Recording and Financial Reports Disclosure for the Environmental Offense Transactions

Abstract

Nowadays the entrepreneur must operation with a responsibility to the society and the environment for sustainable business operations and growth. However, in the process of operation, errors may occur. When environmental faults occur there are interesting questions, how the entrepreneur must record and disclose accounting information. In this research the researcher has the objective to study 1) to study the type of offenses and penalties 2) to study guidelines for recording accounting records and disclosing information about environmental offenses to stakeholders. The researcher used qualitative research methodology by studying relevant documents. The results of the research showed that how accounting records and disclosure will be conducted depends on the nature of the offense and the penalty. 1) In the case of general offenses under the supervision and inspection by the pollution control official, the entrepreneur must record the expense for environmental offenses in that period and can either disclose or not disclose. 2) In the event that a lawsuit is brought to the court must follow the Thailand Accounting Standard No. 37 mainly. In this event can be divided into 2 sub-types, which are 2.1) in case of uncertain to lose the case and unable to estimate the contingent liability, the entrepreneur must disclose information in the notes to the financial statements regarding the lawsuit 2.2) in the certainty case that they will be lost and can estimate the debt clearly. The entrepreneur must estimate the contingent liability, record accounting transactions during the period, and disclose information in the notes to the financial statements.