All agricultural companies engaged in the breeding and sale of live cattle, production and sale of milk, production and sale of palm oil fruit, belonging to the border areas of Venezuela are presenting many inconsistencies as well as irregularities in the registration of environmental costs where there is no guarantee of effective management in the financial statements to comply with environmental matters.

It should be noted that the accounts do not show the application of instruments for financial measurement, so as to reveal the recording of source documents referring to the environmental expenses caused by the company's productive activity.

Likewise, the environmental accounting process lacks records for the separate identification of costs and revenues related to the environment, which brings a serious situation because it is presumed that they are not taking into account the environment but only the exploitation of land and air.

In the same direction, the financial statements do not show an exercise based on reports that record environmental costs produced by the company, that is to say, the operational data do not offer useful information to make decisions in terms of environmental protection.

In short, it seems that the accounting administration does not focus its conventional accounting on financial planning relevant to environmental sustainability, which should be promoted and examined by means of environmental accounting.

In this order of ideas, the described aspects could be promoted by: scarce concern for correctly accounting the management of environmental costs by means of environmental accounting, added to this, the reduction of environmental costs would not be achieved, being able to negatively affect the sustainability of the local environment.

Topics