The purpose of this research is a critical analysis of current knowledge in the field of accounting recognition policies and procedures as well as social and environmental reporting, leading to a conceptual clarification of externalities induced by global warming effects. We propose a review of FCA – Full Cost Accounting literature that allows the conventional costing model to expand to an eco-costing model able to generate costs that are compatible with the sustainable development objectives. The study represents a fundamental inductive research, using qualitative methods to identify the theoretical and practical difficulties of externalities recognition in social and environmental accounting. Thus, a pertinent knowledge base on externalities will emerge, in order to incorporate external costs into the conventional accounting model.