On Valuing Nature
Answer to question 01:
The main message of the article by Hines on “Valuing nature” is as below: In the current world everything on business especially in Accounting is “bottom line” which is net profit expressed through quantification. But in real world, there are so many things which cannot be expressed through accounting theory or concept but they are equally important as of “bottom line”. Answer to question 02:
Thinking accounting differently:
In this article, the Author has profoundly brought into reader’s attention regarding the importance of accounting but not only in terms of quantity but also qualitatively. In the various famous Text books Accounting is taught through various techniques, theory, principles. But they try to present Accounting related information in the course of number for example Net present value of an asset. But in reality they are certain commodities/assets which are actually invaluable in other sense unquantifiable. But Accounting seems helpless when we try to value the invaluable assets. For example, maintaining relationship with the best friends, value of nature, etc. In accounting terms they may incur cost and reduces the revenue. So, being an Accountant, the simple solution would be cut those cost heads and maximize the revenue. But unfortunately, the world does not follow that rule. We are not always driven by “bottom line” and this is where accounting theory and principals need overhauling and come up with more acceptable formula real world oriented solution. The Accounting theories are yet to answer those mysterious behaviors. Also, how to put a price of true friends, the business operations causing Carbon emission and Ozone layer depletion, what cost they are incurring to this mother planet called Earth-The Accounting has got serious limitation in answering those and putting the actual pricing tag on them. Now, the time has come to get...
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