ENVIRONMENTAL ACCOUNTING.

ITS
NATURE, PURPOSE, NEED AND
INFLUENCE ON COMPANYS FINANCIAL
RESULTS
Finance University under the
Government of the Russian
Federation.

Moscow 2015

OUTLINE

Definition
Management of environmental costs
Toshibas environmental accounting approach
Conclusion
References

Finance University under the Government of the Russian Federation.

DEFINITION
In 1998, the International Federation of Accountants
(IFAC) originally defined environmental management
accounting as:
The management of environmental and
economic performance through the
development and implementation of
appropriate environment-related accounting
systems and practices. While this may include
reporting and auditing in some companies,
environmental management accounting
typically involves lifecycle costing, full cost
accounting, benefits assessment, and strategic
planning for environmental management.
Finance University under the Government of the Russian
Federation.

MANAGEMENT OF ENVIRONMENTAL
COSTS
There are three main reasons why the
management of environmental costs is
becoming increasingly important in
organizations.
First, society as a whole has become more environmentally
aware, with people becoming increasingly aware about the
carbon footprint and recycling taking place now in many
countries.
Second, environmental costs are becoming huge for some
companies, particularly those operating in highly
industrialized sectors such as oil production.
Third, regulation is increasing worldwide at a rapid pace,
with penalties for non-compliance also increasing
accordingly.
Finance University under the Government of the Russian Federation.

TOSHIBAS ENVIRONMENTAL ACCOUNTING

APPROACH
With a view to promoting environmental
management, Toshiba Group is working to
introduce an environmental accounting approach
aimed at collecting accurate data on investments
and
costs
required
for
its
environmental
conservation initiatives and analyzing the collected
data in order to reflect investment effects and cost
benefits in managerial decision making.

Finance University under the Government of the Russian Federation.

ENVIRONMENTAL ACCOUNTING AS A TOOL

FOR ENVIRONMENTAL MANAGEMENT

Source: https://www.toshiba.co.jp/env/en
Finance University under the Government of the Russian Federation.

BREAKDOWN OF ENVIRONMENTAL COSTS BY

BUSINESS SEGMENT (FISCAL YEAR 2013)

Source: https://www.toshiba.co.jp/env/en

Finance University under the Government of the Russian Federation.

COST BENEFITS OF MEASURES FOR CLIMATE

CHANGE MITIGATION AND WASTE DISPOSAL

Source: https://www.toshiba.co.jp/env/en
Finance University under the Government of the Russian Federation.

ENVIRONMENTAL COSTS (UNITS: MILLION

YEN)

Source: https://www.toshiba.co.jp/env/en
Finance University under the Government of the Russian Federation.

CONCLUSION
Many companies need external help in creating or improving
their EMA, as those skills are not widespread and rarely available
internally. EMA has to be tailored to the special needs of the
company rather than be applied as a generic system. The costs
and benefits of building such a system has to be considered and
the scope of the EMA properly selected. Building the EMA
incrementally is a common implementation strategy among
companies.

Finance University under the Government of the Russian Federation.

REFERENCES

List of references
Ralph Adler, Management Accounting - Routledge, 2013
M. Mongiello, Management accounting - LSE, 2013
Michael Ehrhardt, Eugene Brigham, Cengage Learning, Corporate
Finance, 2010
Management and Cost Accounting with Myaccounting Lab Access
Card, Bhimani Alnoor, Reader in Accounting and Finance Department
of Accounting and Finance Alnoor Bhimani, Financial Times Prentice,
2011
Jacqueline Birt, Keryn Chalmers, Suzanne Byrne, Albie Brooks, Judy
Oliver, Business Reporting for Decision Making - John Wiley & Sons,
2012
Annette Becker, Corporate considerations for nature the motivation
behind environmental accounting - GRIN Verlag, 2013.
https://www.toshiba.co.jp/env/en
Finance University under the
Government of the Russian
Federation.

THANK YOU FOR ATTENTION!

Finance University under the Government of the Russian Federation.