Green accounting aims to incorporate both economic and environmental information into accounting. It identifies, measures, and allocates environmental costs into business decisions and communicates this information to stakeholders. The scope of green accounting is extensive, including direct corporate environmental investments and indirect external losses from business operations like pollution and resource depletion. The objectives of green accounting are to assess environmental costs and benefits, track changes in environmental assets and protection expenditures. It helps businesses reduce environmental costs and make more informed decisions.

1. Green
Accounting

2. • The term "environmental
accounting" is open to
interpretation. In this guideline,
the environmental accounting is
the identification, measurement
and allocation of environmental
costs into business decisions and
the subsequentcommunication
of the information to a
company's stakeholders.
Identification includes a broad
examination of the impact of
corporate products, services and
activities on all corporate
stakeholders.
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Introduction

3. Meaning:
• Green Accounting is a type of
accounting that attempts to factor
environmental costs into the
financial results of operations. It is
considered as a subset or superset
of accounting proper. It aims to
incorporateboth the economic
and environmental information.
Purpose
• The major purpose of green
accounting is to help businesses
understand and manage the
potential substitute between
traditional economic goals and
environmental goals.

4. The scope of green accounting is extensive and industry corporate in national and international
level. The following aspects are included in green accounting:​
1. Internal point of view:
• Direct investment make by a corporate for minimizationof losses to environment. It includes
investment made into the equipment or devices that help in reducing potential losses to the
environment.​
2. External point of view:
• Indirect losses due to business operations. It mainly includes degradation and destruction such
as loss of bio diversity, air and water pollution, hazardous wastes including bio-medical waste,
depletion of natural resources etc.
Scope
Internal
Point Of View
External
Point Of View

5. Objectives of Green accounting:​
• Taking the total stock of assets or reserves related to
environmental issueand changes therein.​
• Estimationof the totalexpenditure protection
or enhancement of environment.​
• To identify the part of the gross domestic product which
reflects the cost necessary to compensate for the negative
impact of economic growth i.e. the so-called defensive
expenditure to protect environment.​
• Assessment of environmentalcosts and benefits:​
1. The decrease(depletion)in naturalresources due to
their use in productionand final demand and​
2. The changes in environmentalquality resulting from
pollutionand other impacts of productionand consumption
and other naturalevents on one hand, and the expenditure
for environmental protectionand enhancement of
environmenton the other hand.
Types of Green accounting:​
1. EnvironmentManagement
Accounting: EMA incorporatesthe
environmental andeconomic
information by identifyingresource
usage and the cost of
the organization'seconomic impact on
the environment.​
2. EnvironmentalFinancial
Accounting: EFA is concerned with
accountingfor environment
transactionsthat have an impact on
the financialperformance of the
company.​
3. EnvironmentalNational
Accounting: ENA involvesNational-
level accountingwith a focus on
naturalresource and green costs.

6. • To help managers make decisions that will
reduce or eliminate their environmental costs
• To better track environmental costs that may
have been previously obscured in overhead
accounts or otherwise overlooked.
• To better understand the environmental costs
and performance of processes and products for
more accurate costing and pricing of products
• To broaden and improve the investment analysis
and appraisal process to include potential
environmental impacts.
• To support and development and operation of
an overall environmental managementsystem.
Reasons why we
must opt Green
accounting

7. Green accounting considers and records the
cost and benefit of the ecosystem for a
company which arises through environment
protection and its arrival in developing
countries like India helps greater for the
economy as it creates awareness about the
environmental pollution, its protection
and development of environment for
a sustainable future. It serves the purpose of
creating awareness and educating corporate
firms and public the importance of
environment in development of the economy .
ROLES OF
GREEN
ACCOUNTING
IN DEVELOPING
INDIA

8. Financial Accounting Green Accounting
1. Supervision and guidance
• Ministry of Finance:National Taxation Bureau.
• FinancialSupervisory Commission:Securities
and Futures Bureau.
• GAAP
• GAAS
• Users of statement.
2. Compelling
• FinancialInformation and statement
3. Followingof current laws
• Avoidanceof corporate social responsibility.
• Acquistionof Maximum benefits of
shareholders.
4. Result
• Deteriorating environment
• Resource fighting of enterprises.
1. Promotion and education.
• Environemtal protectionAdministration,
Taiwan
• Ministry of Environment,Japan
• US Enviornmental Protection Agency
• InternationalFederationof Accountants(IFAC)
• UN Division for SustainableDevelopment
2. Non-Compelling
• General disclosure statementof Green
accounting
3. Formationof lawsand regulations
• Internalizationof external cost
• Reconsideration ofproduct design.
4. Result
• Economic sustainabledevelopment
• Sustainabilityof enterprises