The Benefits Of Environmental Accounting

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The first policy that that researchers have gathered regarding environmental accounting is the policy on asset accounts. According to the book “Fundamentals of Accounting” by Beticon, Hinayon, and Ireneo; an asset is a resource controlled by an enterprise as a result of past events and from which future economic benefits are expected to flow to the enterprise. Assets are things that the company own and will receive in the future. Assets may be in various forms being tangible and intangible. Tangible assets are the physical assets that can be sensed. Examples of tangible assets are furniture and fixtures, cash, building, land, equipment, supplies, merchandise inventory, delivery truck, and the like. Intangible assets are nonphysical

It is beneficial to the environment because it can render services that may reduce environmental degradation and may prolong its life through eco-friendly means. Beneficial to society means that environmental assets are very useful for the people. It may be used in health services, anti-calamity equipment, etc. Environmental asset accounts are being classified as physical accounts and monetary accounts. Physical accounts are measured in terms of physical units. They can indicate whether an economy is efficient or inefficient through its usage. Physical accounts can be depleted so economies need to use it wisely. For example, land can be efficiently used as farms or plantations. By doing so, the physical asset account, which is the land, is being utilized properly. In the case of monetary accounts, it is being related to prices and values. In traditional accounting, there is the term “depreciation” while in environmental accounting there is environmental degradation. Environmental assets that are being degraded may lose its contribution to sustainability. Companies and enterprises should “green” their assets because by doing so, they can help increase sustainability and help reduce the destruction of the

This talks about the effective and efficient usage of natural resource assets. This also determines the value of natural resources over time. It monitors those changes in these values as time passes by. Resource use management keeps track of the non-renewable resources because it cannot be replenished. Non-renewable resources are very important to the daily living of the society. Many sources of energy the people use every day come from non-renewable resources. Resource use management is a great help in order to maintain usage and to prevent sudden depletion of non-renewable resources. Green accounting monitors the ”depreciation” of these assets in order to keep track on