Environmental Accounting in India: A Conceptual Study

Abstract

Environmental accounting is defined under different perspectives. It includes identification, measurement and allocation of environmental costs. It integrates environmental costs into business decisions and communicates the same to the stakeholders of the company. The impact of environmental aspects is identified and measured in order to develop reporting systems to decision makers. An important function of environmental accounting is to bring environmental costs to the attention of corporate stakeholders who may be able and motivated to identify ways of reducing or avoiding those costs while at the same time improving environmental quality. 

The objectives of this study are to examine the various parameters which are adopted by corporate houses for environment accounting and reporting practices. This study will provide a broad view on the developments taken place in corporate environmental accounting practices in India and the major limitations of such practice.