The Role of Environmental Accounting and Environmental Disclosure in Improving the Reliability and Quality of Accounting Information

Abstract

The purpose of this study is to investigate the role of environmental accounting and environmental disclosure to improve the quality of the accounting information. The main assumption of this study is that there is a statistically significant correlation between environmental accounting and environmental disclosure and the improvement of the quality of accounting information. A questionnaire was used in collecting the data, the researchers distributed 55 copies of the questionnaires to a selected sample of Libyan oil companies, using random sampling technique. Forty-eight questionnaires were eventually collected. The conclusions in the findings of the research are that there is an important role that environmental accounting and disclosure can play in measuring and monitoring environmental costs and charges, increasing the transparency of the company reports, helping the company to establish a more credible position for its policies and statements, for both investors and the general public, and in finally providing good reliable data that can support management and top management to make the right decisions especially when it comes to projects with the potential of having a very high environmental impact. The results also showed that Libyan oil companies realize the importance of environmental accounting and environmental disclosure in enhancing and improving the quality of financial reports. As a result, the main hypothesis of the study can be accepted and it can be concluded that there is a statistically significant relationship between environmental disclosure, the implementation of environmental accounting on one hand and the quality of accounting information in oil companies on the other.