SE17.26 How to prepare and analyse an environmental cost report LOG STAIRCASE 17.5 At the end...

 

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SE17.26 How to prepare and analyse an environmental cost report LOG STAIRCASE 17.5 At the end of June 2017, EZY Pharmaceuticals implemented an environmental quality management program. As a first step, EZY adopted an environmental management accounting (EMA) system from 1 July 2017, and from the data gathered during the year identified the following environmental-related costs for the 2019 financial year. Particulars Inefficient materials usage Treating and disposing of toxic waste Clean-up of chemically contaminated soil Testing for contamination Operating pollution control equipment Maintaining pollution control equipment Performing environmental studies Verifying supplier environmental performance Training (environmental related] Environmental Cost for 2019 $1750000 6130000 2250000 726000 1237245 636155 175000 151000 95000 SE17.27 How to prepare and analyse an environmental financial report LOG STAIRCASE 17.5 Use the information in SE17.26 combined with the following information to complete the exercise. Suppose EZY Pharmaceuticals appoints a new environmental manager. She examines the report and makes the following comment: This report provides information about the environmental costs but EZY does not produce a report about the benefits from adopting this strategy. The following list of benefits is compiled by the new environmental manager. This list comprises the current cost saving and cost avoidance sources that represent benefits in the 2019 year when compared to the 2018 financial year environmental costs. Cost reductions, contaminants clean-up Cost reductions, treating and disposing of toxic waste Ongoing energy conservation cost savings Ongoing packaging cost reductions Required: 1 $1350 000 940000 354000 423000 Calculate and prepare an environmental financial report for the year ended 30 June 2019, including the relevant categories of benefits: 111 income, 121 current savings and (3) cost avoidance longoing savingsl. 2 Provide a brief analysis of the environment financial report by comparing the environmental benefits to the environmental costs lyour answer for SE 17.241 for EZY Pharmaceuticals. SE17.26 How to prepare and analyse an environmental cost report LOG STAIRCASE 17.5 At the end of June 2017, EZY Pharmaceuticals implemented an environmental quality management program. As a first step, EZY adopted an environmental management accounting (EMA) system from 1 July 2017, and from the data gathered during the year identified the following environmental-related costs for the 2019 financial year. Particulars Inefficient materials usage Treating and disposing of toxic waste Clean-up of chemically contaminated soil Testing for contamination Operating pollution control equipment Maintaining pollution control equipment Performing environmental studies Verifying supplier environmental performance Training (environmental related] Environmental Cost for 2019 $1750000 6130000 2250000 726000 1237245 636155 175000 151000 95000 SE17.27 How to prepare and analyse an environmental financial report LOG STAIRCASE 17.5 Use the information in SE17.26 combined with the following information to complete the exercise. Suppose EZY Pharmaceuticals appoints a new environmental manager. She examines the report and makes the following comment: This report provides information about the environmental costs but EZY does not produce a report about the benefits from adopting this strategy. The following list of benefits is compiled by the new environmental manager. This list comprises the current cost saving and cost avoidance sources that represent benefits in the 2019 year when compared to the 2018 financial year environmental costs. Cost reductions, contaminants clean-up Cost reductions, treating and disposing of toxic waste Ongoing energy conservation cost savings Ongoing packaging cost reductions Required: 1 $1350 000 940000 354000 423000 Calculate and prepare an environmental financial report for the year ended 30 June 2019, including the relevant categories of benefits: 111 income, 121 current savings and (3) cost avoidance longoing savingsl. 2 Provide a brief analysis of the environment financial report by comparing the environmental benefits to the environmental costs lyour answer for SE 17.241 for EZY Pharmaceuticals.

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1 Environmental Financial Report Income Cost reductions contaminants cleanup 1350000 Cost ... View the full answer