Environmental Accounting and Its Endevour in India

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ENVIRONMENTAL ACCOUNTING AND ITS ENDEAVOR IN INDIA
Rajesh Arora
Free lance Management Education Consultant
ABSTRACT
In recent years we all have witnessed environmental degradation at global level in shape of rising pollution levels, soil erosion, deforestation, etc. this is spoiling normal health of human beings, reducing the corporate productivity levels, reducing the availability of amenities, etc. The developing nations like India are facing the twin problems of first protecting its environment and simultaneously increasing its economic development. A tradeoff between the two becomes necessary. A complete analysis become necessary of benefits realized and costs accruing with respect to environmental exploitation taking place on account of economic development. This will help in predetermining the permissible limits for economic development. Hence a study on environmental accounting becomes necessary to determine benefits and cost of actions undertaken to protect the environment.  KEY WORDS

Environmental accounting, Green accounting, Environmental Management Accounting, Environmental Financial Accounting, Environmental National Accounting, Segment Environmental Accounting, Eco Balance maintenance Environmental Accounting, Corporate Environmental Accounting, Rig Veda. INTRODUCTION

In a business organization it is considered to be prudent to make best use of all available resources, whether they are men, money, materials, machines or methods. The business entity is a part of social community and it is judged by it actions as a responsible member of the society. Its objectives in present day are not just profit making but value maximization in terms of shareholders wealth maximization without disturbing the environmental and social fabrics, on which it has to stand committed in order to maintain it standing in the society.   As far as Indian corporate sector is concerned it is quite depressing to say that that it has not been able to perform as a responsible citizen. To counter these laws had been laid down and further amended from time to time as and when required. Responsibility towards environment has become one of the foremost criteria with respect to corporate social responsibility judgment parameters. In recent years we all have witnessed environmental degradation at global level in shape of rising pollution levels, soil erosion, deforestation, etc. this is spoiling normal health of human beings, reducing the corporate productivity levels, reducing the availability of amenities, etc. The developing nations like India are facing the twin problems of first protecting its environment and simultaneously increasing its economic development. A tradeoff between the two becomes necessary. A complete analysis become necessary of benefits realized and costs accruing with respect to environmental exploitation taking place on account of economic development. This will help in predetermining the permissible limits for economic development. As per report published in Economics Times dated 18th November 2010 the Government of India is trying to make it mandatory for companies to report measures taken to prevent environmental damages. It is also stepping up drive to encourage clearer production methods. The ministry of corporate Affairs is revising guidelines on corporate social responsibility in order to add norms on environmental sustainability. The new norms relate to efforts to prevent wasteful use of natural resources and to ensure scientific treatment of industrial waste. The present norms leave it on the companies to initiate steps though it urges them to strongly implement them. It does not provide framework to be followed leading to companies not following them as intended to. The rule is said to come in force from coming fiscal year. A detailed accounting standard is being worked out by ICAI (Institute of Chartered Accountants of India) with respect to environmental accounting. Though norms will be voluntary yet their...
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