Environmental Cost Accounting Treatment For Enterprises

With the development of economics, environment problem is becoming more and moreimportant. Environmental pollution has become a global problem. According to theenvironmental protection department’s estimation80%environmental pollution coming fromthe production and operating activities of enterprises. The environment problem has obviousexternalities. Enterprises often make decisions out of their own interests. They seldomconsider the pollution and damage they bring to the environment which generated in theprocess of production. But with the improvement of people’s awareness of environmentalproduction and strengthen of the laws and regulations, out of their own survival pressure, theenterprises must give more attention to environment protection. Environmental cost has agreat important on environment cost and the enterprise evaluation. So the environment costhas important research value. Based on this background, the article does a deep research onenvironmental cost of enterprises. Starting from the relevant theory of environmental cost,then study the concept, principle of environmental cost. Then let environmental costaccounting as the center, elaborated a series of principles and methods for the recognition andmeasurement of environmental cost. Then elaborate some examples, to combine case studieswith environmental costs theory. Finally, put a series of research and application of theenvironmental cost of the enterprise performance evaluation to explore influence on theenterprise performance evaluation in considering and not considering the environmental costsituation to further verify the importance of the research on environment cost. The author alsohopes that the investor of the enterprise and enterprise management personnel can realizepotential risk of environment problems in their decision making.