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Environmental Accounting

In: Business and Management

Submitted By mubeer
Words 2932
Pages 12
Environmental Accounting Management Practices in Japan

COURSE: INTERNATIONAL MANAGERIAL ACCOUNTING(C31IM)

MOHAMMED MUBEER.C
HOO175198

Contents 1. Introduction: What is Environmental Management Accounting (EMA)? 3 1.1 Environmental Accounting 3 1.2 Environment-related Management Accounting 3 2. Environmental Accounting Management Practices in Japan 4 2.1 Japanese Government Initiatives on Environment Accounting 5 2.1.1 MOE Initiative 5 2.1.2 METI Initiative 6 2.2 Environmental Management Accounting Practices in Japanese Manufacturing Sites 7 3. Conclusion 8 Bibliography 10

1. Introduction: What is Environmental Management Accounting (EMA)?
Organizations and the managers mainly believe that the environmental costs are not important for the business operations, however, it does not come to their mind that there are several production costs which do have vital environmental component. For example the purchase cost of raw materials or the unused portion which is emitted as waste is not considered to be environmentally related cost. By identifying as well as controlling these environmental costs, using Environmental Management Accounting (EMA) Systems, it can help environmental managers justify the cleaner production and along with this justify totally new methods of saving money as well as improving their environmental performance also at the same time (Magarinos, 2005) .
Thus EMA can be defined as:
“ EMA serves business managers in making capital investment decisions, costing determinations, process/ product design decisions, performance evaluation and a host of other forwards looking business decisions” (UNDSD, 2000; p 39) .
1.1 Environmental Accounting
The understanding as well as recognition along with incorporation of impacts of issues related to environment on the firms traditional accounting sub-systems is called as...

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