Research On Environmental Cost Accounting Of Coal Companies

Since reform and opening up, China’s coal industry has been the pillar industry of national economy development. Under the guidance of coal industry’s rapid development, our country’s economy level has also been unprecedented huge boost. However, in the process of pursuing economic benefits, it caused a large amount of natural resources waste and serious environmental pollution and destruction. Most companies have inherited the idea of "treatment after pollution" to carry out daily activities. Nowadays, the state and society are gradually aware of the seriousness of environmental problems, promoting the sustainable development strategy. With the whole coal industry in the transition development period, the environmental costs increased significantly, the coal prices have been falling down. The coal companies are facing unprecedented survival and competition. So at this critical moment, coal companies should face to the threats from environmental problems, using innovation of cost management methods, strengthening the effective management of environmental costs, so as to realize the coordinated development of economic and environmental benefits.Most of the current coal companies have not paid enough attention to the environment problem, with no environment cost accounting. The value of coal resource is not included in the cost. The coal companies still use the traditional accounting method, which can’t reflect its real cost, may lead to cost distortion and pay attention to immediate interests and ignore the long-term interests, making the wrong decisions. In such circumstances, coal companies should actively explore and improve its cost accounting management methods calculating the environmental costs into the coal enterprise’s accounting system.This paper mainly adopts normative research method, combined with the analysis of the specific case study. After reading related literature both at home and abroad and on the basis of experts’ research achievements, it studies the concept and classification of the environmental cost and analyzes the environmental costs from the five aspects of the recognition, measurement, course setting, distribution and report to establish the coal companies environmental cost accounting system, and then according to the data make the advance beforehand control and afterward control to achieve the goal of reducing the coal companies environmental cost. On this basis, apply it according to the actual situation of coal companies. Finally, the paper expounds that the coal companies may encounter difficulties under the condition of the existing environmental costs accounting and aimed at these problems puts forward some improvement suggestions from different levels, which can help companies more calm in the face of competition and challenges, and achieve the successful transformation development as soon as possible.