20161002

Environmental Accounting & Auditing in India: Some Notes for 21st Century


Dr Vijay H. Pithadia


Abstract:

The concept of environment accounting is new for Indiabut the recent policies of Indian government of liberalization have catalyzed the need or practice of environmental accounting and auditing in India. At the time into entering into 21st century there should require to established new accounting standards concerning to environmental importance. Secondly it should be included into specialized accounting education syllabus. Thirdly to create awareness of importance related to environmental accounting among accounting professionals in India.

Key Words:

Environmental accounting, Rig-Veda, environmental pollution, new accounting standards, accounting education syllabus, accounting professionals

Availability of Data:

Quoted data and information are available from public sources, which are mentioned in references.


Prologue:

With the opening up of market and globalization of the whole world become small place. At the time of entering into 21st century the issues of environmental accounting and auditing are new but the recent polices of Indian government have catalyzed its importance as well as conceptual frame work of environmental accounting has been describe in "Rig-Veda", the pioneer religion theorem of Hindu Philosophy as according " sky is like a father, earth is like a mother, a space as their children " Thus Rig-Veda reflects that environment is to be valued like parents and love like children.

The concept of environment accounting and auditing may be new for western accounting thinkers. There may be conflicts between understanding and implementation. Few notes started its relevance for country. Such as establishment of new accounting standards concerning to environmental accounting and auditing in India. Secondly it should require to include into specialized accounting education syllabus and thirdly to create awareness of importance of environmental accounting to the accounting practitioners for serving its exact purpose.

Some Notes for 21st Century:

At the time of entering into 21stcentury there should require few considerations concern with the environmental accounting and auditing, those are:

[1] Environmental pollution:
Economic data such as GNP, NNP, Price and employment are widely used for judge the performance of the country. However above all macro an economic estimate neglects the concept of environmental pollution, it affects up to Ozone layer.

[2] New Accounting Standards:

Presently in India there are 15 accounting standards published but there are lacks of accounting standards concerning to the environmental accounting and auditing. The ICAI gave the guidelines for the development of accounting standards in India.

[3] Accounting Education Syllabus:

As the input point of view it should required changing the accounting education syllabus at graduate level and inclusion with environmental accounting and auditing as per new accounting standard related to the environmental accounting and auditing because of its wide importance and applicability.

[4] Significance: [A] Environmental Accounting and accounting professionals: Importance of environmental accounting and auditing creates awareness among the accounting professionals. Made provision in the accounting statements as according to new accounting standards related to environmental accounting. The importance of environmental accounting is not limited up to few points but also include each and every human beiges, earth and eco system.

[b] Government point of view: The government should recover the cost of eco restorations from the polluters of the environment and take other remedial measures as permitted by the Supreme Court of India in its decision of March 1996. Secondly Government should create the awareness for environment and its importance through approximate ways and techniques.

Conclusion:

The issue of environmental accounting is just like Old wine in new bottle for India. Recent study describe that some notes for 21st century. At present in India all such macroeconomic estimates neglect factors such as depletion of natural resources, environmental pollution congestion of perks as well as lack of accounting standards concerning to the environmental accounting and auditing in India. As a concluding remark the system of environmental accounting is very useful for measuring economic development and social well being.

References:

[1] ABBOTT W F and MONSEN R J On the measurement of corporate social responsibility: self reported disclosure as a method of measuring corporate social involvement Academy of management journal September 1979
[2] ALHASHIM D Social accounting in Egypt International journal of accounting spring 1977
[3] AMERICAN ACCOUNTING ASSOCIATION Report of the committee on accounting for social performance Accounting review 1971
[4] FREEDMAN M and STAGLIANO A European unification, accounting harmonization, and social disclosures International journal of accounting 1992
[5] GRAY R and others struggling with the praxis of social accounting: stakeholders, accountability, audits and procedures accounting, auditing and accountability journal 1997
[6] GUTHRIE J and PARKER L Corporate social reporting: a rebuttal of legitimacy theory Accounting and business research autumn 1989

[7] P. C. Mishra, N. Behera, B. K. Senapati and B.C. Guru Advances in Ecology and Environmental Sciences, Vedams e-Books (P) Ltd., New Delhi, 1995

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