A proposed framework for the disclosure of environmental data in a unified accounting system: A field study in Missan Refinery

Abstract

In the recent of the 20th century, the interest in environmental research and studies has increased, because of the risks and challenges that face the environment and society alike. This requires a wide interest in the mechanisms and procedures to protect the environment from the effects of pollution, which has spread in most countries. Therefore, it became urgent for accounting to take part in this field as a result of the increased demand for financial and economic data and statements that pertain to the environment and natural resources. The goal of the research is to integrate the economic and environmental dimensions through the suggested framework for revealing the economic, financial, and environmental actions, including all levels of the company and exhibiting them in the format required by the beneficiary parties. Additionally, it provides an explanation of the fundamental ideas in environmental accounting and how they are disclosed in financial statements. The researchers have come up with a set of conclusions represented in the lack of sufficient interest when applying the environmental accounting system due to the fact that the senior management was not sufficiently aware of the need to disclose that environmental data in a unified accounting system. In addition, it is the lack of sufficient data on environmental pollution and ways to protect it. It was also noted that those in charge of preparing the final accounts face the difficulty of sorting and allocating between what is related to economic activity and environmental activity. The researchers also came up with a set of recommendations represented in developing a unified accounting system in a manner that is compatible with recent work developments, including those related to environmental accounting. In addition, the management of the refinery should pay attention to the scientific accounting methods related to the environment and disclose them in accounting within the financial statements. Moreover, it is emphatically recommended to hold courses and workshops for accountants in the field of environment and giving importance and confidence to the environment department in the refinery to provide it with competencies and engineering and administrative expertise familiar with environmental affairs. It would support the refinery financially to keep pace with the development taking place in protecting the environment from pollution