Environmental Accounting: its theoretical foundation based on international and Mexican Financial Reporting Standards

Abstract

It is necessary that Environmental Accounting be generated based on formal, complete, and understandable accounting standards, issued by specialized agencies. This encourages accounting professionals to be more incisive in the presentation of quantitative and qualitative information that covers aspects related to the environment. This paper aims to show the regulations that support Environmental Accounting both in Mexico and internationally. A documentary investigation was carried out, and the results affirm that there is an explicit and implicit accounting theory, related to the valuation, presentation, and disclosure of the operations carried out by the economic entities related to the deterioration and compensation of environmental damage. One of the conclusions is that there is a latent problem related to the deterioration of the environment, for this reason, it is essential that businessmen contribute to its solution, through correct decisions. Public accountants must establish criteria and techniques that respond to this situation in the financial statements; that shows the reality that organizations live in and the corrective measures, if any, that are being implemented. Another conclusion is that there is no clear direct obligation for accountants in organizations to strictly adhere to the regulations, in addition to the fact that clear and sufficient procedures are required to be followed for a relevant application.