Accounting measurement of environmental performance costs and its impact on the quality of financial reports

This study aimed to investigate the impact of accounting measurement of environmental performance cost elements on the quality of financial reporting information for industrial companies listed on the Amman Stock Exchange (ASE). The study population comprised all 53 companies listed on the ASE at the end of 2022. A questionnaire was used to collect primary data related to measuring the elements of the independent variable (ongoing environmental costs — OEC, capital environmental costs — CEC, and previous environmental costs — PEC) and an applied approach to measure the dependent variable, represented by the quality of financial reporting information. Multiple and simple regression tests were used to assess the relationship between the study variables. The results showed that the accounting measurement of current environmental performance costs had the most significant impact on achieving the quality of financial reporting information, followed by the capital environmental performance costs variable, and lastly, the previous environmental performance costs variable. These findings suggest a positive relationship between the dimensions of accounting measurement of environmental performance costs and the quality of financial reporting information, indicating that as the use of accounting measurement of environmental performance costs increases, the quality of financial reporting information for the studied companies also improves.