Developing countries like India are facing problems like protecting the environment & promoting economic development. The environment & economy are the two sides of the coin, if we cannot sustain the environment then we cannot sustain ourselves. Environmental degradation leads to a decline in human health which in turn reduces economic productivity & leads to loss of amenities. The aim of environmental accounting is to create sustainable development through the pursuit of more efficient environmental conservation practices. In this article, you will be introduced to this, its objectives, career & salary outlook & need for environmental accounting. The main objective of this field is to compensate for the expenses of the companies.
Environmental accounting is a subset of accounting proper that identifies the resource use, measures & communicates the cost of the companies or national economic impact on the environment. It is a system consisting of environmentally differentiated conventional accounting and ecological accounting. Ecological accounting includes costs to clean up or remediate contaminated sites, environmental fines, penalties and taxes, purchase of pollution prevention technologies, and waste management costs. Environmental accounts provide the data which highlights the contribution of natural resources to economic well being & the cost imposed by pollution or resource degradation. This field plays an important role in providing data regarding the environmental impact of various internal and external users.
This field is further divided into 3 types of accounting:
a) Global environmental accounting: This area deals with energetic, ecology, and economics at a worldwide level.
b) National environmental accounting: This deals with economics at the country level. Internationally, this field has been formalized into the System of Integrated Environmental and Economic Accounting, known as SEEA.
c) Cooperative environmental accounting: This area focuses on the cost structure & environmental performance of a company. Corporate this field can be further sub-divided into environmental management accounting and environmental financial accounting.
The students who want to perceive environmental accounting must attain a bachelor’s degree in accounting. One must take additional courses in economics, environmental science, and other related topics, however, is often helpful for those who intend to pursue This field as a career. The three major elements of accounting are Assets, Liabilities, and Capital.
This field is one of the most stable & promising career options. There is a 10% employment growth in this sector. Environmental accounting positions are particularly common with companies that often deal with environmental protection agencies. This field provides secure job opportunities. The employment opportunities include Power Companies, Oil Companies, Paper Manufacturers, Chemical Manufacturers, Automobile Companies, Government Agencies, Non-Profit Organizations, Large Corporations & Colleges and Universities.
Top accountants & auditors earn yearly $ 122,220.
Lower accountants or newly joined ones earn yearly $ 43,020.
Environmental accountants must be experts at general financial accounting & sustainability. The role of the accountants is to calculate financial & environmental costs. The accountants account for the sale or trade of pollution licenses. Employers may also help in the implementation of the company’s environmental management system. The accountants have the major role to play in conserving the environment. They have to prepare reports, check pollution caused the companies they work for, analyze the data & suggest for the major changes the companies should opt for. Environmental accounts provide the data which highlights the contribution of natural resources to economic well being & the cost imposed by pollution or resource degradation.
This field is an important tool for understanding the role played by the Natural Environment in the economy. The benefits of this field are:
There are several advantages environmental accounting brings to business; notably, the complete costs, including environmental remediation and long term environmental consequences and externalities can be quantified and addressed.
Objectives of Environmental Accounting to compensate for the negative impacts of economic growth, that is, the defensive expenditures. The objectives of this field and reporting are as follows:
Environmental accounting is the best career option to choose as it provides secure job opportunities in your native country as well as abroad. Hope you got the best guidelines regarding this field.
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