Analysis of literature on how environmental facts affect financial information

Abstract

Due to economic development, globalization, financial information and audit standards, the expansion of markets, which have generated an environmental deterioration, caused by the different emissions carried out by companies that pollute the environment, has now become of great concern worldwide and because of this companies around the world must start making environmental disclosures within their financial reports. However companies do not know how to account for the risks and environmental damages they cause. Therefore, the present article makes a short review on the different existing literature that deals with the issue of how environmental facts affect accounting facts. In the current 21st century, it is not mandatory for companies to measure or disclose an environmental fact in their financial statements, but some because of their different environmental consequences have welcomed internal policies to reveal an environmental fact in an accounting line, it is important to highlight. Which in the regulations in its different laws shows some parameters to make such disclosure.