Title: Bridging the environmental accounting gap between the accounting and economics disciplines

Authors: Rosmini Ismail; Vicky Forgie; Khalizul Khalid

Addresses: Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, 35900 Tanjong Malim, Perak, Malaysia. ' Ecological Economics Research New Zealand, Massey University, PB 11-222, Palmerston North 4442, Landcare Research Building, cnr Riddet Road and University Drive, Massey University Campus, Palmerston North, New Zealand. ' Faculty of Management and Economics, University Pendidikan Sultan Idris, 35900 Tanjong Malim, Perak, Malaysia

Abstract: This paper discusses how to find the 'real' return for a tourism site by constructing accounting statements that take into account financial and environmental expenses, assets and liabilities. The concept of environmental accounting (EA) allows businesses and nations to report financial/economic and environmental activity in the same framework. This paper proposes an EA reporting tool which comprises an income statement, balance sheet and physical unit statement (incorporating environmental assets and liabilities in financial terms) referred to as 'environmentally sustainable accounting statements' (ESAS). To produce the ESAS, techniques from environmental economics and national accounting are integrated into regular financial accounts using methodologies that align with standard accounting principles as far as possible.

Keywords: environmental accounting; environmental economics; national accounting; tourism sites; tourist sites; expenses; assets; liabilities; environmentally sustainable accounting statements; financial accounting.

DOI: 10.1504/AJFA.2012.046873

American Journal of Finance and Accounting, 2012 Vol.2 No.4, pp.297 - 310

Published online: 20 Dec 2014 *

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