EFFECTS OF THE ENVIRONMENTAL AND SOCIAL ISSUES OF AN INDUSTRIAL SECTOR COMPANY AND ITS RECOGNITION IN THE FINANCIAL STATEMENTS

"Sustainable development is one that responds to the needs of the present without compromising the future" Orrego (s / f). It is important to recognize that there is a connection between business economic growth and environmental protection that is commonly known as environmental accounting.

Due to the technological advances that facilitate intercommunication between the different world economies, the propagation of economic problems regarding the environment becomes more visible, even more when different companies present a situation of an excessive demand making organizations prevail their needs to accomplish with the customer, however without considering the environmental problems that may arise, if necessary to take care and conserve the environment in better conditions; however, due to the activism related to the environment, these situations have had some improvement where the interest for the conservation of the environment is deeper. It is important to remember that the financial information must be complete and true and must include information that covers all the environments, such as financial, social and environmental.

The environmental impact in recent years has been so strong that not only those interested in financial information are interested in ensuring good treatment to it, but it has moved to investors who are giving priority to invest in companies that ensure it, of course is not about omitting their interest in obtaining profits or financial resources, but focusing on the companies that will be favored most by the different governments and entities that give prevalence to this good practice.

The means by guidelines and excellence to present to the interested parties the economic situation of the companies is the Financial Statements. Its fundamental characteristics are issued by the IASB in the conceptual framework for financial information (2010), that reveal the faithful representation of information, where economic, social and environmental aspects are part of the good disclosure of financial information. In environmental terms, environmental accounting is a branch that aims to relate the environmental issue with the economic aspects of the companies.

"The European Environment Agency (1999) defines environmental accounting as a set of instruments and systems that are useful for measuring, evaluating and communicating the environmental performance of the company; This integrates both fiscal and monetary information with the ultimate goal of placing the company in terms of eco-efficiency. In addition, it expresses that eco-efficiency is achieved by maximizing the value of the company, while minimizing the use of resources and negative environmental impacts. " Orrego (s / f).

The objective of both terms to generate more value with less effects that damage or impact the environment, is achieved by making controls on the operations that the company has and the consequences that their practices may bring. Environmental accounting has as its premise that it is more cost-effective to prevent than to remedy, that is why it is not a matter of the industry allocating a percentage of the income to repair the damages caused, but that these never occur and, in this way, not only have an economic saving but a good business practice that benefits the environment. This type of accounting links environmental and financial policies to identify the areas that have the most impact to quantify them monetarily, and thus exercise control to reduce the cost of such impact as well as its effects.

"Environmental accounting basically uses the same criteria for accounting recognition as those used for the registration of traditional commercial transactions, a situation that prevents the inclusion in the accounting reports of the entities of significant information other than the economic-financial one; and when it is included, the recognition criteria, the concepts of capital and its maintenance, measurement and presentation-disclosure are not suitable for socio-environmental purposes ". Mejía (2010)

We can know some definitions of environmental items Environmental Assets: as stated by ICAC (2002) cited by Mejía (2010) "The elements incorporated into the entity's assets in order to be used durably in its activity, its main purpose is the minimization of the environmental impact and the protection and improvement of the environment including the reduction or elimination of future contamination of the entity's operations "are accounted as an asset.

Environmental liabilities: "Environmental liabilities are obligations related to the environmental costs of a company, which meet the criteria for recognition as liabilities. In some countries when there is uncertainty about the amount or timing of the expenses incurred to settle the liability, the environmental liabilities are called reserves for environmental liabilities. " UNCTAD (1998,7) cited by Mejía (2010)

Environmental Provisions: These are "Expenses originated in the same or a previous year, clearly specified in terms of their environmental nature, but which, on the closing date of the year, are probable or certain but indeterminate in terms of their exact amount or the date in which they will be produced "(Conesa et al, 2006, 109, Fronti de García and Wainstein, 2000, 17 and 25, ICAC, 2002) cited by Mejía (2010)

Environmental Expenditures: According to the ICAC (2002) cited by Mejía (2010) "The nature of the environmental expenses will be the amounts accrued (caused), the environmental activities carried out or that must be performed, for the management of the environmental effects of the operations of the entity, as well as those derived from the commitments of the accounting subject"

Environmental Income: Bischhoffshausen (1996,156) "identifies as environmental benefits: the saving of materials and raw materials by reduction of waste, income from sale or savings by reuse of recycled material, savings of expenses of final disposal of waste by decreasing its volume, sale of tradable emissions waste, revenues from clean technology licenses, and savings by substitution of polluting material with another non-polluting one "

Environmental Costs: Cañibano (2000) cited by Mejía (2010) states that "Environmental costs are those caused by the measures adopted by a company, or another on behalf of it, to prevent, reduce or repair environmental damage resulting of its ordinary activities or for the conservation of its renewable or non-renewable resources ":

As an example of an industrial company, we have Grupo Argos that, through its environmental management, obtained its excellence in the environmental model in 2013. Fundación Siembra Colombia grants Argos the gold seal, the highest award of the Environmental Responsibility Award Sustainable Colombia 2013. See video https://youtu.be/l7IUbnGV3QA As well as other recognitions for their outstanding environmental practices to promote their governance of environmental sustainability.

 As some activities that have been adopted for environmental sustainability, the recirculation of water and capture of rainwater in order to reduce water consumption, this decreases costs in the manufacture of its main product, cement Argos; In addition, they optimize the engine oil of their vehicles as well as the useful life of the tires by planning with their customers the distribution of their products that also helps to reduce fuel consumption. In the following illustrations we can see some of the goals that Cementos Argos has for the year 2025 and its environmental policies. All these policies are reflected in their annual integrated reports in order to inform the stakeholders of the information not only their figures for their main activities, but also their management as corporate and environmental governance.