Why Would a Firm Continue to Pollute Even When It

question 38

Essay

Why would a firm continue to pollute even when it is fined (taxed) for doing so?

---

Definitions:

Development Costs

Costs incurred in the design and implementation of new products or processes, which can often be capitalized and amortized over time.

Actuarial Gains

Increases in the projected benefits of a pension plan resulted from changes in actuarial assumptions or variance from expected experience.

Transition Date

The specific point in time at which a new policy, regulation, or accounting principle is adopted by an entity.

Reporting

The process of preparing and distributing financial statements that reflect a company's financial performance and position.