Published Online:July 2024
Product Name:The IUP Journal of Accounting Research & Audit Practices
Product Type:Article
Product Code:
Author Name:Laxman Rao G
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:25
Businesses are integrating the concept of natural components into their operations. Caring for the environment is one of the most important aspects of a company’s social responsibility. The economic losses that environmental resources, both renewable and nonrenewable, are experiencing are measured through a method of accounting called “green accounting”. The achievement of financial performance through long-term growth and profitability is the primary focus of business sustainability. It is expected of businesses to consider and contribute to the wellbeing of the community and the environment. The public debate has long been dominated by environmental issues. It has been demonstrated that businesses’ global sustainability is affected by their use of green accounting. According to reports, the increased environmental responsibility of Chinese businesses has reduced debt capital costs. Capital restrictions are less severe for businesses with strong environmental sustainability records. India has unreported resource depletion and a disregard for sustainability. Adopting a green accounting method is recommended because it may enable citizens and decision makers to start a discussion on how to maintain growth. Rewards for good quality reporting should be implemented, comparable to those given for good environmental performance in other emerging nations. The importance of integrating natural resource management and assessment into the foundations of public policy and administration must be acknowledged. Both internal and external auditors can use environmental aspects (EA) as a road map to success.
Every citizen has an obligation to recognize the ecological harm they have caused and to take action to preserve the natural resources. Environmental and natural resource accounting is often referred to as “green accounting.” Green accounting, also known as environmental accounting, has been evolving since the 1970s, and in the 1980s, research on the subject started gaining momentum. With the passage of the Environmental Law in 1982, the fundamentals of environmental policy in Indonesia were established. Green accounting and environmental reporting are interchangeable terms (Cho and Patten, 2013).