in bpp f5 it is said that “Bennett and James went on to suggest six main ways in which business and environmental benefits can
(f) Involving management accountants in a strategic approach to environment-related
management accounting and performance evaluation. A green accounting team’ incorporating
the key functions should analyse the strategic picture and identify opportunities for practical
initiatives. It should analyse the short-, medium- and long-term impact of possible changes in the
(i) Government policies, such as on transport
(ii) Legislation and regulation
(iii) Supply conditions, such as fewer landfill sites
(iv) Market conditions, such as changing customer views
(v) Social attitudes, such as to factory farming
(vi) Competitor strategies
Possible action includes the following.
(i) Designating an ‘environmental champion’ within the strategic planning or accounting
function to ensure that environmental considerations are fully considered.
(ii) Assessing whether new data sources are needed to collect more and better data
(iii) Making comparisons between sites/offices to highlight poor performance and generate peer
pressure for action
(iv) Developing checklists for internal auditors
Such analysis and action should help organisations to better understand present and future
environmental costs and benefits.”
what does point f here and term green accounting team mean?
BPP do seem to have gone into far too much detail
(The examiner has said that when she does ask about environmental accounting, it will only be written and will be a maximum of 8 marks as one part of a question.)
All that Bennett and James are suggesting is that a business should delegate some people to look at the impact of possible changes in legislation etc. and how the business should deal with it. All they mean by a ‘green accounting team’ (it is not a standard term) is the name they are giving to the people who are delegated to be looking into this. (Green = concerned about the environment)
You must be logged in to reply to this topic.