Concept of Resource accounting, aim, origin and methods of resource accounting, advantages and disadvantages of resource accounting. Conclussion and future prospects

1. Presented by-
Ananya Bharadwaj
P.G. 3rd Semester
Roll No.-09
M.C. College, Barpeta

2. Introduction
 Resource accounting is an
accounting system which
provides information on stock
of resources available at
particular place and time. It is
a process of estimating the
value of natural resource
depletion and environmental
degradation due to economic
activities.

3. Origin of Resource Accounting
 The System of National Accounts (SNA), which is an accounting
framework measures only the economic activities of production,
consumption and accumulation of wealth in an economy and provides
for analyzing and evaluating the performance of an economy during a
period of time. Further, major development has been adoption of
integrated System of Environmental and Economic Accounting(SEEA)
which describes the interrelationship between the economy and the
environment. Unlike the conventional accounting system,this system
provides for computing the depletion of resources and environmental
degradation. That is how resource accounting is originated.

4. Aim of Resource Accounting
To provide information of the state of resource and the
change affect them.
Aims to increase in sustainable development.
Aims to maintain and restore the resources.
Aims to provide a framework for organizing
information on the status, use and value of natural
resources and environmental assets as well as
expenditures on environmental protection resource
management.

5. Resource Accounting Methods
 Physical accounts: Physical accounts of natural and
environmental resources enumerate changes in resources
quantity and quality in physical units such as barrels of oil.
 Monetary account: The monetary approach to natural
resource accounting is found on the premise that income
aggregates, such as GNP and NNP, give a distorted view of
economic progress.
 Satellite account: Satellite accounts are natural resource
accounts that are kept separate from the core national
income accounts. They can be reported in either physical or
monetary units.

6. Advantages
Resource management.
Policy planning.
Identification and accounting the natural resources
within the economy.
Monitoring sustainable development goals.

7. Disadvantages
It is a long term process therefore it doesnot give any
conclusion.
Collection of authentic data and valuation of resources
in monetary terms.

8. Conclusion
 India is yet to commence any form of annual
environmental accounting of its resources. Thus, any
progress towards preparation of resource accounting
would hinge upon the idea of continuous generation of
reports, at prescribed intervals. The flexibility in
designing the resource accounts as per the need of the
respective country, implementation has been planned
in a phased manner in respect to nonrenewable
resources to start with and thereafter rolled out to
cover the renewable resources.