The Sunday Times). This has caused chaos

The accounting profession has always played a crucial role
to the change and the growth of businesses.

The issue of accounting regarding to climate change and
global warming is that energy, tax, carbon emission has significantly increased
throughout the years. The Australian Government has been trying to reduce the
emission which caused problems to the accounting profession as they must identify
strategies in terms of budgeting, financial planning and prediction to help
businesses adapt to the change of regulations.

In 2011 Labour party’s Prime Minister – Julia Gillard was
the first person who implemented tax on carbon under the Clean Energy Act 2011.
The cost of carbon from 2012 to 2013 was $23.00 per tonne, however in 2013 to
2014 this increased to $24.15 per tonne. “It’s modelling suggested the
$23-a-tonne carbon tax would increase electricity bills Australia-wide by about
$3.30 a week on average” (PerthNow. 2012. Carbon Tax to push up power
bills by 9.1c. The Sunday Times). This has caused chaos to the
accounting industry as now it’s harder to budget the expenses and secure
increased capital to grow businesses. As Tony Abbott became the next leader of
Liberal party in 2009, he has called on a secret meeting of coalition MPs. The
meeting went successfully, and the Coalition withdrawn their support towards
carbon charges. Carbon Pricing Scheme was made to target large businesses and
industrial facilities which produced a large carbon footprint, ever increasing
each year, furthermore in 2014 as Tony Abbott became the next Prime minister,
the repel was effective from 1 July 2014, he believed all tax payers should pay
to the Carbon Emission Fund.

Accountants who understand the latest climate change and be
able to forecast its outcome will be in the spotlight of a high demand as they
are useful in giving advice to businesses. Due to this opportunity, some big
accounting firm such as KPMG and PWC, has
now advertised to the public that climate change assurance research is
now part of their services. On the other note, the biggest risk businesses will
be facing is inaccurate understanding of information in a financial perspective
about climate change and global warming could potentially cause great failures.
A detail and throughout report on climate change will evaluate the risk also
the opportunities enable businesses to act in the most sustainable, structured
and strategic ways.

In the wake of climate change and global warming, accounting
will always be needed as the profession has a huge impact on the development of
businesses. In this chaos, Government regulation constantly changing, so
finding the right balance will require a lot of specific calculation from an
accountant point of view is very important as it would lead a business to a
long-term success.