Obstacles Facing Accountancy Application for the Environmental effects in Sudan: Management Perspective

Abstract

This study tackles the obstacles that impede the ability of utilities in adopting and implementing of Accounting for Environmental Effects by addressing the determinants in the Sudanese industry environment. The study aimed at explaining the management’s perspective about the obstacles that impede its adoption and implementation of accountancy regarding the environmental effects, and to figure out the level of the different effects that hinder the adoption and implementation of accountancy from one sector to another according to the nature of each industry. To achieve the goals of the study, a questionnaire was developed and distributed to the high-level management- Managers and Account Managers- in the industry utilities at Khartoum State- Sudan. The targeted sample was (148) industrial utilities. The main findings of the study that: the determinants which hinder the adoption and implementation of accountancy are the lack of monetary standards for the environmental harm; the management is not convinced by the benefits and advantages of the implementation of accountancy regarding environmental effects, the lack of knowledge in terms of accountancy methods, and non-governmental encouragement by not offering any tax incentives to the utilities that adopt and implement accountancy, when these utilities implement this process in their records, reports, and financial statements.