The Need for Environmental Accounting for Manufacturing and Industrial Firms

The paper is aimed at studying the effect of reporting environmental costs and the need for environmental accounting for manufacturing and industrial firms damaging their surroundings and finally their societies when doing manufacturing activities. It also considers the attention paid by users of financial statements to reporting environmental costs of manufacturing firms as a separate level of cost and benefit analysis and totally disclosing the environmental interventions as parameters of decision making in notes attached to financial statements. Result showed that users of financial statements pay no attention to environmental costs of manufacturing activities. It, additionally, became clear that users of financial statements and environmental rules and regulations have trivial effect on controlling and reducing environmental costs of manufacturing firms.