IAI plans 'green' accounting standard<\/p>\n
Zakki P. Hakim, Jakarta<\/p>\n
The Office of the State Minister for the Environment signed a
\nmemorandum of understanding (MoU) on Tuesday with the Association
\nof Indonesian Accountants (IAI) for a collaborative effort to
\nestablish a new accounting standard that would enable financial
\nstatements to also reflect the level of environmental
\nresponsibility of companies.<\/p>\n
Minister Nabiel Makarim said that with such a standard, annual
\nreports would not only show a company's financial performance but
\nalso what it was doing to preserve the environment.<\/p>\n
\"We want the market to be able to see whether a company is
\nenvironmentally responsible or not,\" Nabiel explained.<\/p>\n
Nabiel said the environmental performance rating program
\nlaunched by his office recently had also affected the business
\noperations of the firms that had received ratings.<\/p>\n
The program establishes five categories, gold, green, blue,
\nred and black, respectively reflecting company compliance with
\nenvironmental regulations.<\/p>\n
\"The companies that were assigned a red rating told me that
\nthey have had difficulties in finding investors, export partners
\nand in obtaining loans. Some also said their shares had weakened
\non the stock market,\" Nabiel said, adding that these companies
\nwere now working to improve their ratings.<\/p>\n
Nabiel said that the incorporation of environmental
\nresponsibility in financial statements would push companies to be
\nmore careful in dealing with their waste and the local
\nenvironment.<\/p>\n
IAI chairman Ahmadi Hadibroto, however, could not say when the
\nnew accounting standard would be implemented.<\/p>\n
\"We are now discussing it with all the stakeholders,\" he said.<\/p>\n
Meanwhile, head of accounting and disclosure standards at the
\nIndonesian Capital Market Supervisory Agency (Bapepam), Anis
\nBaridwan, welcomed the plan to make companies more responsible in
\nprotecting the environment.<\/p>\n
\"We welcome the minister's effort, but we don't know whether
\nthe standard should be a requirement or merely a guideline, as we
\nwould like to see companies applying it voluntarily, rather than
\nbeing obliged to,\" Anis said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/iai-plans-green-accounting-standard-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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