Understanding Company Accounts and reports Essay

Understanding Company Accounts and reports - Essay Example By monitoring their usage of these essential metrics, organizations are able to reduce their contribution to greenhouse gas emissions. In addition, they are able to identify and choose operational procedures which are environmental friendly. Cost saving is another essential benefit that accrue from the environmental accounting and reporting. Organizations are taking environmental accounting and reporting regulations very serious. For example in Europe, environmental accounting regulations have been put and organizations are required strictly to adhere to them to them. In Europe, a tradition has been established that requires the organizations to recognize not only an economic, but also the social role of their statutory information in which environmental accounting and reporting is part. The European Union Action Programmes on the Environment have done massive work by actively calling the enterprises to disclose details of environmental policy and activities as part of their annual accounting reports. They are also required to disclose details of their expenses on various environmental programmes both at national and international level. This body also demands the enterprise to make provisions for environmental risks and their future environmental expenses (Crowther 2000). Although the environmental accounting and reporting has not been made a statutory requirement in Europe, many members of European Union have adopted and follow it. Currently, there are many national environmental accounting regulators in Europe that are designed to address the issue of environmental accounting reporting. Spain and Denmark have been on the forefront of making these regulations. For example, the Danish Environmental Protection Act requires companies operating within Denmark to accompany their annual financial reports or statements with green reports. This green report