Towards a conceptual design for environmental and social cost identification and measurement system

Petcharat, Neungruthai; Mula, Joseph M.

doi:10.1108/19852511211237435

Cited by 13 publications

(19 citation statements)

References 36 publications

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“…In this dynamic business environment firms throughout the world are pressurize to adopt an effective management accounting approach using sustainability accounting concepts for environmental and social cost measurement to increase shareholder value (Nickie Petcharat and Mula, 2012). However, emissions disclosure is still in its infant stage in emerging economies.…”

Section: Methodsmentioning

confidence: 99%

Impact of carbon emissions on cost of debt-evidence from India

Kumar

Firoz

2018

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Purpose The purpose of this paper is to analyze the relationship between carbon emissions and a firm’s cost of debt (COD) in the Indian context. Design/methodology/approach The present study is based on the Indian firms who disclose their emissions data under the Carbon Disclosure Project (CDP) during the period 2011 to 2014. The selection model is being used to remove the problem of endogeneity and sample selection bias. Further, the testing model is being used to examine the impact of carbon emissions on the COD. Findings The present study found that the coefficient of carbon emissions is positively and significantly associated with the COD. Moreover, the outcomes of the robustness test further show that the COD will be higher for polluting firms than environmentally friendly firms in India. Research limitations/implications The study has covered all the companies from India who are disclosing their emissions data under the CDP, London. The study will be most relevant for financial planning and capital structure design by the Indian companies. However, in designing the capital structure, the only COD is being covered in this study. Originality/value To the best of the author’s knowledge, the present study is a first of its kind to investigate the relationship between firms’ carbon emissions level and COD in the Indian context.

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Section: Methodsmentioning

confidence: 99%

Impact of carbon emissions on cost of debt-evidence from India

Kumar

Firoz

2018

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“…According to Abd [5] stated that TCA is almost obsolete. Research evidence indicates that businesses should intend to change and move to new administrative-accounting practices while exploring ways to reduce costs [28].…”

Section: Processmentioning

confidence: 99%

Integrating Activity Based Costing (ABC) with Enterprise Resource Planning (ERP) for Effective Management: A Literature Review

Kitsantas¹,

Vazakidis²,

Stefanou³

2020

Technium

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In the age of a global competition environment, the accurate costing measurement is important for planning and decision-making. To achieve this goal, contemporary costing methods are tested and applied such as the Activity Based Costing (ABC) in conjunction with the use of modern Information Technology (IT). The review study attempts a comparative analysis of both ABC and Traditional Costing Accounting (TCA), examining the main themes emerging from academic research and practitioners concerning the challenges, benefits, and barriers of ABC, analyzing the impact of the integration between ERP and ABC systems and its effect on management performance. A review of the literature generated an initial pool of 322 studies. Upon extensive review, 38 studies were found to be relevant to this topic. It appears from the review and analysis of the academic literature and professional sources that a successful integration among ERP and ABC minimizes the operation costs, enhances competitiveness, improves the management of the enterprise, due to its abilities to provide more accurate costing information for a strategic decision. However, practical implications in adopting ABC under ERP could be very challenging, requires a huge amount of internal resources, commitment among employees, and top management. In closing, additional research studies employing both qualitative and quantitative methods as well as case studies are needed in order to provide insights into the impact of ERP and detailed implications of how the ABC accounting system is adapting to the ERP environment and its effect on firm performance.

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“…The findings of this study have important implications for accounting standards setters, policymakers such as government and other regulators, credit rating agencies, investors, and financial analysts as they work toward developing standards for measuring, assuring, and reporting on carbon credits. The firms throughout the world are facing pressure to adopt an effective management accounting approach using sustainability accounting concepts for environmental and social cost measurement to increase shareholder value (Nickie Petcharat and Mula, 2012; Kumar and Firoz, 2018c).…”

Section: Introductionmentioning

confidence: 99%

Accounting for certified emission reductions (CERs) in India

Kumar

Firoz

2019

MEDAR

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Purpose The purpose of this paper is to analyse the certified emission reduction (CERs) disclosure and reporting practices followed by Indian firms. Design/methodology/approach The study is based on all 131 Indian firms who received the CERs under the CDM of UNFCCC. The content analysis is being used to examine the recognition, measurement, presentation and disclosure of CERs within the financial statements. Findings The study found that there is generally no uniformity of accounting for CERs. The firms adopted a diversity of accounting practices. More specifically, majority of companies (40.46 per cent) recognised CERs as the other income; a very high non-disclosure rate (91.60 per cent) for valuation of CERs inventories was found as only four companies (3.05 per cent) provided accounting treatment for CERs inventories at lower of cost or net realisable value followed by three companies (2.29 per cent) accounted for these inventories at Net realisable value at the end of the reporting period; similarly, a very high non-disclosure rate (92.36 per cent) for how companies account for expenses incurred in earning these credits was found. Research limitations/implications The study will be useful for a wide array of audiences ranging from accounting standard setter to the auditors. The present analysis is based on secondary data, as we examined only annual reports of the sample companies to know how they recognise their earned CERs within the financial statements. So, we did not cover the opinions of various key persons of companies like an accountant, auditors etc. which could be a limitation of this study in validating CERs disclosure practices followed by the Indian firms. Originality/value To the best of the author's knowledge, the present study is a first of its kind to analyse the carbon credit disclosure practices in the context of a developing country.

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Towards a conceptual design for environmental and social cost identification and measurement system

Cited by 13 publications

References 36 publications

Impact of carbon emissions on cost of debt-evidence from India

Impact of carbon emissions on cost of debt-evidence from India

Integrating Activity Based Costing (ABC) with Enterprise Resource Planning (ERP) for Effective Management: A Literature Review

Accounting for certified emission reductions (CERs) in India

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