Green Accounting: Integrating Environmental Impact on Financial-Reporting Framework
This study attempted to examine the environmental compliance of selected Philippine mining, oil, and power-generation sectors as viewed by auditing practitioners and to discover what these companies have been doing about this matter for the purpose of corporate financial reporting. These sectors were chosen because of their undoubted environmental impacts.
To achieve the objectives of this paper, purposive sampling and a qualitative research method were utilized through documentary analysis and conducting interviews among directors and associates of the big four auditing firms that are considered conversant about the topic and that generally contemplate on the significance of environmental issues.
Due to the nonexistence of specific accounting standards and since green/environmental reporting is technically voluntary, companies can theoretically adopt any approach to environmental reporting that they like. However, it was revealed that in practice, a number of voluntary-reporting frameworks have been implemented.