Assistant Professor, Guru Nanak Khalsa College for Women, Ludhiana, Punjab, India
Online published on 2 July, 2016.
The issue of environmental responsibility and the sustainable industrial development has given to the birth of new branch of accounting i.e. environmental accounting and branch which meant to ensure that all stake holders, financial institutions and public have access to standard, comparable and constituent environment information akin to corporate financial reporting. 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 information into business decisions. Present study is based on identification of annual reports of eighty-five Indian companies and shows that Indian Companies are disclosing environmental accounting on a voluntary basis with in a positive manner only. Finally, the study also highlights the some suggestions for the encouragement of environmental accounting in India.
