Since Sabanes-Oxley and FASB interpretation NO. 47 environmental financial reporting has become an area of concern for corporations and accounting professionals.
As intended by Sarbanes-Oxley market forces are quickly developing that are rewarding companies that manage and report their environmental cleanup obligations well and conversely, penalizing those that are non-responsive. Developments within the accounting oriented marketplace are demanding companies to identify, assess, measure and report their environmental cleanup obligations in a manner that is transparent and consistent within their industry. These disclosure obligations must be considered by the professionals that are involved in reporting and creating solutions for environmental cleanup obligations including those responsible for the legal, audit, executive, financial/accounting, environmental and real estate functions.
Through criminal and civil statutes Sarbanes-Oxley holds the corporate executive, legal and auditing communities responsible to create, implement and oversee systems that result in transparent financial reporting accurately reflecting the condition of the reporting company. However, it is the movement of shareholder and lender dollars away from non-responsive companies that may provide the highest motivation for compliance.
