Accounting Best Practices

Question: Discuss about the Accounting Theory and Practices. Answer: Effect of Oil Spill of British Petroleum on Naval Ecosystem According to the environmentalists, it has been noted that there are various kinds of oil spills and each of the category of oil spill is regarded as the cause to pollution. On the basis of the occurrence of the oil spills, these are of two patterns, firstly intentional oil spill and secondly, accidental oil spill. The later one has been named after its during of occurrence i.e. as this type of oil spill occurs accidentally. It has been found that the accidental oil spills take place due to several factors[1]. On the other hand, the intentional oil spills occur due to carelessness, ignorance and negligence of the employees of the firm as well as its management department. It has been found that all these kinds of oil spills have negative impact on the ecosystem, environment, social and ecological wealth. Therefore, the firm British Petroleum Limited is liable for paying fines to the government of the country as it is responsible for causing several oil spills in the naval ecosystem[2 ]. Thus, it can be said that British Petroleum Limited should also provide cleanup cost to the government of the nation for maintaining a healthy environment. In addition to these, it has been found that British Petroleum Limited aimed to conceal the truth that its operations are answerable for causing harm to the ecology. The detection of harm caused to the environment and its measurement is very difficult and the firm measures it with respect to time and monetary value. Need for implementation of Modified Ecosystem Services for Controlling Risks It has been noted that most of the investors as well as the stakeholders of the firm British Petroleum Limited trust on the corporation and think that it would consider certain approaches for preservation of social wealth as well as ecosystem. The reason behind this is that the corporation follows both the ethical standards and the moral values in its operations[3]. Additionally, for making the investors as well as the stakeholders more dependable to the firm, it should incorporate the accounting standards of environment[4]. Moreover, it can be said that the accounting standards of environment should be included by the firm British Petroleum Limited as this assist the firm to build a strong and reliable relationship with the ecosystem, social wealth, economical wealth and commercial means. Need for Regulation Framework for Distinguishing Restoration Expense Opined to various detailed studies and analysis, it has been noted that most of the organization that deal with the petroleum are able to save themselves from any kind of penalty, fine or punishment. The reason behind this is that the firms of this particular oil and gas sector are able to take help through political bargaining. However, from detailed analysis, it can be said that this particular approach of political bargaining is not sufficient for recovering the damages done by the firm British Petroleum Limited to the environment and the ecosystem. In addition to this, it has been found that there is a particular method called process-oriented structure and by implementation of this specified loom, the firms of the oil and gas sector can review the connected risks[5]. Therefore, the mentioned approach is regarded as an essential procedure for each firm of the specified industry. It has been found that the accidental oil spills generally take place in the petroleum industry due to crash of autocratic outfit. However, the main cause for this factor is that this particular method gives a characterized account in the environment and the naval ecosystem. Moreover, the data and information regarding or about any organization that have been exposed to the market are found to regard as a significant factor and the cause behind this is that this aspect helps the management department of the firm to estimate the effort point. The effort point is detected or projected as this is required for restoration expense of the firm i.e. British Petroleum Limited for the process of recovering the damages that have been done by the particular corporation to the ecosystem[6]. As a result, the lack of regulation outlines might affect the operations and regulations of the corporation British Petroleum Limited negatively. In addition to this, based on the detailed analysis, it can be said that this lack in the regulation framework of the specified corporation might harm the firm by keeping the organization unable to identify the renovation cost. For that reason, the process-oriented structure is considered as a obligatory factor for the improvement of the operations of British Petroleum Limited. References Bp.Com,Bp.Com, 2017 https://www.bp.com [accessed 22 January 2017] Bragg, Steven M,Accounting Best Practices, 1st edn (Hoboken, N.J.: John Wiley Sons, 2013) Chatterjee, Kalyan and William Samuelson,Game Theory And Business Applications, 1st edn (New York: Springer, 2014) Davison, Jane, "Visualising Accounting: An Interdisciplinary Review And Synthesis",Accounting And Business Research, 45 (2015), 121-165 https://doi.org/10.1080/00014788.2014.987203 Ruppel, Warren,Wiley GAAP For Governments 2015, 1st edn (Chichester: Wiley, 2015) Tilt, Carol A., "Accounting For Biodiversity",Accounting And Business Research, 45 (2015), 651-653 https://doi.org/10.1080/00014788.2015.1025528 Warren Ruppel,Wiley GAAP For Governments 2015, 1st edn (Chichester: Wiley, 2015). Bp.Com",Bp.Com, 2017 https://www.bp.com [accessed 22 January 2017]. Steven M Bragg,Accounting Best Practices, 1st edn (Hoboken, N.J.: John Wiley Sons, 2013). Carol A. Tilt, "Accounting For Biodiversity",Accounting And Business Research, 45.5 (2015), 651-653 https://doi.org/10.1080/00014788.2015.1025528. Jane Davison, "Visualising Accounting: An Interdisciplinary Review And Synthesis",Accounting And Business Research, 45.2 (2015), 121-165 https://doi.org/10.1080/00014788.2014.987203. Kalyan Chatterjee and William Samuelson,Game Theory And Business Applications, 1st edn (New York: Springer, 2014).