Developing an Accounting Model

(Khaled Abdul-Aziz Attia - Saleh Abdulrahman Al-Mahmoud - Aladdin Mahmoud Zahran)

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Abstract

Measuring industrial environmental costs and benefits, is not an easy task, because the environmental impacts of an industry is not marketable. Therefore, literature has proposed calculating industrial environmental costs and benefits, by measuring its economic impacts on natural, human, and man-made capital. Based on the above argument, one could say that, ignoring the measurement of environmental impacts of industrial units, of course, would affect the sustainability of incomes and profits resulting from these units in the medium and long rum. Therefore, the current study, first, aims at developing an accounting model that could be used for measuring environmental costs and benefits of Saudi industrial sector. Second, implementing the developed accounting model on Saudi Cement Company, as a representative for industrial sector, in order to show how sustainable income or profit could be measured and disclosed in the company’s annual financial statements. Finally, the study assured the fact that measuring and disclosing industrial environmental impacts, would ensure the leading role of industrial sector for economic development in the medium and long-term.
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