Environmental Accounting Essay

3250 words - 13 pages

INTRODUCTIONEnvironmental Accounting is defined as an important tool for understanding the role played by the environment in the economy as a mutual relationship is identified between the two. Environmental accounting prepares accounts that exhibit the cost of environmental conservation during the normal course of business. This article highlights the growing importance of environmental accounting, lists the countries adopting it and finally explains its various methods.The relationship between the environment and economy is close and mutually beneficial. Environmental accounting is an important tool for understanding the role played by environment in the economy. Environmental accounts furnish data pertaining to the role of natural resources in bringing economic well-being and the costs imposed by pollution or resource degradation. Environmental accounting prepares accounts that exhibit the costs and effects of environmental conservation activities. Introduction of environmental accounting helps in improving the effectiveness of one's conservational activities. It is also sometimes referred to as "resource accounting", "green accounting" or "system of integrated economic and environmental accounting" (SEEA).The Ministry of Environment, Japan in its Environmental Accounting Guidelines, 2002 states that the aims of environmental accounting are to achieve sustainable development, maintain a favorable relationship with the community and pursue efficient and effective environmental conservation activities. Precisely speaking, it allows a company to identify the cost of environmental conservation during the normal course of business, identify benefits gained from such activities, provide the best possible means of quantitative measurement (in monetary value or physical units) and support the communication of its results.According to IUCN of the World Conservation Union, environmental accounting refers to the modification of the System of National Accounts (SNA) to incorporate the use or depletion of natural resources. The UNSTAT (United Nations Statistical Division) prescribes a standard format for the preparation of SNA to calculate major economic indicators like gross domestic product, gross national product, savings, trade balance, etc., by the various countries of the world. Environmental accounting emerges when the depletion of natural resources are included in the SNA.This paper focuses on the growing importance and various methods of environmental accounting prevailing in the world. The progress of various countries, including Japan, in the environmental accounting arena has also been highlighted here. The steps suggested by the World Conservation Union have been discussed for making environment accounting practices qualitative and operational.GROWING IMPORTANCE OF ENVIRONMENTAL ACCOUNTINGAdmittedly, environmental conservation is assuming greater significance than ever before for attaining sustainable development in the world. Sustainable...

Find Another Essay On Environmental Accounting

Regulatory Bodies Concerning Transocean vs. Chevron

1741 words - 7 pages future benefits or contribute to future revenue generation. Remediation costs are accrued based on estimates of known environmental exposure even if uncertainties exist about the ultimate cost of the remediation. Such accruals are based on the best available non-discounted estimated costs using data developed by third party experts. With the introduction of the Sarbanes-Oxley Act of 2002 (SOX), the accounting practices of foreign companies have

Becoming a CPA (Certified Public Accountant).

1285 words - 5 pages improve the quality of information, or its context, for decision makers. Such information can be financial or non-financial, about past events or conditions or about on-going processes or systems.Environmental Accounting- CPAs get involved in everything form environmental compliance audits and systems and procedures audits to handling claims and disputes.Forensic Accounting- looks beyond the face value of accounting records to determine if fraud

Need for Harmonization of International accounting standard.

1995 words - 8 pages Introduction (Need for Harmonization of International accounting standard) As there has been a tremendous growth in the market place with the existing accounting practices, this leads us to question why do we need harmonization of International accounting standards, what are its advantages and what are the barriers that hinder harmonization? Although accounting may be the "language of business," a common language has never been necessary -- at

Economic activity is conducted by separately identifiable units.

1966 words - 8 pages The purpose of this essay is to look at the sustainability issues as a framework for understanding corporate environmental responsibility. The corporate accountability concept will be considered as well as impact of the stakeholders and other pressure groups upon the organisation and its environment. Social accounting and limitations in traditional accounting, when it comes to accounting for the environment, will be discussed. Finally, the last

International Business Financial & Management Accounting

6097 words - 24 pages : Voluntary Action and the Global Agenda. West Hartford, U.S.: Kumarian.Long, B. L. 2000. Global competition: The environmental dimension. Business Economics 30 (2): 45-50.Loning, H. 1996. Behind accounting instruments and textbooks: A comparative and interdisciplinary perspective on managers' perceptions and management practices in the UK and France. Paper presented at the 19th Annual Congress of the European Accounting Association, Bergen, Norway (May

Accrual Basis Accounting: Businesses Record Transactions as They Occur

2629 words - 11 pages ;………………....5Accounting for the Costs to treat Environmental Contamination…………………7Coping with FASB Statement No. 106-- "Accounting for Post-retirementBenefits Other Than Pensions…………………………………………………8On the Implementation of

Area of Study Guidelines for Business Management and Economics

1396 words - 6 pages I will pursue a Bachelor’s Degree of Science in Business Management and Economics with a concentration in Accounting. Completion of these studies at Empire State College will allow me to achieve my personal and professional goals without compromising my life’s responsibilities. The goals that I have planned for myself are quite common. The main goal is to achieve the self-confidence and self-satisfaction derived from becoming an educated

Strategic Management Accounting

2688 words - 11 pages still no comprehensive framework as to what constitutes strategic management accounting. Basically the management accounting practices has one or more of the following characteristics: environmental or marketing orientation, focus on competitors and long term forward-looking orientation. To implement these criteria there are twelve main key recommendations have been identified: attribute costing, brand value budgeting and monitoring, competitor

financial accounting

1608 words - 6 pages CHAPTER 2 REVIEW1. Chapter 2 outlines the development of a conceptual framework for financial accounting and reporting by the FASB. The entire conceptual framework is affected by the environmental aspects discussed in Chapter 1. It is composed of basic objectives, fundamental concepts, and operational guidelines. These notions are discussed in Chapter 2 and should enhance your understanding of the topics covered in intermediate

Harmonisation of accounting standards.

2416 words - 10 pages international harmonisation process, which the IASB has to overcome,are the differences between nations. These alteration in Accounting Practices are results of specific environmental factors, which have shaped them. Therefore, one of the first problems with standardisation I conclude is that the result of the harmonisation process could neither be a copy of the Anglo-American Model nor one of the Continental-European Model. The Anglo-American Model is

The Acid Rain Program

2251 words - 9 pages http://unfccc.int/methods_and_science/lulucf/items/4129.php Stavins, R.N. (2001). Experience with market-based environmental policy instruments. Resources For the Future, 01-58. World Resource Institute (2004). A corporate accounting and reporting (pp. 3-91). http://www.ghgprotocol.org/files/ghgp/public/ghg-protocol-revised.pdf. European Union, European Union Emissions Trading Scheme (EU-ETS). (n.d.). Insights and opportunitieshttp

Similar Essays

Cost Accounting Essay

1157 words - 5 pages . Works Cited Accounting Tools. (2012). Process costing / process cost accounting. Conway-Schempf, N., & Ph, D. (2001). Full cost accounting: A course module on incorporating environmental and social costs. Financial terms [Batch cost]. (2012). Retrieved from http://www.finance-lib.com The importance of cost accounting. (2011). Khan, M. (2010). How cost accounting serves to management process in an organization

How The Merchants Of Venice Created Modern Finance By Jane G. White

1278 words - 5 pages How the Merchants of Venice Created Modern Finance, Jane Gleeson-White explores the development of double-entry accounting from its ancient roots up to its impacts on modern day society. She shows that the effects of double-entry accounting are widespread and encompass almost every aspect of life, not just those involving accounting and finance. Gleeson-White delves into topics ranging from the economic system of capitalism to environmental

Cost Systems Essay

961 words - 4 pages costs connected with present and future environmental changes (IISD, 2011). Consequently, FSA relates LCC’s financial impact of the stages of a product, service, or activity by accounting for the full societal and environmental costs incurred (“Expressing Environmental Impact,” 2003). Contrast The three costing systems provide corporations the ability to make management and production decisions related to social and environmental sustainability

Becoming A Cpa Essay

1422 words - 6 pages financial statement users that a company’s financial position is reported fairly.  Assurance Services- is defined as services provided by a CPA that improve the quality of information, or its context, for decision makers. Such information can be financial or non-financial, about past events or conditions or about on-going processes or systems.  Environmental Accounting- CPA’s get involved in everything