Chapter 7- Environmental Accounting

Question 1

What are the four functions of accounting(generally)

Answer 1

feedback to stakeholders about the performance

info to managers sothat they can make decisions about stuff

to have a record of customers, processes

its useful to see the past and to be able to calculate the future

Question 2

3 steps of normal accounting

Answer 2

identify accounts
record transactions
determine accounts balances from period to period

Question 3

goal and target group of management accounting

Answer 3

goal to satisfy internal needs, for corporate managers

Question 4

goal and target for financial accounting

Answer 4

goal to satisfy external needs, for external corporate stakeholders

Question 5

goal of any other accounting system

Answer 5

satisfy regulatory requirements

Question 6

why would environmental managers need accounting information

Answer 6

they needs it about the waste and pollution to make decisions

Question 7

what do stakeholders like shareholders demand of manager in financial accounting?

Answer 7

demand true and fair information

Question 8

what is the goal of Environmental management accounting (3 goals)

Answer 8

optimize profits,
identify risks and
reduce costs

Question 9

what is MEMA (monetary
environmental
management
accounting)

Answer 9

monetary information on
environment-related costs,
earnings and savings ( (e.g.
fines for non-compliance
with env. legislation))

Question 10

what is PEMA (physical
environmental
management
accounting)

Answer 10

physical information on the use, flows and
rates of energy, water and materials (incl.
wastes)

Question 11

What is a EMA?

Answer 11

Environmental management accounting

Question 12

what is the difference of MEMA and PEMA?

Answer 12

MEMA is Monetary (Environmental
related impacts on
economic
systems)
PEMA is physical (Company-related
impacts on
environmental
systems)

Question 13

Is MEMA and PEMA used for internal or external accounting’

Answer 13

both internal (because they have management in their name which is for internal)

Question 14

what is the accounting called that is for external uses? (super simple)

Answer 14

external environmental accounting

Question 15

5 advantages of EMA (similar to any Environmental action)

Answer 15

shareholder demands fulfilled
competitive advantage
better relation with customers/NGO
anticipation of tighter legal disclosure requirements
better public relations and corporate legitimacy

Question 16

what are some things environmental accounting keeps track of

Answer 16

Costs include costs to clean up or remediate contaminated sites,
environmental fines,
penalties and taxes,
purchase of pollution prevention technologies
and waste management costs

Question 17

Whats an example of life cycle costing (so while looking at life cycle concept a company came up with something smart

Answer 17

Life cycle costing showed the considerably lower cost of the tote system, compared to the
previously existing system
Results: cost savings, reduced ‘de-pack’ times

Question 18

what is activity-based costing

Answer 18

assignign the overhead costs to products (including env costs to product to then figure out that oil actually costs a lot bc of cleaning up or anything)

Question 19

EMA in south african mining industry

Answer 19

they still do money accounting, so dont realize the env damage they do

Question 20

example of a organisation that sets External environmental accounting (EEA)

Answer 20

SEC, IASB (international accounting standards board)

Question 21

what are four ways to count the monetary external environment accounting

Answer 21

1) indirect costs(like a scrubber emissions still)
2) environmental assets internalize those, that bees work for you or the s^forest makes things cool)
3) environmental liabilities (internalize costs like the damage you made for other in the future like water pollution)
4) tradable emission allowanaces like the EU scheme

Question 22

how and who can help with reporting the environmental aspects of the company for external accounting?

Answer 22

GRI Global Reporting Inititative (climate change, human rights and corruption) THey are like a help for env accounting and finding the physical things.

Question 23

ad hic is non cost, big project, big decisions, major project measure total impact and routine would be the env cost per product

Answer 23

like xerox one reusable tote , routine is allocating the cost to one thing , ad hoc is just one off decision and the total amount i save