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ENVIRONMENTAL ACCOUNTING: AN ESSENTIAL COMPONENT OF BUSINESS STRATEGY
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ENVIRONMENTAL ACCOUNTING: AN ESSENTIAL COMPONENT OF BUSINESS STRATEGY
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A control system should be developed to ensure adequate safeguards to prevent loss, damage, or theft of property. A physical inventory of the property should be taken at least once every two years. The results of the inventory should be reconciled with the property records and any discrepancies should be investigated. In addition, maintenance procedures should be developed to keep the property in good condition. Fixed assets should be recorded at cost. Donated assets should be recorded at fair market value at the time of donation. Estimates may be made for equipment purchased so long ago that records are not available. Improvements. | Business Strategy and the Environment Bus. Strat. Env. 13 65-77 2004 Published online in Wiley InterScience www.interscience.wiley.com . DOI 10.1002 bse.395 ENVIRONMENTAL ACCOUNTING AN ESSENTIAL COMPONENT OF BUSINESS STRATEGY Mehenna Yakhou 1 and Vernon P. Dorweiler2 1 Georgia College and State University USA 2 Michigan Technological University USA Environmental accounting is on an expansion path. With increasing social focus on the environment accounting fills an expectation role to measure environmental performance. The status of environmental awareness provides a dynamic for business reporting its environmental performance. Examining the integration of environmental policy with business policy is the focus of this research. The business firm s strategy includes responding to capital and operating costs of pollution control equipment. This is caused by increasing public concerns over environmental issues and by a recent government-led trend to incentive-based regulation. This paper describes the environmental component of the business strategy producing the required performance reports and recognizing the multiple skills required to measure compile and analyze the requisite data. Special Correspondence to Dr. M. Yakhou The J. Whitney Bunting School of Business Georgia College and State University Campus Box 15 Milledgeville GA 31061-0490 USA. E-mail mehenna.yakhou@gcsu.edu Copyright 2004 John Wiley Sons Ltd and ERP Environment emphasis of the research is on generation of reports and their standards for the range of business and regulatory purposes. Copyright 2004 John Wiley Sons Ltd and ERP Environment. Received 18 October 2002 Revised 12 May 2003 Accepted 9 July 2003 INTRODUCTION Environmental accounting is an inclusive field of accounting. It provides reports for both internal use generating environmental information to help make management decisions on pricing controlling overhead and capital budgeting and external use disclosing environmental information of .
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