life cycle of product life cycle,and designs a set of environmental cost account system.It divides environmental costs into three categories:environmental prevention costs,environmental treatment costs,and environmental pollution costs,and confirms,measures and collects the environmental cost items according to the verification and measurement theory.Then,this paper uses the ABC to analyze the cost drivers of various environmental cost items,establishes the corresponding activity and activity cost pool,and allocates the environmental costs in the activity pool to the three main products:Diammonium phosphate,Compound fertilizer and Monoammonium phosphate.Finally,the article designs the environmental cost report,briefly analyzes the differences in product cost after the application of the new environmental cost accounting system and the causes and puts forward some suggestions for environmental cost control.The application of the new environmental costing system will inevitably have an impact on the company's existing cost accounting system and management processes.Mainly in the following areas:the first is the impact on the existing cost accounting system.This imposes higher requirements on the quality of L company accounting personnel,and requires accurate identification of environmental cost items and correct handling.At the same time,due to the fact that the company did not adopt the ABC in its original cost accounting,there was a consistent difference between the method of environmental cost allocation and the original method of product cost allocation.The second is the impact on the company's accounting information system.Since the company has fully launched the ERP system,accounting is performed in computers and the amount of data the company needs to process is very large.Therefore,on the one hand,the company needs to standardize the input method of the original data of environmental costs,and on the other hand it must also reform the existing information system.The third is the impact on the company's production process management.Due to the introduction of the ABC,the concept of resources,operations,and cost drivers were introduced,and requirements were placed on the accurate measurement of resource drivers and operational drivers in the company's production processes,which increased the company's expenditure on measuring instruments;at the same time,due to operations The cost method also imposes higher requirements on the quality of production line employees.This article concludes that the new environmental cost accounting system solves the five major environmental cost accounting problems of Company L.After the application of the new environmental cost accounting system,the product cost of the three major units is 1,079,600 yuan,335,200 yuan,and 588,300 yuan higher than the unit product cost under the original accounting system.Company L's environmental prevention costs and environmental governance costs accounts for the total 85%of the environmental costs,while the top three environmental cost items are sewage treatment fees,R&D expenditures,and depreciation charges for environmental equipment.The application of this set of environmental cost accounting system provides the basis for Company L's environmental cost control,which is conducive to Company L's control of environmental risks and environmental costs,and enhances the company's competitiveness.At the same time,it is also beneficial to provide effective management for internal managers and external investors with the decision information they need.The limitations of this article are reflected in:(1)The establishment of an environmental cost account system is not comprehensive enough and may not cover all environmental costs.(2)Only major cost drivers are considered.However,in reality,the causes of an environmental cost may be manifold;and the choice of cost drivers depends largely on subjective judgment.(3)The study of cost control is not sufficient.The purpose of environmental cost accounting is to control environmental costs and reduce environmental costs;this article has not carefully expanded the content of environmental cost control due to space limitations.(4)The interface between the new environmental cost allocation method and the original product cost allocation method.Because the Company L currently does not fully promote the activity-based costing method in product costing,the environmental costing system designed in this paper adopts the activity-based costing method,which makes the two systems have different consistency problems.Due to space reasons,this article did not elaborate on its impact on the company and its specific solutions.