The Role of Accounting Disclosure on Environmental Costs in Improving Environmental Performance: (A Field Study of The Cement Company in The City of Benghazi)

Abstract

This study aims to show the importance of environmental costs, and the role of these costs to improve the quality of financial reporting in Libyan Cement Company in The City of Benghazi and offering the suggestions to develop it. To achieve the objectives of the study, the researchers developed a questionnaire contains (17) questions, distributed to (34) Financial Manager, Accountant and costs Account Manager, and Internal Auditor collected and used in the analysis, a one sample Ttest was used however only (25) questionnaire has been returned. It seems to the researchers that there was the presence of environmental awareness and the company's strategy towards environmental issues, the study also showed there are obstacles that limit the application of measurement and disclosure of environmental costs. Moreover, it seems to the researchers that the measurement models for environmental costs increase the company's commitment to environmental responsibilities. The results of the study also showed the presence of a statistically significant relationship between applying measurement models to environmental costs and increasing disclosure of the company's commitment to its environmental responsibilities in the cement company in Benghazi, also there is a statistically significant relationship between environmental costs and the decision-making process in the cement company in Benghazi- at a significant level and finally, there is statistically significant relationship between accounting disclosure of environmental costs and improving environmental performance in the cement company in Benghazi - at a significant level. The study suggested some recommendations to develop the application of accounting for environmental costs and disclosure to provide appropriate information to rationalize and take decisions in the Cement Company in Benghazi city, as well as the need for companies to protect the environment and provide funding and support to preserve the environment.