Question

Use the Internet to research companies who have potential (1) pollution problems, (2) environmental-disposal problems, or (3) demolition issues (specifically big-box stores). Next, analyze the current requirements of GAAP for your chosen issue and discuss the efficacy of the required accounting and/or disclosure in informing investors of material information. Provide support for the status quo or additional reporting.

Answer 1

Reporting requirment as per accounting requirment in research company

Transparency is essential to producing a credible report. You should present your information in a balanced and transparent fashion. Celebrate success but also avoid glossing over negative environmental impacts or poor performance against targets.

1. Your report should summarise how you have carried out each of the steps listed above and the outcome from each

• how you have gone about it, such as the assumptions, methodologies, and reference data used;

• to which parts of your organisation the data relates. You should explain if you are not reporting data for some sources of environmental impacts within your chosen reporting boundary, whether they are from a geographical area, type of equipment or activity. Trends in impacts should be clear to the reader.  

• progress against targets, whether improvements or set-backs have occurred and how these are being tackled

• information relating environmental performance to financial performance. This should include environmental expenditures,

e.g. more efficient production processes, recycling facilities, the reclamation/ rehabilitation of land to a more natural state, or investment in projects in the local community.

2. Explain how you are managing your impacts i.e. EMAS, ISO 14001 and who has responsibility for this.

3. Identify the risks and opportunities that arise from your impact on the environment and from the environment’s impact on you through, for example, climate change. Be clear whether your organisation has been subject to any environmental fines. The date, location, reason and amount of fine should be stated.

4. Explain internal processes to manage and report risk. Develop a plan or strategy that addresses these risks and opportunities and fits with your business strategy or is integrated with it and report on this plan. Explain how the information you have gathered is used to support corporate decision making. Use case histories to illustrate your actions and approach