The Relevance of Environmental Information in Terms of Accounting Standards and Regulations
Author:
Assistant Ionel-Alin IENCIU, Ph. D.
JEL:
M41
DOI:
Keywords:
environmental costs, environmental liabilities, financial accounting, environmental issues, stakeholders
Abstract:
Sustainable development, eco-efficiency and social responsibility are concepts whose value depends on how environmental, social and economic issues are recognized, evaluated and reported through financial accounting. As a result, these concepts must be examined in accordance with the nationally and internationally accounting practices. In the present study it is analyzed, through a theoretical approach, the way that financial accounting and financial reports meets the information requirements of the stakeholders. There are many reasons why financial accounting can be considered as insufficient in reflecting in a relevant way the environmental impact of the entity. Financial accounting promotes financial performance at the expense of environmental performance, and the information provided through financial reports is, in particular, financial and economic. This aspect leads to restriction or exclusion of other categories of users, even if they are affected by the environmental impact.