The Internal And Internal Functions And Roles Of Environmental Accounting

The term environmental accounting has many meanings and practices. Environmental accounting is known as the broad field of accounting in terms of financial accounting, national income accounting, or internal business managerial accounting. In easier understanding, environmental accounting is a tool to supplement environment management. The aim of environmental accounting is at maintaining a favorable relationship with the community, pursuing effective and efficient environmental conservation activities also achieving sustainable development. In this, environmental conservation can be defined as removal of such impact, reduction, prevention or avoidance of environmental impact apart from restoration following the occurrence of a disaster and other activities. Specifically, one of the problem in the environment that might occur from business operations or other human activities and any potential obstacles which may slow down the preservation of the favourable environment is due to the environmental impacts. Reports, controlling overhead and capital budgeting, disclosing environmental information of interest to the public and to the financial community and generating environmental information in helping the management to make decisions on pricing and

1) Internal Functions

As one step of a company’s environmental information system, internal function makes it possible to manage environmental conservation and analyse the cost of environmental conservation activities versus the benefit obtained, comes with promoting effective and efficient environmental conservation activities through suitable decision-making.

2) External Functions

External functions allow a company to influence the decision-making of stakeholders, such as consumers, investors and local residents by disclosing the quantitatively measured results of the environmental