The Integration of Engineering Accounting and Cost Accounting to Improve the Accuracy of Environmental Cleanup Costs in Iraqi Oil Companies
Keywords:
Engineering Accounting, Cost Accounting, Environmental, Cleanup Costs, Iraqi Oil Companies, Engineering data integration
Abstract
This study aims to explore the integration of engineering accounting and cost accounting to enhance the accuracy of environmental cleanup costs in Iraqi oil companies. Through quantitative and qualitative data analysis, the research examines the effectiveness of this integration, using a case study that combines semi-structured interviews with senior accountants and environmental engineers, along with internal reports' data analysis and environmental and economic impact assessments.The findings reveal a mixed relationship between engineering data integration and perceived benefits, with positive perceptions prevailing despite limited demographic variables' statistical impact.The study highlights significant future implications for oil companies, which face challenges in determining actual environmental cleanup costs due to reliance on traditional accounting methods. The integration of engineering and cost accounting is expected to improve environmental cost accuracy, boost operational efficiency, enhance transparency and accountability in environmental reporting, and mitigate potential risks in Iraqi oil companies
References
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O’Dwyer, E., Pan, I., Acha, S., & Shah, N. (2019). Smart energy systems for sustainable smart cities: Current developments, trends and future directions. Applied energy, 237, 581-597.
Olson, E. G. (2021). Environmental disclosures in the oil industry under new regulations. Energy Policy, 148, 111916. https://doi.org/10.1016/j.enpol.2020.111916
Orazalin, N., & Mahmood, M. (2018). Economic, environmental, and social performance indicators of sustainability reporting: Evidence from the Russian oil and gas industry. Energy policy, 121, 70-79.
Pizzi, S., Moggi, S., Caputo, F., & Rosato, P. (2021). Social media as stakeholder engagement tool: CSR communication failure in the oil and gas sector. Corporate Social Responsibility and Environmental Management, 28(2), 849-859.
Qian, W., Tilt, C., & Belal, A. (2021). Social and environmental accounting in developing countries: contextual challenges and insights. Accounting, Auditing & Accountability Journal, 34(5), 1021-1050.
Rentizelas, A., de Sousa Jabbour, A. B. L., Al Balushi, A. D., & Tuni, A. (2020). Social sustainability in the oil and gas industry: institutional pressure and the management of sustainable supply chains. Annals of Operations Research, 290, 279-300.
Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2022). Financial accounting theory and analysis: text and cases. John Wiley & Sons.
Song, M., Fisher, R., & Kwoh, Y. (2019). Technological challenges of green innovation and sustainable resource management with large scale data. Technological Forecasting and Social Change, 144, 361-368.
Alnoor, A., Chew, X., Khaw, K. W., Muhsen, Y. R., & Sadaa, A. M. (2024). Benchmarking of circular economy behaviors for Iraqi energy companies based on engagement modes with green technology and environmental, social, and governance rating. Environmental Science and Pollution Research, 31(4), 5762-5783.
Alshehhi, A., Nobanee, H., & Khare, N. (2018). The impact of sustainability practices on corporate financial performance: Literature trends and future research potential. Sustainability, 10(2), 494.
Andersen, A. D., & Gulbrandsen, M. (2020). The innovation and industry dynamics of technology phase-out in sustainability transitions: Insights from diversifying petroleum technology suppliers in Norway. Energy Research & Social Science, 64, 101447.
Bridge, G., Özkaynak, B., & Turhan, E. (2018). Energy infrastructure and the fate of the nation: Introduction to special issue. Energy research & social science, 41, 1-11.
Cuckston, T. (2018). Making accounting for biodiversity research a force for conservation. Social and Environmental Accountability Journal, 38(3), 218-226.
Ebaid, I. E. S. (2022). Sustainability and accounting education: perspectives of undergraduate accounting students in Saudi Arabia. Journal of Applied Research in Higher Education, 14(4), 1371-1393.
Fethi, S., & Rahuma, A. (2020). The impact of eco-innovation on CO2 emission reductions: Evidence from selected petroleum companies. Structural Change and Economic Dynamics, 53, 108-115.
Haque, F., & Ntim, C. G. (2018). Environmental policy, sustainable development, governance mechanisms, and environmental performance. Business Strategy and the Environment, 27(3), 415-435.
Ibrahim, Y. M., Hami, N., & Othman, S. N. (2019). Integrating sustainable maintenance into sustainable manufacturing practices and its relationship with sustainability performance: A conceptual framework. International journal of energy economics and policy, 9(4), 30-39.
Joanne L. Tingey-Holyoak, Roger L. Burritt, and John D. Pisaniello، 2013”, Integration of Macro and Micro Sustainability Issues: The Need for ‘Engineering Accounting’" International Federation for Information Processing. IFIP AICT 413, pp. 500–507, 2013.
Kamble, S. S., Gunasekaran, A., & Gawankar, S. A. (2018). Sustainable Industry 4.0 framework: A systematic literature review identifying the current trends and future perspectives. Process safety and environmental protection, 117, 408-425.
Karlsson-Vinkhuyzen, S.I., Jollands, N., Staudt, L.)2012), Global Governance for Sustainable Energy: The Contribution of a Global Public Goods Approach. Ecological Economics 83,11–18.
Kober, T., Schiffer, H. W., Densing, M., & Panos, E. (2020). Global energy perspectives to 2060–WEC's World Energy Scenarios 2019. Energy Strategy Reviews, 31, 100523.
Mohammed, Iman Shakir, INTEGRATING ENGINEERING AND SUSTAINABLE ACCOUNTING TO ACHIEVE ENVIRONMENTAL SUSTAINABILITY: AN APPLIED STUDY OF IRAQI OIL COMPANIES, World Economics & Finance Bulletin (WEFB), Vol. 39, October, 2024.p. 167-175, Available Online at: https://www.scholarexpress.net.
Ngwakwe, C.C.: Rethinking the Accounting Stance on Sustainable Development. Sustainable Development 20, 28–41 (2012).
O’Dwyer, E., Pan, I., Acha, S., & Shah, N. (2019). Smart energy systems for sustainable smart cities: Current developments, trends and future directions. Applied energy, 237, 581-597.
Olson, E. G. (2021). Environmental disclosures in the oil industry under new regulations. Energy Policy, 148, 111916. https://doi.org/10.1016/j.enpol.2020.111916
Orazalin, N., & Mahmood, M. (2018). Economic, environmental, and social performance indicators of sustainability reporting: Evidence from the Russian oil and gas industry. Energy policy, 121, 70-79.
Pizzi, S., Moggi, S., Caputo, F., & Rosato, P. (2021). Social media as stakeholder engagement tool: CSR communication failure in the oil and gas sector. Corporate Social Responsibility and Environmental Management, 28(2), 849-859.
Qian, W., Tilt, C., & Belal, A. (2021). Social and environmental accounting in developing countries: contextual challenges and insights. Accounting, Auditing & Accountability Journal, 34(5), 1021-1050.
Rentizelas, A., de Sousa Jabbour, A. B. L., Al Balushi, A. D., & Tuni, A. (2020). Social sustainability in the oil and gas industry: institutional pressure and the management of sustainable supply chains. Annals of Operations Research, 290, 279-300.
Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2022). Financial accounting theory and analysis: text and cases. John Wiley & Sons.
Song, M., Fisher, R., & Kwoh, Y. (2019). Technological challenges of green innovation and sustainable resource management with large scale data. Technological Forecasting and Social Change, 144, 361-368.
Published
2025-01-15
How to Cite
Mohammed, I. S. (2025). The Integration of Engineering Accounting and Cost Accounting to Improve the Accuracy of Environmental Cleanup Costs in Iraqi Oil Companies. International Journal on Economics, Finance and Sustainable Development, 7(1), 14-24. Retrieved from https://journals.researchparks.org/index.php/IJEFSD/article/view/5352
Section
Articles
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