GREEN MANAGERIAL ACCOUNTING OF THE

ENVIRONMENT
Doina ALDEA
Bucharest Academy of Economic Studies
Drago ION
Craiova University
E-mail: romexcont@yahoo.com
ABSTRACT
Starting from the ecological calamities that are accentuating in the last period, and they are
leading to the natural resources disappearance, some vegetal and animal species disappearance,
economical entities should introduce the natural environment management on the two planes
strategic and operational!
"he accounting professional, indifferent if he is accounting e#pert, management controller,
financial auditor or normali$ed, he should %e concerned a%out the inclusion in the content of his
mission in practice, the green accounting concept! As a part of the green accounting is also
included the managerial accounting, which must %e orientated on providing the necessary
information for the economical decisions regarding the investments, the new products launch, the
production level and structure! Any economical entity in the actual development stage of the new
economy, ecological economy, should regard, in the preparation of the decisions related to
development, to the environmental costs!
"he impact of the organi$ation activity to environment, is the su%&ect of the green accounting at
the entity level, and the national level, green accounting has the su%&ect, the national economy
impact to the environment!
KEYWORDS
managerial accounting, green accounting, added value, new economy, environmental costs,
decision!
INTRODUCTION
Most countries are concerned with the develoment of the new !reen economy
followin! the devastatin! ecolo!ical crisis in the whole current ecoshere. Events such as
environmental catastrohes" extinction of the certain secies of animals and lants" more
ronounced reduction of the natural resources have led the decision to introduce
environment mana!ement in the two lans of the economic entity level: oerational and
strate!ic.
Socio-economic su#system" as a art of the Ecoshere re$uires efforts to maintain or
increase economic and material efforts to increase disorder in the Ecoshere.
Condition for sustaina#ility is that no material consumtion and no waste roduction should
not #e lar!er than Ecoshere roduction caacity of !oods and assimilation of sewa!e.
Entities that ma%e investments in environment rotection resultin! increases in value
added from year to year instead of one who ne!lects environmental investments are
enali&ed #y the social artners and investors.
Startin! from the interests of each entity to increase value-added strate!y is interest for
environmental mana!ement. 'his is the interest of all entities re!ardless of the si&e and
economic sector in which they oerate.
'he issues resented a#ove led to the need for environmental accountin!" !reen
accountin! resectively.
(reen Accountin! users are #oth internal and external ones. )nformation on !reen
accountin! for the external users is in the financial statements" develoin! reorts
information on environmental olicy. )nternal users *mana!ement entity+ receive
information from the internal !reen accountin! whose o#,ective is" to rovide useful
information in decision ma%in! on environmental costs.
MATERIAL AND METHODS
-esearch methodolo!y is #ased on a multidiscilinary aroach to !eneratin! advanced
environmental" economic" social. Materials for study are drawn from the rofessional
literature and national and international ractice. All the results and conclusions will have a
articularly uni$ue" #ut may #e alied #y all entities. Also" the results will #e analy&ed and
discussed with exerts in the field" in order to validate research methods and results.
RESULTS AND DISCUSSION
(reen accountin! has different meanin!s in different contexts startin! as follows:
. )n the context of the national accountin!" !reen accountin! is accountin! called natural
resources and has a macroeconomic dimension. )t rovides information on consumtion"
the $uantity and $uality of natural resources" renewa#le or non-renewa#le/
. )n the context of the financial accountin!" !reen accountin! refers to estimatin! and
financial reortin! of environmental costs and lia#ilities in accordance with accountin!
standards/
. )n the context of the mana!erial accountin!" !reen accountin! is oriented towards
rovidin! information needed su#stantiation economic decisions on investment" and the
structure of roduction from the environmental costs associated with an or!ani&ation 0
deartment 0 roduction line 0 system.
Mana!ement entities to !reen accountin! needs of a synthesis of information a#out
natural ha&ards and environmental costs. 1or the sustaina#le develoment strate!ies should
#e %nown #y mana!ement to develo strate!ies that cost #e #orne #y the entity as a result
of outsourcin! activities related to the environment.
Macroeconomic mana!ement accountin! in the new ecolo!ical economy must #rin!
chan!es in the definition of environmental costs.
And ne!ative economic evolution is !oin! from medium" therefore" re$uired additional
caital exenditure #oth at the macroeconomic level #ut esecially at the microeconomic
level. 'hey would involve:
-transition to the exloitation of ores with low content of useful su#stances/
-reusa#le resource recovery/
-ensurin! the rotection of natural environment/
- imrovin! the natural environment
As a result of human intervention on the natural environment" resultin! an indissolu#le
lin% #etween economic !rowth and environment. As a result of human intervention on the
natural environment" resultin! an indissolu#le lin% #etween economic !rowth and
environment. )n terms of economic" environmental conse$uences are:
- environmental ollution/
- deletion of the natural resources/
-raise of the environmental entroy.
)n terms of environmental influence on the economic environment imoses
restrictions such as:
- internali&ation of the ne!ative externalities/
-creation of the clean economic structures/
Economical !rowth now is conditioned #y recent activities such as:
-used water rotection activities in industry" a!riculture and household consumtion/
- air urification activities
- soil and forest rotection activities
-the collection of waste and industrial residues/
-flora and fauna rotection activities.
Environmental activity is art of the social roduction rocess" !eneratin! imortant
economic value" its cost is reflected in the rice of !oods and services.
'he urose of environment rotection activity" #e it outsourced to seciali&ed units"
whether it2s internali&ed" is to #rin! rofits.
Startin! from the cometition in the mar%et economy the rofit of the entities actin! on
environmental rotection is re$uired motivation" imosed. 3eeenin! contradiction
#etween the natural environment re$uires that rofit and !rowth to #ecome a lever
imortant values" a source for the formation of #ud!et for environmental activities. )t
follows that the rofit that hi!hli!hts environmental rotection wor% must #e received at
first as activity retention of environmental $uality" rotection of its resources on the other
hand a source of develoment.
Merchandise value structure must #e considered wor% and livin! exenses for
environmental rotection materiali&ed.
Each entity needs to rethin% new tools mana!ement" an imortant aside the
Environmental Mana!ement System *EMS+" the urose #ein! to rotect the environment
in which the entity oerates.
Environmental olicy actions are reflected in environmental costs" comonent costs
should not #e ne!lected. 'he latter has now led to the develoment of environmental costs
Mana!erial Accountin! *EMA-Environmental Mana!ement Accountin!+ Environmental
mana!ement accountin! is the alication areas:
. Assessment of the annual environmental costs/
. 4ricin! roducts and services/
. Evaluation of the environmental investments/
. 3rawin! u the environment/
. Calculation of the cost savin!s and #enefits resultin! from environmental ro,ects/
. 3esi!nin! and imlementin! the environmental mana!ement systems/
. Evaluation of the environmental erformance indicators and #enchmar%in!/
. 5#tainin! clean roduction" ollution revention/
. 3eveloin! the environmental ro,ects/
. 4romotion outside sendin!" investment and environmental o#li!ations/
. Environmental -eortin! *includin! the statistical a!encies and local authorities+
Environmental costs can #e classified as:
. costs related to the downloadin! and stora!e of waste" emissions and their treatment/
. insurance costs and rovisions for environmental lia#ilities/
. Cost forecastin! and environmental mana!ement includin! research and develoment
costs related to the environmental ro,ects.
. Materials and rocessin! costs of the non-value suly roducts containin! materials
that are resent in waste/
. 4rocessin! costs of non-roduct oututs
. External costs !enerated #y the u#lic entity or the relevant costs for suliers and
customers/
Environmental costs in terms of mana!ement" there is a new aroach to Cost
Calculation #ased on the o#,ective of or!ani&in! roduction and losses considerin! the
technolo!ical flow" information structure more efficient.
'he two directions of system costs" the economic and ecolo!ical" from the urose of
calculatin! the cost and system which is to o#tain information a#out the allocation of the
total cost of roduction" have #rou!ht imrovements in cost calculations. 1rom the
economic oint of view hi!hli!ht material costs" value and laces it aears and the
ecolo!ical" reducin! costs and ener!y used materials lead to ositive ecolo!ical effects
em#odied in reducin! waste and emissions.
Entities to imlement the system of environmental mana!ement costs" must aly a
methodolo!y that should ta%e the followin! stes:
. )dentification of the environmental asects of the entity/
. 3eveloment of material and monetary comany flows/
(reen accountin! so far met four sta!es of develoment.
. 6789s: develoin! descritive models of re!ulatory action/
. 67:9-6779: de#ates on the role of accountin! in the reortin! of information on
activities related to environmental conservation/
. 6776-677;: shain! environmental accountin! and financial disclosures desi!ned to
launch the concet of environmental auditin!/
. 677;-resent: <C role orientation to assess environmental erformance and develo
an accountin! framewor% for reortin! erformance in correlation with environmental
re$uirements" aimin!: increased imact of environmental factors in the activity of
comanies" !uidance in order to identify environmental issues" the their assessment and
reortin!" rovidin! interdiscilinary educational ro!rams focusin! on environmental
issues and accountin! treatment" secific accountin! ractices develoment environment.
=6>?
)nternational 1ederation of Accountin! in Au!ust @99; u#lished a !uide on alied
mana!ement accountin! environment" in which summari&e the #est ractices o#served
worldwide" #ased on which to comment. =7?
'he !uide is not that of standard or re!ulation he aimed Ato roose an analytical
aroach" a concetual framewor% and definitions to terminate errors are made in terms of
alied environmental mana!ement. 'here is currently no definition unanimously acceted
the alied mana!ement accountin! environment and the !uide does not attemt to !ive a
definition.
Mana!ement accountin! should collect relia#le data on consumtion of raw materials"
water" ener!y" waste !enerated #y activities of the entity" monetary data on the costs of
rotection and restoration of natural environment" earnin!s ac$uired from the environment
rotection olicy and reducin! consumtion natural resources. =;?
CONCLUSION:
. (reen accountin! at the macroeconomic level *the entity+ covers the activities of
this imact on the environment and the macroeconomic level" national !reen accountin! is
to imact national economy on the environment.
. Any trainin! rofessional accountants and their role should #e interested in the
new concet of !reen accountin! in !eneral and in articular !reen accountin! mana!ement
of the environment" each #rin!in! out their content revisions in ractice and resonsi#ility.
. (reen accountin! o#,ective is to consider environmental rotection and restoration"
resectin! the traditional role of accountin!" which is to ta%e account of flows and ris%s of
natural environment and communicate internal and external users" Afairly entity.A
. 'he relationshi #etween the entity" its economic activity and the environment is
comlex.
. (reen accountin! should not only consider the conse$uences of centrali&ation of
activity on the environment" which is already roduced" #ut also to consider the actions
related to revention of harmful effects" adverse environment.
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