 Accounting for the environmental impacts of Texaco's operations in Ecuador: Chevron's contingent environmental liability disclosuresStacie Buccina, Douglas Chene and Jeffrey Gramlich Accounting forum, 2013, vol. 37, issue 2, 110-123 Abstract: This paper examines the disclosure of a contingent legal obligation that arose as a result of Texaco Inc.’s oil drilling and extraction activities in Ecuador. We examine Texaco's and, after Texaco's acquisition by Chevron in 2001, Chevron's, financial reporting and SEC disclosures pertaining to a lawsuit claiming damages related to the environmental effects of Texaco's 30 years of operations in Ecuador. After an historical review of Texaco's drilling and extraction activities in Ecuador, and the ensuing litigation that began in 1993, we consider U.S. accounting and reporting rules as they apply to Texaco and Chevron. Given these rules, we analyze the appropriateness and timing of Chevron's disclosures related to the heretofore-unresolved litigation. The discussion employs legitimacy and stakeholder theories to explain Chevron's disclosures. Keywords: Environmental liability; Chevron; Texaco; ChevronTexaco; Financial disclosure; Ecuador; Environmental remediation; Legitimacy theory; Stakeholder theory (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:accfor:v:37:y:2013:i:2:p:110-123 DOI: 10.1016/j.accfor.2013.04.003 Access Statistics for this article Accounting forum is currently edited by Glen Lehman More articles in Accounting forum from Elsevier |
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