ANALYSIS OF GREEN ACCOUNTING

Green accounting is a form of accounting that sets out to comprise the factor called environmental costs into the financial outcome of operations. It has been debated that the gross domestic product (GDP) disregard the environment and consequently the policymakers require a revised model that assimilates green accounting. The predominant objective of green accounting is to aid the business in comprehending and manage the prospective tradeoff between environmental goals and traditional economic aims. Green accounting requires several synthesizing cognizance in sociology, behavioral science, biology, engineering. It also deals with management and accounting problems confined to social and environmental ramifications, rules, constraints, economically feasible production of energies, safety etc. The elemental theory confined to green accounting is internalizing the environmental costs within the organizations; this is subject to the attempt to find solutions to the decreasing negative consequences of process and ventures on the environment. The crux of green accounting relies on handling the problems in line with the social environment and its possible impact in achieving environmental and sustainable development in any nation and thus influencing an organization's behavior in tackling issues related to environment and social responsibilities.