A Study on the Attitude of Accountants Towards Environmental Disclosures in Papua New Guinea (A study funded by Oceania Development Network)

DOI: 10.5176/2251-1997_AF14.54

Authors: Professor Lekshmi Narayana Pillai, Associate Professor. Ken Ngangan, and Mrs. Benedicta Gabonen Mellam

Abstract:

Rapid industrialization since Eighteenth century and up to the present time has come at the cost of exploitation of natural resources and damages to environment around the globe. These damages to the environment lead to the unpredictable behaviour of nature as evidenced by unusual monsoons, number, frequency and level of hurricanes, melting of Ice Mountain in North Pole, extinction of species and plants, higher level of carbon deposits in the atmosphere etc. The environmental scientists have already declared that it may take several centuries to recover and/or in some cases the damages are irreversible, even if the carbon emission and pollution are stopped completely.
This situation brings more responsibilities to the corporate world. The Corporate world is increasingly insisted by stakeholders to reveal facts about environmental cost, environmental liabilities and environmental risks through various reports, especially through the financial reports. However, the lack of clear direction from provisions of law and Accounting Standards and also attitudes and awareness of accountants do not help facilitate adequate and complete disclosures of financial and non-financial information in an organisation’s report.
This research study aims to investigate the attitude of accountants towards the disclosure of environmental issues and Accountants perception of net cost and benefit of disclosure of such information. For the purpose of the study the researchers have collected data from 188 practicing accountants in Papua New Guinea. The result is processed using weighted average and ranking method. As the result of the study is overwhelming, it will guide the policy makers and Accounting body of PNG to the next level with regards to disclosure issues of Environmental aspects of corporate bodies.

Keywords: Attitude of Accountants, Cost and benefits of disclosures of environmental related information, Environmental policy and environmental regulations, Environmental accounting, Environment Act, Environmental Disclosures, Environmental risks, Expenditures related to environmental performance, Financial Reporting, International Financial Reporting Standards, Papua New Guinea