Green Accounting Definition
Restored from the Empower Network archive (2011–2017), lightly edited to meet our current advertising standards. Views are the original author’s.
Green Accounting Definition: Green accounting as environmental accounting
Green accounting is the kind of environmental accounting describes an effort to incorporate environmental benefits and costs into economic decision-making or a business’s financial results.
Environmental accounting firm related to the environmental impact of a business, a national environmental accounting seeks to achieve the same at the state level.
It has been argued that the gross domestic products ignore the environment and therefore requires a decision maker revised model that incorporates green accounting “green national accounting. This is a popular term for the accounting of natural resources and environment
Green Accounting Definition: The purpose
The Purpose of green accounting: There is no single goal. Among the goals may be, we can list: identify, collect, calculate and analyze the relevant material and energy costs; internal reporting and using information about environmental costs; provide other costs involved, the information in the decision making process, with a view to adopting efficient decisions and contribute to environmental protection
Green Accounting Definition: Advantages and disadvantages
Advantages: adopt a decision on the financial performance of organizations and green accounting, provide useful information to achieve cost minimization target (especially environmental) and a negative impact on the environment, present data on the cost required to estimate the financial impact of such initiatives as: preventing pollution, designing and green accounting environment improvement; projections, cost, estimated life cycle in the environment; circulation of the environmental administration of the product candidates; supply process from an environmental perspective; product or a manufacturer’s liability;-centered environment management system; assessing, testing and reporting the performance of environmental activities; The performance reporting; other information sources such as routine managerial activities: product and process design, cost distribution and control, capital budgeting, bidding process, pricing policies, performance evaluation
Disadvantages: the implementation of green accounting does not represent a guarantee for financial gain or a related environmental performance.
Green Accounting Definition: The Cntroversy
Controversy : Further criticism refers to the possible distortion of calculating the environmental protection as an increase in national income, despite the fact that defensive expenditures “as this tends to maintain rather than increase, the welfare of society.
In response, the United Nations which was published in 1993 and revised in 2003 in a handbook Integrated Environmental Systems and Economic Accounting (SEEA 2003)
referred to as SEEA 2003, is a satellite system of the National Balance System.
It brings together economic and environmental information in a common framework for measuring the contribution to the economy of the environmental and economic impacts on the environment.
It provides policy makers with indicators and descriptive statistics to monitor these interactions as well as a database for strategic planning and policy analysis to identify more sustainable paths of development.
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Idham Smith
Green Accounting Definition