Green Accounting: Integrating Environmental Impact on Financial-Reporting Framework

  • Fe R. Ochotorena Far Eastern University
Keywords: decommissioning cost, environmental cost, financial reporting, green accounting


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.

Author Biography

Fe R. Ochotorena, Far Eastern University

Fe R. Ochotorena is the assistant program head and chair of the Research Committee of the Department of Accountancy and Internal Auditing of Far Eastern University, Manila, Philippines.  She earned her doctorate degree in Business Administration (DBA) from Far Eastern University; Masters degree from Colegio de San Juan de Letran, Manila and Bachelor of Science in Commerce major in Accounting from Polytechnic University, Manila. She is a Certified Public Accountant.  Her industry practice in the field of accounting encompassed the following areas: internal auditing, manufacturing, merchandising, services and insurance.  Her responsibilities span all phases of accounting – cost, finance, internal audit, and budget.  Likewise, she was engaged in public practice and consultancy services.  She joined the academe in 2002 where her extensive exposure compliments her teaching and research career.