1
Department of accounting, Tarbiat Modares University, Tehran, Iran
2
PhD student in Accounting, Faculty of Management & Economics, Tarbiat Modares University, Tehran, Iran
10.22034/iaas.2020.119841
Abstract
EMA, Environmental management accounting represents a combined approach that provides for the transition of data from financial accounting, cost accounting and mass balances to increase material efficiency, reduce environmental impacts and risks and reduce costs of environmental protection. EMA is performed by private or public corporations, but not by nations and has a financial as well as a physical component.
The core focus of environmental management accounting is assessment of total annual environmental expenditure on emission treatment, disposal, environmental protection and management. In addition, and that is new and challenging for most companies, the material purchase value of all non-product output and its production costs are added. This total sum often provides a frightening picture of total annual costs of inefficiency and gets companies to improve their information systems and material efficiency options.
In this study, we define principles and procedures for EMA, with a focus on techniques for quantifying environmental expenditures or costs, as a basis for better controlling and benchmarking purposes. The methodology excludes costs external to the company (so-called externalities, e.g. environmental and social effects that occur to the general public), but focuses on comprehensive assessment of direct annual expenditure on emission treatment, environmental protection and management as well as wasted material and energy input (efficiency losses in production).
Sepasi, S., & Ramezani, M. J. (2020). The Use of Environmental Management Accounting (EMA) for Identifying Environmental Costs. Accounting and Auditing Studies, 9(35), 37-48. doi: 10.22034/iaas.2020.119841
MLA
Sahar Sepasi; Mohammad Javad Ramezani. "The Use of Environmental Management Accounting (EMA) for Identifying Environmental Costs". Accounting and Auditing Studies, 9, 35, 2020, 37-48. doi: 10.22034/iaas.2020.119841
HARVARD
Sepasi, S., Ramezani, M. J. (2020). 'The Use of Environmental Management Accounting (EMA) for Identifying Environmental Costs', Accounting and Auditing Studies, 9(35), pp. 37-48. doi: 10.22034/iaas.2020.119841
VANCOUVER
Sepasi, S., Ramezani, M. J. The Use of Environmental Management Accounting (EMA) for Identifying Environmental Costs. Accounting and Auditing Studies, 2020; 9(35): 37-48. doi: 10.22034/iaas.2020.119841
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