1.1 Background of Study
In general, companies publish their annual reports which
include an income statement (or profit and loss account, or statement of
comprehensive income, or statement of earnings), a balance sheet (statement of
financial position), and a cash flow statement (or statement of changes in
financial positions) and the information provided in the foot notes in such
reports in money terms. In developed countries, a significant number of
companies now disclose the impact of their activities on the environment. A review
of literature from Western and Asia-Pacific regions indicate a low level of
environmental disclosure practices but there has been a considerable increase
in the number of organizations performing environmental accounting and
reporting. (Gibbon and Joshi, 1999) This information frequently takes the form
of details about the firm's emissions into air, or waste to water, or details
of fuel and materials used. Some reports are more detailed than others and may
be descriptive or include quantitative data produced from environmental
performance indicators. In Bangladesh, there is still no disclosure in the
financial statements of companies in this regard. As environmental legislation
is strengthened and becomes more intense, companies will be required to take a
cleaner approach to production.
