Discussion On Application Of Environmental Management Accounting Methods

Faced increasingly serious environmental problems, as the main active agent, enterprisesbear an inescapable social responsibility. To manage the environmental impact of theiractivities, enterprise should implement the environmental assessment into accounting. As thelimitation of tradition accounting system in the environmental factors, the induction ofenvironmental management accounting (EMA) system has became an inevitable andobjective necessaries, and an important part of introduction of environmental managementaccounting is the application of environmental management accounting methods.Based on these, this paper has discussed the application of EMA methods by linkingtheory with practice. On the basis of research summarizes of home and abroad and theinvestigation of jiamei carpet factory in dalian, I Proposed three kinds of environmentalmanagement accounting methods, namely Environmental-related Equipment InvestmentDecision-making, Material Flow Cost Accounting, Life Cycle Assessment. On the one hand,it has made a detailed theory analysis about the application of these three methods, includingmeaning, content, implementation steps etc. On the other hand, combined with theinvestigation and the collected dates, it has a showing about the accounting processes andresults of the application of these three methods. By using Environmental-related EquipmentInvestment Decision-making in the accounting of equipment-tufting hook, it reflects aunreasonable investment decision-making in firm, by using Material Flow Cost Accounting inwool carpet production, it will help companies to analyze unnecessary material waste andmeasures of improving production, by using Life Cycle Assessment in accounting of carpetenvironmental cost in post-production stage, it enable enterprises to realize the importance ofenvironmental design. Finely, the article concluded the necessity and feasibility of applicationof EMA methods in our enterprises, especially SMEs, analyzed application limitations andimprovement measures, also made a simple outlook about the perspective of EMA applicationin China.This paper studies aimed at strengthening self-awareness of China’s enterprise onapplication of EMA, verifying the feasibility of application of EMA methods in the majority of SMEs, providing several EMA methods which can be really practical reference forenterprises, and make some efforts for the processes from theory to implementation andspeeding up application of EMA in China’ enterprise.