3. INTRODUCTION
The natural resources of any nation like water, climate,
minerals forests,tress,oil fields,port facilities,rain,animal
world etc.affect the bussiness activities of any
enterprise.
In our nation lot of natural resources, where land is
cheaper, raw materials are easily avilable.
During the last 5 years, an idea has put forward by
experts the cost of revenues, depreciation and values
of natural resources used must be accounted for in
book of corporate enterprises.
4. MEANING
In simple words,
“Environmental accounting is a method of
recording environmental element in the books of
accounts.”
Environmental accounting is method of keeping
records of environmental goods and services.
5. SCOPE OF ENVIRONMENTAL
ACCOUNTING
1.Concept of national income.
2.Cost Concept.
3.Depreciation of Natural Resources.
4.Valuation of Natural Resources.
5.Disclosing its Value in National Balance Sheet.
6.Determining Values.
7.Contribution to Industrial Development.
8.Contribution of Industries to Environment.
9.Social Wellbeing.
6. 1.CONCEPT OF NATIONAL INCOME.
The natural resources are such resources ownership
of which rests with the nation.such resources are
utilized by the industrial enterprises and such
accounting is useful for income arising out of it.
2.Cost Concept.
Some costs have to be incurred to make use of
such resources like cost of extracting minerals,cost of
quarries,cost of cutting trees to get industrial use etc.
such cost are classified as
(1)Revenue expenses
(2)Capital expenses.
7. 3.DEPRECIATION OF NATURAL RESOURCES.
The natural resources get depleted with its use like
coal,oil.such assets are wasting assets and in order to
compute the true income,depreciation has to be provide
for such use.
4.Valuation of Natural Resources.
The total quantity contained in any mine, well etc.has to
be estimated and natural resources are valued on that
basis.
8. 5.DISCLOSING ITS VALUE IN NATIONAL BALANCE
SHEET.
As natural resources are considered valuable assets of
the nation, they have to be disclosed in balance sheet of
nation as nation assets.
6.Determining Values.
The environmental accounting is a system in which
environmental goods and services are included.These
goods and services have to be valued in monetary terms,
as they are precious. of course, environmental goods and
services cannot be traded in the market.
9. 7.CONTRIBUTION TO INDUSTRIAL DEVELOPMENT.
Natural resources are the bases of industrial
development. The are valuable raw materials for the
industries. Like, oil, wood ,water are useful for the
industry.
8.Contribution of Industries to Environment.
Not only do the industries make use of natural
resources, but they have some favorable effects and
some adverse effect also on environment. Like
pollusion,noise etc.
10. 9.SOCIAL WELLBEING
Environment deeply affects the society. The change
in the environment and use of natural resources
affect the health of the society members.So,both of
them are closely connected with social welfare.
