Eco Accounting

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Treatment of Consolidated Environmental Accounting

The business activities of companies and other organizations in the modern socio-economic system have expanded in scale, diversified, and become globalized to a degree not experienced previously. A great number of companies have been established corresponding to each purpose, and group management is practiced.
In a group management system, the independent decision-making ability of group companies is limited. At the same time, the primary objective becomes management of the group, limiting the environmental impact of the holding company itself, which essentially consigns functions such as production, sales, and distribution. In such cases it becomes difficult to perceive the actual
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(1) Aggregation of Environmental Conservation Cost
The double booking of environmental conservation cost through internal transactions conducted among members of the same business group should be eliminated to the greatest extent possible.

(2) Calculation of Environmental Conservation Benefit
In principle, the environmental conservation benefit calculated for each member of the same business group is to be combined. Benefit clearly double booked is to be eliminated.

(3) Calculation of Economic Benefit Associated with Environmental Conservation Activities
In principle, the economic benefit calculated for each member of the same business group is to be combined. Benefit clearly double booked is to be eliminated.

Treatment of Equity Ratio in Aggregation
Methods for aggregating the environmental accounting data for related companies include aggregating the total or gross amount, or aggregating amounts or volume multiplied by the equity ratio of each related company.

Disclosure of Environmental Accounting Information

The Guidelines recommend the voluntary disclosure of environmental accounting information from the standpoint of the external functions of environmental accounting, by means of the environmental report.
While the Guidelines provide consideration of a simple approach
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