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Carbon Accounting: Its Implications on Accounting Practices and Corporate Sustainability Reports

Author

Listed:
  • Muh. Ardiansyah Syam

    (Magister of Accounting - University of Pancasila, Jakarta, Indonesia)

  • Syahril Djaddang

    (Magister of Accounting - University of Pancasila, Jakarta, Indonesia)

  • Adam Adam

    (SWINS - Institut Bisnis dan Komunikasi Swadaya, Jakarta, Indonesia)

  • Endang Etty Merawati

    (Magister of Accounting - University of Pancasila, Jakarta, Indonesia)

  • Mohammad Roziq

    (Doctor in Economics Program, Postgraduate School, University of Pancasila, Jakarta, Indonesia)

Abstract

Carbon Accounting is a new accounting paradigm on ecological-based economic transactions. It is also known as carbon cost management. The issues regarding carbon cost management will have implications for other strategic issues related to management accounting. The concept and application of Carbon Accounting will also have broad implications for the professions and strategic issues of carbon management accounting. This study focuses on the implication of carbon accounting on accounting practices and corporate sustainability reports. The literature reviews and qualitative analyses were conducted to grab the philosophy, practice and implication of implementation of carbon accounting – carbon cost management. Based on the study, carbon accounting implementation implied to accounting practices and corporate sustainability report. In term of calculating carbon emission or greenhouse gasses, there were four methods as set by Inter-governmental Panel for Climate Change (IPCC) and European Renewable Energy. In term of Corporate Sustainability Report, there were three theories considered: Instrumental Theories, Social & Political Theories and Normative Theories. It is difficult to account for emission allowances, and revealed that there is a potential guidance role for auditors during the absence of an international accounting standard. With the emission allowance assets, there is diversity in the accounting treatment of liabilities, and a considerable level of non-disclosure. In practice, this means that the only liability recognition in the financial statements is for shortfalls in allowances.

Suggested Citation

  • Muh. Ardiansyah Syam & Syahril Djaddang & Adam Adam & Endang Etty Merawati & Mohammad Roziq, 2024. "Carbon Accounting: Its Implications on Accounting Practices and Corporate Sustainability Reports," International Journal of Economics and Financial Issues, Econjournals, vol. 14(4), pages 178-187, July.
    • Handle: RePEc:eco:journ1:2024-04-20
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    References listed on IDEAS

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    Cited by:

    1. Oyerogba Ezekiel & Sunday Olugbenro & Sunday Omojola & Olatunde Wright & Olateju Aregbesola, 2024. "Influence of Board Characteristics on Carbon Emission Disclosure: Evidence from the Nigerian Oil and Gas Sector," International Journal of Energy Economics and Policy, Econjournals, vol. 14(5), pages 582-592, September.

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    More about this item

    Keywords

    Carbon Accounting; Accounting Practices; Corporate Sustainability Reports;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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