May-2015

Recommendations

Info

EMA etary information relevant and collected under EMA, depends on the purpose for which it is to be used (for example, investment appraisal, assessment of total amount of costs or budgeting) and thus can be collected for an organization as a whole , or for particular sites, product or service lines etc. What ever may be the purpose of collection of such data it is essential that a link be established between the all physical inputs and outputs with appropriate cost categories. In the case study of paperboard & paper production unit an attempt is made to ascertain the total amount of the environment related costs and earnings based on the ideal framework prescribed for this purpose by Eurostat United Nations Division on Sustainable Development (UN – DSD) Working Group. A detailed account of the environmental cost categories are given in Table 1.2 The guidelines define environmental costs as resources which are consumed by activities to minimize environmental impact and to maximize eco – efficiency in a given period of time. The columns in Table 1.3 show the assignment of four categories of environment-related costs: material purchase costs of non - product output, waste & emission control costs, prevention and other environmental management costs and research and development costs. These four categories are classified according to environmental domains. • Protection of Ambient Air and Climate • Wastewater Management • Waste Management • Protection and Remediation of Soil, Groundwater and Surface Water • Noise and Vibration Abatement • Protection of Biodiversity and Landscape • Protection against Radiation • Other Environmental domain categories are useful not only for compliance with external reporting requirements, but also can show interesting and useful results and trends for internal management purposes. The most widely used application is benchmarking environmental costs by domain from year to year and among multiple sites of the same organization. The total environment related costs of an organization can be assessed on the basis of the cost data collected for the purpose that can eventually be translated into the environmental performance in the “ cost and savings” form that have more relevance for a Table 1.2 Environment-Related Cost Categories 1. Materials Costs of Non – Product Outputs Includes the purchase (and sometimes processing) costs of raw materials and Auxiliary materials e.g. energy , water and other operating materials that become Non – Product Output (Wastes and Emissions).This includes the proportion of equipment depreciation and labour costs that have been used to generate waste and emissions and not the final product; Acquiring more efficient process equipment that generates less waste per unit product output. 2. Wastes and Emission Control Costs Includes costs for handling, treatment and disposal of Wastes and Emissions; remediation and compensation costs related to environmental damage; and any control – related regulatory compliance costs. This category includes : a) Depreciation of waste control equipments b) Operating materials used for waste and emission control c) for e. g. chemicals used in an on- site wastewater treatment plant. d) Water and Energy-an organizations purchase cost of water and energy that becomes wastes and emissions rather than final product. e) Internal personnel-salaries and benefits of both the full-time and part-time personnel involved in waste and emission control activities. f) External service – cost of service provided by consultants, trainers, contractors, law firm etc. related to waste and emission control activities. g) Taxes, fees and permits – examples includes solid wastes disposal fees, wastewater discharge fees, emission fees , eco – taxes; government imposed fines in addition, penalties, insurance related to accidental release of hazardous materials. 3. Prevention and Other Environmental Management costs Includes the costs of preventive environmental management activities such as cleaner production projects. Also includes costs for other environmental management activities such as environmental planning and systems, environmental measurement, environmental communication and any other relevant activities. 4. Research and Development Cost Includes costs of Research and Development projects related to environmental issues and initiatives. Source: International Guidelines on Environmental Management Accounting, The International Federation of Accountants, August 2005 pp.39 business. Environment-related Earnings: are derived from sale from scrap or waste (for Reuse by another organization), subsidies, sale of excess capacity of waste treatment facilities, revenues from insurance for environment - related claims. Environment-related Savings: can be earned from reduction in use of materials and waste generation because of improvements in 80 the MANAGEMENT ACCOUNTANT MAY <strong>2015</strong> www.icmai.in
Table 1.3 shows an ideal framework for Environmental cost assessment scheme developed for the UN- DSD EMA working group. Table 1.3 Ideal Framework for Environmental cost and earnings assessment Environmental Domain Air + Climate Waste Water Waste Soil + Ground Water Noise & Vibration Biodiversity & Landscape Radiation Others Total Environment related Cost Categories I . Material purchase costs of Non - Product Output Raw Materials Packaging Auxiliary materials Operating materials Energy Water Processing Costs of Non - Product Output Subtotal II. Waste & Emission Control Costs Equipment depreciation Operating materials and services Internal Personnel Fees, Taxes and fines Subtotal III. Prevention and Other Environmental Management Costs External Services for environmental management Internal personnel for environmental protection Subtotal IV. Research and Development Costs I - IV. Environment -related Cost total Environment - related Earnings Total Total Environment - related Costs & Earnings www.icmai.in MAY <strong>2015</strong> the MANAGEMENT ACCOUNTANT 81
Page 1:
SPECIAL FOCUS INSIDE ‘CMAs can id
Page 4 and 5:
May 2015 Inside COVER STORY MAY 201
Page 6 and 7:
FROM THE EDITOR’S DESK Greetings!
Page 8 and 9:
PRESIDENT’S COMMUNIQUE Certificat
Page 10 and 11:
PRESIDENT’S COMMUNIQUE a “Pract
Page 12 and 13:
ICAI-CMA SNAPSHOTS PP and CCM, ICAI
Page 14 and 15:
COVER PRESIDENT’S STORY COMMUNIQU
Page 16 and 17:
Page 18 and 19:
Page 20 and 21:
Page 22 and 23:
Page 24 and 25:
Page 26 and 27:
Page 28 and 29:
Page 30 and 31: COVER STORY “Business is the main
Page 32 and 33: COVER PRESIDENT’S STORY COMMUNIQU
Page 34 and 35: COVER STORY COMMUNICATING VALUE TO
Page 36 and 37: INTERVIEW 'CMAs CAN IDENTIFY BUSINE
Page 38 and 39: TAXATION OF HOLOGRAMS, FREE WARRANT
Page 40 and 41: TAXATION present case, we are addre
Page 42 and 43: TAXATION WIDENING THE TAX BASE Indi
Page 44 and 45: TAXATION formation about foreign cu
Page 46 and 47: TAXATION Non-resident taxation has
Page 48 and 49: TAXATION are inter-connected throug
Page 50: TAXATION Commission Recharge vouche
Page 53 and 54: ordered item which was not in stock
Page 55 and 56: AUDITING EXPLORING MISSTATEMENTS Th
Page 57 and 58: whether the new transaction data se
Page 59 and 60: statement. When Yi ≠ 0 the fracti
Page 61 and 62: PRECISION IS NARROWED DOWN, IF ADDI
Page 63 and 64: INTERNAL AUDIT: ITS ROLE IN CORPORA
Page 65 and 66: the effectiveness of controls, as a
Page 67 and 68: THE INTERNAL AUDITOR, WHO HAS AUDIT
Page 69 and 70: THE ENGAGEMENT OF THE INTERNAL AUDI
Page 71 and 72: the future is very positive in Indi
Page 73 and 74: IN THE NEWS THERE IS ONLY TALK OF D
Page 75 and 76: while in the United States, it’s
Page 77 and 78: EMA EMA FOR SUSTAINABLE DEVELOPMENT
Page 79: 2. assessment of total environment
Page 83 and 84: that reduction of the same is possi
Page 85 and 86: National Seminar on "Capital Market
Page 87 and 88: The Institute of Cost Accountants o
Page 89 and 90: cept and functions of PB, restricti
Page 91 and 92: As per RBI guidelines, PB refers to
Page 93 and 94: pected to grow at 10-15% annually.
Page 95 and 96: www.icmai.in MAY 2015 the MANAGEMEN
Page 99 and 100: ECONOMY UPDATES Income Tax CBDT Not
Page 101 and 102: can be utilized for payment of the
Page 103 and 104: Interest Rates on Deposits In refer
Page 107 and 108: ELECTIONS 2015 www.icmai.in MAY 201
Page 124: ISSN 0972-3528 Registered KOL RMS/1
show all

May-2015

Create successful ePaper yourself

Delete template?

Save as template?