Green Accounting and Its Practice in India

Abstract

India as still in the phase of developing is focusing on various factors out of which one factor is Environmental Awareness. Green Accounting is a measure of sustainable income level that can be secured without decreasing the stock of natural assets. This requires adjustment of the System of National Accounts (SNA) in terms of stock of natural assets. But it has some main defects. To overcome these drawbacks of SNA, the Statistical Division of UN has developed the System of Environmental Economic Accounting (SEEA). It’s Superiority over Conventional Accounting System. Green accounting considers pollution preventive expenditure and also environment impact studies. It expands and complements the conventional system of national accounts with regard to costing. Environmental accounting is the measure that can be used by companies to discover more of these opportunities and, bring environmental concerns earlier into planning, decision making, and operations, thereby, making a full disclosure of such issues (Bailey and Soyka, 1996). Environmental disclosure in India is at emerging stage, even though its importance has gained significance world-wide. Incorporation of green accounting at National level would lead to the development of the Indian Economy.