Cost To Value: Opportunities And Challenges Of Integrating Environmental Accounting In Financial Reporting In Kalimantan Wetlands
DOI:
https://doi.org/10.18592/ajieb.v2i2.18725Keywords:
Cost and Value, Environmental Accounting , WetlandsAbstract
Wetlands are productive ecosystems and play a vital role in ecological, economic, and social functions. However, in South Kalimantan, wetlands face significant pressure from land conversion, mining, and oil palm plantations, posing challenges for recording and reporting environmental impacts. This study used a literature review method with content and thematic analysis of academic publications and official reports to assess the integration of environmental accounting into financial reporting. The findings indicate significant opportunities, such as improved accountability, corporate reputation, and cost reduction through resource efficiency, but also significant challenges, such as the lack of a standardized valuation methodology, limited physical and quantitative data, and the absence of a standard accounting framework for natural assets. The study results indicate a paradigm shift from a cost-based orientation to a value-based one, where ecosystems are recognized as economic assets through the application of Natural Capital Accounting (NCA). NCA integration improves accountability, transparency, and corporate reputation, and supports the achievement of the 2030 Sustainable Development Goals and the green economy agenda. Key challenges include limited data, the absence of national standards, low human resource capacity, and suboptimal institutional coordination. This study recommends the development of national ecosystem valuation standards, increased human resource capacity, pilot projects, and strengthened regulatory coordination, so that environmental accounting can become a strategic instrument for increasing economic value, ecosystem sustainability, and long-term benefits for communities and future generations.References
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Copyright (c) 2025 Muhammad Ramdhoni, Siti Najwa Farihah, Annisa Mahfuzah

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