ACCA F5教学.ppt

What is environmental costs Environmental costs comprise both internal and external costs and relate to all costs occurred in relation to environmental damage and protection. Internal costs are those undertaken by the firm in terms of the environment damage and protection External costs result from corporate activities but are not internalised via regulations and prices are not considered. Environmental damage protection costs Environmental damage costs relate to the cost of pollution of environment wastages of the natural resources Emissions of greenhouse gas effluence Consumables(wood)/water energy consumptions (inefficient usages) Environmental protection costs include costs for prevention, disposal, planning, control, shifting actions and damage repair that can occur at companies and affect governments or people The corporate environmental protection expenditures may not directly related to the environmental performance of a company Definition of EC US environmental protection agency (1998): Conventional costs Potential hidden costs (captured but may hidden within general overheads) Contingent costs (future clean-up costs) Image relationship costs The United Nations Division for Sustainable Development (UNDSD): Cost incurred to protect the environment, eg. measure to prevent pollution Cost of wasted material, capital/labour, eg. inefficiencies in the production process Environmental Management System: ISO 14000 Gray and Bebbington listed the functions of environmental management systems. Controlling environmental costs environmental management systems environmental management systems 2. Accounting for environmental costs Input/output analysis Flow cost accounting Environmental activity-based accounting Life cycle costing Input/output analysis operates on the principal that what comes in must go out. output is split across sold and stored goods and residual (regarded as waste) Measuring these in physical quantities and monetary terms force b