ABSTRACT
Environmental reporting should reflect the response and pace of progress of entities operating at the micro level. This chapter summarises the discussion paper 'Towards a Generally Accepted Framework for Environmental Reporting' prepared by the Environmental Task Force of the European Federation of Accountants. The aim of the discussion paper is to encourage discussion between accountancy professionals, providers of environmental information and stakeholder groups regarding the introduction of a framework for qualitative characteristics in environmental reporting. The practical application of the accruals basis of accounting requires that the results or impacts of activities should be disclosed in the period in which those activities occur. In financial reporting use of the accruals basis is driven by recognition of the 'critical event'. Liabilities for environmental costs will need to be recognised in the financial statements under the going-concern concept, as long as there is either a legal or constructive obligation present.
