AN ASSESSMENT OF THE EFFECTIVENESS OF ENVIRONMENTAL MANAGEMENT ACCOUNTING (EMA) AT SIERRA MINERAL HOLDINGS LIMITED IN SIERRA LEONE

Resumo

This study gives an assessment of the effectiveness of Environmental Management Accounting (EMA) at Sierra Mineral Holdings Limited in Sierra Leone. Specifically, this study focuses on the present environmental management accounting practices that the management has adopted and how risk is being assessed. The study made use of probabilistic sampling and a research design that caters to both primary and secondary data. The study made use of the mixed methods techniques that were derived from a research paradigm and strategies of inquiry that the researcher adopted, and these, however, justified the research approach. The study adopted descriptive design surveys using well-structured questionnaires and conducted personal interviews to obtain information. This piece of work used mathematical models like Benford’s Law and the KNIME Analytics Platform software to analyze and interpret data. The findings of this study revealed that there is a high awareness of environmental management accounting for the various cost categories and in the assessment of environmental risk in Sierra Leone as a developing country. The study uses an imaginary company’s income statement to explain the conventional cost as it clearly shows how environmental costs are captured in the notes of the financial statements but then lose their identity in overheads, which will prevent management from making informed decisions. Based on the findings of this study, it is prudent that organizations put modalities in place for effective management of environmental management accounting principles.