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The IUP Journal of Accounting Research and Audit Practices:
Environmental Accounting and Reporting: A Study of Maharatna Companies
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Due to the growing public concern regarding industrial activities, today the performance of an organization is judged not only on the basis of its financial results, but also with regard to its contribution to protecting and improving the environment. In this scenario, the need for accounting and reporting on the environmental issues and their disclosure in the annual reports has become an important part of corporate accounting and reporting system. Many companies undertake various activities to protect the environment in which they are functioning, but the question remains as to whether they account for their activities in monetary terms and report it in their financial reports. Hence, the present study is undertaken with the objective of analyzing the accounting and the reporting practices of Maharatna companies relating to environmental aspects. The study is based on secondary data collected from the companiesí reports. The data is analyzed with the help of disclosure index.

 
 
 

Traditional accounting focuses only on record keeping and reporting of information to the investors, but modern accounting is not only concerned with record keeping and reporting of information to the investors but also aims at fulfilling the information need of a wide range of stakeholders. It is now considered as a service activity.

The performance of an organization is now being judged not only on the basis of its financial results but also with regard to its contribution to protecting and improving the environment due to growing public concern about industrial activities. The issue of environmental responsibility and sustainable industrial development has given birth to a new branch of accounting, i.e., environmental accounting and reporting. Environmental accounting is relatively a recent development in the domain of accounting. It is the process of identification, measurement and communication of information in the environmental responsibility performance of an entity to permit economic decision.

 
 
 

Environmental Accounting , Reporting, Regarding Industrial activities, A Study of Maharatna Companies.