"Do you feel accountants and particularly auditors should play a more active role in these issues (environmental issues) or should the government and legal profession continue the leadership role?" Professor Gideon give us a deserve thinking of problem. Most of us have ignored the important role accountants play in national economic. Just like the saying:"To an extent, western market economies are not ruled by buyers and sellers; they're ruled by accountants.In the end, the rules of acceptable accounting are what determines whether companies are profitable and deals make money."
the role of accountants
.Enviornmental problem is not more just ethical issues for interpner
Investors are concerned about environmental responsibility. Investors want to know about potential hazards and future environmental liabilities of companies. Accounting firms are required during an audit to assess contingent liabilities, including environmental risks. Auditors check for the compliance with accounting standards once the environmental risk is identified.
Several regulation regarding environmental issues have been leased recent year,The FASB Emerging Issues Task Force (EITF) was formed in July 1984 to assist the FASB identify emerging issues affecting financial reporting and resolve problems in implementing authoritative pronouncements.
(1) SFAS No. 5 states under "Accounting for Contingencies" that a liability should be recognized in the financial statements if a loss is probable and the amount is estimable. If the loss amount is not estimable which is often the case, the contingency must be described in the footnotes to the financial statements.
(2) ETIF Issue No. 90-8 required that all environmental contamination costs be expenses as incurre ...