NEW APPROACHES TO COSTING MODELS IN ROMANIA: THE RECOGNITION OF EXTERNALITIES
NEW APPROACHES TO COSTING MODELS IN ROMANIA: THE RECOGNITION OF EXTERNALITIES

Summary/Abstract: A set of recent international studies reveal the scarcity of coherent entity-level estimation systems able to lead to an adequate identification and valuation of social and environmental performance, despite the large number of entities claiming their concern for the environmental impact of their business activities. The status quo is mainly caused by the lack of domain-specific accounting regulation, alongside a general "information gap" in the field of the potential benefits that the financial recognition of externalities may generate. The paper presents the possibility of extending the conventional costing model, to a point where it is able to generate costs compatible with sustainable development objectives. The recognition of externalities is used to illustrate the flexible side of accounting practices.

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