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Environmental Accounting in United Arab Emirates - Assignment Example

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Enter university logo Course name: Course code: Environmental Accounting in the United Arab Emirates Name: Student ID: Instructor name: Date: Semester: Environmental accounting in United Arab Emirates Introduction Environmental accounting is part of non financial disclosure aligned to best practice in corporate governance…
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Environmental Accounting in United Arab Emirates
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Environmental Accounting in United Arab Emirates

This is of significance especially when the company intends to attract new investors and retain shareholders through confirming confidence in its stability and transparent management practice. Globally several federal regulations exist targeting to improve practice of environmental accounting and disclosure of vital information among the business community. These include i. The comprehensive environmental response, compensation and liability Act (CERCLA) 1980 which requires corporate dealing with potentially harmful substances to incur the cost of remediation. ii. Resource conservation and recovery Act(RCRA) 1976 which establishes responsibility for monitoring, transportations, treatment, storage and disposal of potentially hazardous substances iii. The clean air Act 1990 which seeks to reduce the amount of harmful gaseous emissions disposed by corporations (Farouk, Cherian &Jacob 2012, p.1-8) Besides these several other environmental regulations have been developed especially with emerging concern of environmental cost of manufacturing. While in some regions, these are compulsory requirement the AUE region lags behind in implementation. Being a developing market the region is at the initial stage of implementing good corporate governance practice among stakeholders with voluntary disclosure being embraced by companies that seek to impress investors and shareholders. This report focus on the environmental accounting issues and legal frame work for environmental protection provided for in the UAE. The paper will also discuss on the implementation of the disclosure practices in the emerging markets in UAE. The information applied has been collected form secondary sources limited to current practice level and improvement as suggested by regulations. Environmental accounting Effective accounting ensures a reliable flow of transparent, comparable and consistent information about the environmental cost. Within the AUE compliance to financial disclosure is regarded as a requirement hence majority of organization provide financial accounting report. Lack of regulation demanding non financial reporting allows management and boards to release information at their discretion. Environmental accounting refers to the process of identifying and creating awareness regarding cost related to maintaining a sustainable ecosystem which in turn helps in identifying techniques to reduce such cost. (Farouk, Cherian &Jacob 2012, p.1-8) Green accounting tools are used to determine environmental cost due to organization operations such as emission of green house gases, depletion of natural resources and environmental degradation. It is the collective social responsibility of the government and business entities to adopt responsible behavior through monitoring eco-system degradation and controlling the occurrence of possible disasters associated with their activities. Corporate environmental reporting through the lens of semiotics This is the first paper obtained from ProQuest. The main objective of this study was to analyze the structuring of environmental accounting information by corporate organizations in order to gain the implied report meaning. A report reflects qualitative survey conducted for selected companies in Malaysia and Australia. Around 50 companies within the Asia-pacific region were sampled, and their financial reports analyzed ... Read More
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