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78 © Dina, Lindrianasari, and Asamaranti 2016 | Environmental Management Activity
achievement of maximal companies’ profitabil- monitor and control environmental develop-
ity. ment.
This research investigated the following re- Scope of PSAK 33 applied for general mining ac-
search question: “Do environmental manage- counting, which are related to:
ment activities influence financial performance
in mining companies that are registered in the 1. Stripping activities and early stripping to
Indonesia Stock Exchange 2011-2013?”. Gener- open the mining, stripping which is done be-
ally, this research provided empirical evidence fore the production and advance stripping
that environmental management activities do in- done during the production process.
fluence financial performance in mining compa-
nies that are registered in the Indonesia Stock 2. Environmental management activity
Exchange 2011-2013. This research is expected
to benefit academicians, companies, government Appraisal cost for environmental management
and society. activity which emerges because of exploration
activity and development recognized as asset ap-
2. Theoretical Background, Literature Re- praisal cost for environmental management
view, and Hypothesis Development which emerge because of production activity
recognized as expense.
Indonesia Statement of Financial Accounting
Standards Number 33 (PSAK 33) Environmental Accounting
Based on PSAK 33 (2011), environment is the Environmental activity is grouping cost which is
unity of space with all things, energy, conditions done by companies in doing environmental con-
and living creature, including humans and their servation to companies’ business practice. This
behavior, that influence life and prosperity of a environmental conservation activity will emerge
person and other creatures. The cost of environ- environmental cost that must be handled by the
mental management is a cost that emerges from companies. Environmental accounting can also
efforts to reduce and control the negative effects be defined as a quantitative measurement frame-
of mining activity and other daily costs. Mining work for environmental conservation activity,
activity in certain areas affects the environment which is done by the companies. Lintott (1999)
around the mining location, including but not argued that green accounting evaluates a general
limited to: measure of welfare that leads to costly manage-
ment decisions. Problems of monetary valuation
a. Dirtying the environment, including living are likely to lead to accounting procedures.
creatures, substances, energy, and other com- Industrial firms, regardless of size, can increase
ponents related to the environment and/or profits and use correct estimations of environ-
the change of environment by human activi- mental costs.
ties or natural processes such that the quality
of the environment changes. Based on the definition above, it can be explained
that environmental accounting is accounting
b. Damage to the environment due to activity that identifies measures, scores and reveals the
that causes either direct or indirect changes cost to environment of companies’ activities. En-
to the characteristics of the environment vironmental accounting in environmental ac-
and/or living environment, which causes the counting guidelines (EAG, 2005) is defined as fol-
environment not to function well and pre- lows:
vents sustainable development.
“Environmental accounting, as defined in these
In an effort to reduce and control the negative ef- guidelines, aims at achieving sustainable develop-
fects of mining activity, managing the environ- ment, maintaining a favorable relationship with
ment must be done by the companies, including the community, and pursuing effective and effi-
sustained efforts to explore, regulate, maintain, cient environmental conservation activities. These
accounting procedures allow a company to iden-
tify the cost of environmental conservation during
the normal course of business, identify benefit
Science Target Inc. www.sciencetarget.com
