I Gede Arya Budi Antara, I Gusti Ayu Astri Pramitari

Implementation of green accounting in Kaamala Resort Ubud

Introduction

Implementation of green accounting in kaamala resort ubud. Explore the implementation of green accounting at Kaamala Resort Ubud, Bali. This study reveals simplistic environmental cost recording, proposing a tailored model for better cost analysis, informed decision-making, and significant savings.

Abstract

Green accounting is pivotal for companies addressing environmental challenges through effective financial management. Despite its recognized benefits, many organizations hesitate to adopt environmental accounting due to concerns about profitability. This research aims to analyze the implementation of environmental accounting reporting at Kaamala Resort Ubud, located in Bali. Employing descriptive qualitative methods, the study utilizes primary data from interviews with the chief accounting manager and secondary data from the resort's 2023 profit and loss report and general ledger. Data collection methods included direct observation, documentation studies, and in-depth interviews. The findings reveal that while the resort's environmental cost accounting practices align with PSAK (Indonesian Financial Accounting Standards), the recording is overly simplistic and lacks transparency, as it merges with other cost accounts. Additionally, specific reporting based on the Hansen and Mowen model has not been implemented. The study proposes a tailored model design for environmental cost accounting, highlighting the importance of effective practices for cost analysis and informed decision-making, ultimately leading to cost savings.

Review

This paper, "Implementation of green accounting in Kaamala Resort Ubud," addresses a highly relevant and pressing issue: the integration of environmental considerations into corporate financial practices. Green accounting is increasingly critical for businesses, particularly within the hospitality sector where environmental impact is significant, yet adoption is often hampered by profitability concerns. The study's aim to analyze the current state of environmental accounting reporting at a specific resort in Bali provides a valuable empirical lens into real-world challenges and practices. The qualitative, case-study approach is appropriate for an in-depth exploration of this complex organizational process, laying a foundation for understanding practical implementation gaps. The research effectively utilizes a descriptive qualitative methodology, drawing upon primary data from an interview with the chief accounting manager and secondary data from the resort's financial reports (profit and loss, general ledger). This multi-faceted data collection approach, including direct observation and documentation studies, lends credibility to the findings. The core finding reveals a nuanced picture: while Kaamala Resort's environmental cost accounting adheres to Indonesian Financial Accounting Standards (PSAK), the actual recording is characterized by a notable lack of transparency and an oversimplification, as environmental costs are merged with other accounts. Furthermore, the absence of specific, model-based reporting, such as that proposed by Hansen and Mowen, highlights a significant gap. A key strength of this study is its proposition of a tailored model design for environmental cost accounting, which promises to enhance cost analysis and support more informed decision-making, ultimately leading to tangible cost savings. While providing insightful observations, the study's scope as a single-case qualitative analysis inherently limits the generalizability of its findings. Future research could benefit from comparative studies across multiple resorts or a deeper exploration into the specific challenges and organizational culture factors contributing to the current "simplistic and merged" recording practices, perhaps incorporating perspectives from operations or sustainability managers. It would also be highly valuable to see a follow-up study on the actual implementation and impact of the proposed tailored model. Despite these suggestions for future work, the paper makes a pertinent contribution by highlighting both compliance and critical shortcomings in current green accounting practices within the hospitality sector, offering practical recommendations for improving transparency and strategic financial management.

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