The Environment Accounting: The Benefits Of Environmental Accounting

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Environmental accounting has been accepted as an umbrella term with the

various meaning and user, as presented in chat. I Basically, the

environmental accounting is the treatment of various environmental issues of

the corporate with in the financial statements. Environmental accounting

includes estimation of environmental expenditures, its actual determination,

and recognition of environmental liabilities as well as, disclosure of all

environmental liabilities in a specific section of the annual reports of a

company. The modern business approaches like as activity based

management costing, TQM, business process-reengineering. Life cycle

designing, Life cycle assessment, life cycle costing, etc. provide the platform

for integrating environmental …show more content…

- Physical data related to the reduction of toxicity and waste.

- Present and future capital expenditures for pollution prevention and

control.

- Present and future costs for products as well as processes re-design.

- Estimation of future environmental costs and benefits.

Although environmental accounting and reporting are voluntary exercise

but professionals engaged in environmental accounting bodies, financial

analysts and other stakeholders are increasingly demanding the disclosure

and reporting of environmental related financial data, to enable them to

distinguish between good and bad performers. The organizations that opt

to disclose environmental issue in their statements get various benefits, as

given below:

(i) Improved image of the product or company which leads to

improvement in sales and ultimately profitability

(ii) Better borrowing access from the shareholders / bankers /

creditors.

(iii) Improvement in the health / safety of the workers which will help

to increase in productivity.

(iv) Lower labour turnover ratio, thereby reducing recruiting cost.

(v) Enhanced image with in the eyes of stakeholders because the

organization will get the special

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