Environment reporting and business strategy

Subject Areas : Water and Environment

Esmaeel Ghafari ¹

1 - Islamic Azad University, North Tehran Branch

Received: 2008-05-19 Accepted : 2008-08-26 Published : 2009-03-21

Keywords: Environmental accounting, Environmental management accou, business method, environmental method, performance report,

Abstract :

Environmental accounting has been recentlydeveloped as one of sub-divisions of accounting.Due to growth of society concentration onenvironmental issues, accounting takes essentialroles on performance measurement. Being awareof environment condition leads a business unit toactive environmental performance.In this article, the author pays attention to integrityof environmental methods with business methodsand avoids investigating the way of dealing withenvironmental accounting in financial accountingstandards. He also considers intra-organization andextra-organization impacts which cause reductionof operation and investment expenses of pollutioncontrolling equipments and determining capitalinvestment evaluation from one side, and causeregulation codification by governments andtaxation results from other side, via examiningbusiness strategy including programs, takingmanagement delicate decisions, supporting andtraining.Taking environmental issues into considerationin last years, has been extended into standardcodification field too; standards of AmericanGovernmental Accounting Standard CodificationBoard and IFAC guides are obvious examples ofit.The following topics will be discussed in thearticle:1- environmental elements of business strategy2- providing essential performance report3- identifying required multifunctional measuringskills4- Collecting and analyzing required data.

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