Journal of Management Research
Year : 2017, Volume : 17, Issue : 3
First page : ( 163) Last page : ( 174)
Print ISSN : 0972-5814. Online ISSN : 0974-455X.

Environmental Accounting An Analysis of Indian Corporate Sector

Moid Sana

Amity Business School Amity University Lucknow Campus Lucknow, (UP)

Online published on 9 January, 2018.

Abstract

Business creates assets to self by using natural resources and by creating social environmental liabilities causing degradation of environment. Traditional double entry financial accounting is concerned with quantification of business transactions in terms of money. Traditional money measurement concept accounting is of limited use when it comes to measuring degradation of natural wealth. The present study aims at developing an understanding of the environmental accounting practices followed by Indian Corporates and to determine factors that motivate the companies to adopt these practices. The study found that very few companies in India are disclosing the environmental issues willingly in their Annual Reports. Attributes like high polluting industries, size of the company, high debt to equity ratios and environment performance have positive impact on the environment disclosure. The reason behind the poor disclosure in environmental issues in India is found to be a lack of environmental legislations compelling the companies in disclosure.

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Keywords

Environment Accounting, Environmental Legislations, Environmental Degradation, Financial Accounting.

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