The Concept Of Environmental Accounting

THE CONCEPT OF ENVIRONMENTAL ACCOUNTING

Introduction

One of the most important topics that are currently discussed, worldwide, is the care of the environment. The human being relates to this, constantly interacting with him. There is no person on earth who does not use it and affects. To understand the latter, the following could be given as an example: people breathe, this consists of the oxygen entrance to be able to live, which obtains from the environment, and in turn they expel carbon dioxide.

In their beginnings, human beings used the natural resources that the environment gave them to live-overlook. As time went by, not only these resources were used to live-over, but they were giving them more and more uses, adapting them, using them and transforming them to meet people’s wishes, and not only their needs. That is why the environment today, and the natural resources that are found in it, are very important elements for a community to continue to progress and develop.

We must understand the importance of the environment and, knowing that any damage caused in this (consciously or unconsciously) is harmful to society as a whole. From the compression of its importance, it is that around the world and over time, laws, guidelines of action and ways of achieving, or trying to achieve, that the impact that the human being has on the environment isthe least possible.

Currently, organizations are more aware of the effects that their activities cause on the environment, and give it more importance than in the past, assuming commitments, as many of prevention and correction.

It is here where we see the environmental responsibility of the entities that seek to ensure sustainable development.

For all that above, it is that the entities seek (or should) reflect in their accounting the environmental impact they generate, both positive and negative.

In this work we will provide basic concepts on environmental accounting and practical exercises, based on the fact that accounting is one and that seeks to generate accounting reports to meet the needs of its users.

Research objectives

 General objectives

The work will have as a general objective, to carry out a study guide on environmental accounting, to use readers to internalize the subject, in the clearest and simplest way possible, making it easy to understand.

Specific objectives

Get the reader:

• Know that it is accounting and environmental problems.
•  Understand the basic concepts of environmental accounting.
•  Differentiate the environmental assets and liabilities from the rest.
•  Measure the environmental elements of the heritage of an entity.

Environmental Issues

During the last decades human beings have evolved industrially and technologically in an exponential way, transforming ecosystems at an accelerated pace, and generating irreversible damage to the planet. This development has contributed to economic improvements and the well -being of individuals, but in an evident detriment of ecosystems, not being able to ensure the services of these to future generations.

The greenhouse gases that occur naturally, are responsible for allowing the habitability of the planet, being responsible for preventing a certain amount of heat that the sun radiates to the earth escapes to space. Industrialization, deforestation and large -scale agriculture that man is carrying out as a result of population and economic growth, have triggered the accumulation of these gases in the atmosphere at dramatically worrying levels, because they are responsible for the increase inat the global temperature, and the climate change produced.

The World Meteorological Organization (OMM) and the UN Environment, in order to provide scientific objective information, created the IPCC (Intergovernmental Expert Group on Climate Change). In 2018 this group published a special report in which it enunciates the climatic impacts that could be avoided from taking a maximum of a temperature increase of 1.5ºC (instead of the maximum of 2ºC). And, in addition, it refers to the consequences of climate change that we are suffering, by the global warming of 1ºC: "… with more extreme weather conditions, growing sea levels and a diminishing sea ice in the Arctic, among other changes." . Reasons why this report also establishes the guidelines to follow, mentioning that rapid and high -range transitions will be necessary throughout the earth, decreasing 45% by 2030 (compared to 2010) global net emissions of carbon dioxide (CO2) of human origin, and that continue to decrease. CO2 is the most abundant and represents about two thirds of all types of greenhouse gases, mainly resulting from fossil fuel burning.

The environmental problem has been accentuated today, but its international background dates back to the year 1972 in Stockholm, where the first conference on the environment and the development held by the United Nations takes place;where climate change was not priority, but that is when world leaders agree to meet every 10 years and evaluate the state of the environment, and the impact it could have on it, economic development. It is in the attempt to make economic development and the preservation of the environment, where the concept of "sustainable development" arises.

•  Social axis: composed of people as a whole, which have different needs and desires.
•  Economic axis: it refers to what people produce and generate to meet their needs and desires.
•  Environmental Axis: There is the context where society is immersed.

We see then, how environmental problems comes into play, and how people interrelate with the economic development of people. Establishing in this concept an inseparable union, yes in the process of our growth as civilization we do not want to compromise future generations and, in addition, ensure our own quality of life.

Environmental accounting

Organizations carry out activities, and on the way to their development, both socially and environmentally interact. They are agents of change, influence their environment, and the environment influences them. As an example of reality we can mention the following news: a well -known fishing factory in the area, generates a positive social impact by providing around 120 jobs, but, on the other hand, last year it was closed when the continuous turnaround was foundof pollutant effluents to the Chubut River.

We can say then that organizations generate an impact, and this impact must be susceptible to being collected by the accounting information system. Companies must assume responsibility for these modifications that generate in their environment, the so -called "social responsibility" of the entities.

Dra. Carmen Fernández costs at work "The conceptual framework of environmental accounting. A proposal for the debate, ”defines environmental accounting such as:“… the part of the applied accounting whose purpose is the relationships between an entity and its environment."

As accounting is the main information system of the entities, it faces the complex challenge of meeting the multiple and new demands of users of accounting information. From the subject that concerns us, there are many interested in knowing the behavior of the entity to the environment, as are, for example: the State, customers and current or potential investors. But we must say that today is society that demands responsibility, care and preservation of the environment.

Then, accounting must be able to collect and measure the environmental effects of an entity, for its subsequent registration and/or exposure, otherwise the financial and profitable situation of its activity would not be properly measured. In addition, if the environmental impacts were not reflected in the financial statements, the requirements that the information must meet, established in our standards, specifically in the conceptual framework of the R.T. 16, such as essentiality, approach to reality and integrity.

We must take into account that there are many professionals who defend that accounting are divided into segments or branches such as patrimonial or financial accounting, management accounting, economic accounting, government accounting and social and environmental accounting, in which each segment is somehowalien or different from the other, providing information separately.

conclusion

In this work we consider accounting as one, that is, without dividing it into segments, and must provide information together with all the issues that cover the aforementioned segments, but without making division of them. Therefore, environmental accounting is not a branch of accounting, but the accounting in general, should provide information on the environmental processes of which the issuing entity is part. In this way, the environmental reports will be more relevant when preparing accounting reports, because environmental accounting would not be another segment, but would be part of accounting itself, making its application more importance.