Emissions trading in financial statements: new Italian accounting standards

Year 2014, Volume: 4 Issue: 4, 48 - 55, 23.07.2016

Giovanna Centorrino

Abstract

Interest in the topic of sustainable business derives from the realization of the scale of the detrimental environmental effects provoked by industrial activity. Consequently, a growing sense of responsibility, at both a political and corporate level, regarding environmental protection, is developing. This paper examines the issues surrounding the recent publication by the Italian accounting association (Organismo Italiano di Contabilità: OIC) of two new accounting standards concerning environmental protection: OIC 7 - energy from renewable sources1, and OIC 8 on the emission of greenhouse gases. After a brief introduction on the role of international accounting standards and their relationship with national principles, we shall explore the devices employed in Italy for the control of emissions regarding sources of renewable energy and greenhouse gases, including how they are treated in accounting procedures

Keywords

Sustainable Business, Environmental Cost Management, Environmental

References

• Alaimo S. (2005). Protocollo di Kyoto, riduzione delle emissioni e mercati ambientali. Phasar, UE. COM 629/3.
• Azzali S., Allegrini M., Gaetano A., Pizzo M. & Quagli A. (2006). Principi contabili internazionali. Torino: Giappichelli.
• Basosi R. & Verdesca D. (2006). Emission Trading e piano assegnazione quote. Ambiente e sicurezza, Il Sole 24 Ore.
• Camfferman K. & Zeff S. A., (2000). Financial Reporting and Global capital market. A history of the international Accounting Standards Committee. Oxford University Press.
• Capodaglio G.& Ricci A. (2008). Le finalità conoscitive del bilancio d’esercizio: recenti modifiche normative e prospettive future. Rivista italiana di ragioneria ed economia aziendale, novembre- dicembre.
• Cicigoi E. & Fabbri P., (2007). Mercato delle emissioni ad effetto serra: istituzioni ed imprese protagoniste dello sviluppo sostenibile. Il Mulino.
• Cook A., (2009). Emission right: From costless activity to market operations. Accounting Organizations and Society, 34, (pp.456-468).
• D'Auria, M., (2005). La direttiva europea ''emissions trading'' e la sua attuazione in Italia. Giornale di diritto amministrativo, fasc. IV.
• EPA (United States Environmental Protection Agency), (1995). An Introduction to Environmental Accounting As A Business Management Tool: Key Concepts And Terms. Erişim Adresi: http://www.epa.gov/gateway/learn/ (Erişim Tarihi: 07.09.2012)
• Hall, J.K., Daneke G.A. & M. J. Lenox, (2010), Sustainable Development and Entrepreneurship: Past Contributions and Future Directions, Journal of Business Venturing, Article in Press. Vol. 25, Issue:5, 439–448.
• Masanet, J. & Llodra M., (2006). Environmental Management Accounting: A Case Study research on Innovative Strategy. Journal of Business Ethics, Vol. 68, Issue:4, (pp.393-408).
• Mei, L. (2011). Full Cost Accounting in Solid Waste Management: The Gap in the Literature on Newly Industrialised Countries. Journal Of Applied Management Accounting Research, Vol. 9, Issue:1, (pp.21-36).
• OIC 8, (2013). Le quote di emissione di gas ad effetto serra. Organismo Italiano di Contabilità.
• OIC 7, (2013). I certificati verdi. Organismo Italiano di Contabilità.
• Potocan, V. & Mulej, M. (2003). On Requisitely Holistic Understanding of Sustainable Development from Business Viewpoints. Systemic Practice and Action Research, Vol: 16, (pp. 421-436).
• Pulejo L., (2011). La gender equality nell’economia dell’azienda. Strategie e strumenti di mainstreaming di genere per lo sviluppo sostenibile. Milan: Franco Angeli.
• Coase, R. H. (1960). The problem of social cost. The Journal of Law and Economics, vol. III.
• Rupo D., (2001). La variabile ambientale nella comunicazione d’impresa. Torino: Giappichelli Editore.
• Stanko, B. B., Brogan, E., Alexander, E. & Josephine Choy-Mee, C. (2006). Environmental Accountin. Business & Economic Review, Vol. 52, (pp.21-27).
• UE (2007). Comunicazione della Commissione al Consiglio e al Parlamento Europeo, Relazione sulla strategia di sviluppo sostenibile 2007. COM (2007).
• UE (2010). LIBRO VERDE. La politica di sviluppo dell’Unione europea a sostegno della crescita inclusiva e dello sviluppo sostenibile. Potenziare l'impatto della politica di sviluppo.
• Vermiglio F. (2007). Accounting Harmonization of SME lights and shadows over the Italian experience, in “Small and Medium- Size enterprises in the conditions of globalization: economic, social, legal and ecological problems of development, Kyiv (Collected scientific reports of the international Ukrainian, Polish-Italian symposium, Yalta, 15- 17 may).
• Wilmshurst, T. D. & Frost, G. R. (2001). The role of accounting and the accountant in the environmental management system. Business Strategy & The Environment (John Wiley & Sons, Inc), Vol.10, (pp.135-147).
• Xiaomei, L. (2004). Theory and practice of environmental management accounting. International Journal Of Technology Management & Sustainable Development, Vol.3, (pp.47-57).
• Yakhou, M. & Dorweiler, P. V. (2004). Environmental Accounting: An Essential Component Of Business Strategy. Business Strategy and Environment, Vol.13, (pp.65-77)