Identification, measurement and recording of environmental costs: The case of companies in Serbia

Starting from the importance of proper identification, allocation, and management of costs, as well as the fact that, in addition to the economic dimension, the ecological aspect is also crucial for company operations – and considering the low level of the integration of environmental aspects into accounting practices – this paper aims to examine the extent to which companies are familiar with environmental cost-accounting methods and whether practices differ depending on the implementation of the ISO 14001 standard. The research was conducted on a sample of companies obliged to report data to the National Register of Pollution Sources. The data analysis was carried out using quantitative statistical methods, primarily descriptive statistics and non-parametric tests. The results indicate that companies pursue a reactive environmental policy, recognizing costs only after they occur, while preventive measures are neglected. Environmental costs are often hidden within general costs due to reliance on traditional accounting methods. It is concluded that the main issues are an inadequate regulatory framework and a lack of motivation. The research highlights the need for systemic changes, greater company motivation, and the improvement of the regulatory framework.