The importance of accounting disclosure of sustainable environmental costs to improving the quality of financial reports
Dr. Taisir Jawad Kadhim Sultan
The increasing interest of companies in their duties towards society and their keenness to fulfill their social, environmental and financial responsibilities, it has become necessary for this ethical commitment to be matched by an interest in disclosing information on sustainable environmental costs that explain the conduct of these social and environmental activities. Disclosure is no longer limited to what is contained only in financial reports. Rather, it went beyond that to the necessity of paying attention to the inclusion of financial reports on information on environmental costs that clearly show the user the social role of the economic unit towards society and the environment. The research problem crystallizes in the lack of current accounting disclosure of the industrial sector companies in providing sufficient information presented in their financial reports regarding environmental costs. One of the most prominent obstacles and problems that may prevent and hinder the establishment of the General Tire Industry Company and all companies operating in the industrial sector in general is the lack of educational programs that deal with the importance of sustainable environmental costs. The lack of an accounting system that fulfills the purposes of accounting disclosure of environmental costs, the absence of binding standards for accounting disclosure of environmental costs, the absence of local accounting standards that oblige the company to disclose its environmental costs, and the researcher recommends, through the results achieved, the importance of adequate and appropriate disclosure of environmental costs, which has The significant impact because this disclosure will help the management to improve the quality of its information contained in its financial reports and earn the company a good reputation for contributing to preserving the dimensions of environmental and social sustainability.
Dr. Taisir Jawad Kadhim Sultan. The importance of accounting disclosure of sustainable environmental costs to improving the quality of financial reports. Int J Res Finance Manage 2023;6(1):298-306. DOI: 10.33545/26175754.2023.v6.i1d.219