Research on environmental reporting

While environmental reporting encompasses both recognition and disclosure, environmental accounting encompasses only recognition, measurement of those amounts, and display. The question of when to recognize loss contingencies, including those stemming from environmental matters, is addressed by FASB Statement No. 5, Accounting for Contingencies. That Statement defines a contingency as an existing condition, situation, or set of circumstances involving uncertainty that will be resolved when one or more future events occur or fail to occur. Although environmental reporting is not currently on the FASB's agenda, the likelihood is growing that at least some aspects of it will eventually be added to the agenda. In the meantime, others also will be trying to address issues associated with environmental reporting. Accordingly, the time is right for research that would help the FASB and others address the financial reporting questions associated with environmental costs and obligations.