Green Accounting in China

Green AccountingCurrently, China's resource and environmental problems are quite serious: forest decline, soil erosion, environmental pollution and so on. If we do not pay attention to the protection of resources and environmental management in the process of establishing a modern enterprise system, the resource and environmental problems will further deteriorate and fundamentally restrict the development of the economy. Developed countries, after centuries of development, have realized this problem and taken measures. China should learn from their experience and must "protect and manage while developing". On the one hand, the government should utilize its own advantages to protect the resources and governance of the environment, on the other hand, we should step up the environmental and resource legislation, constraints on enterprises, promote enterprises to protect the environment, and the establishment of environmental accounting is one of the important measures.

In the process of establishing China's modern enterprise system, environmental protection accounting is likely to be used more effectively. Because the modern enterprise established on the basis of socialist market economy, although its direct production purpose is to make profit, but from the perspective of the macro purpose of the whole social production is to maximize the satisfaction of people's growing material and cultural needs, although there is also the difference and contradiction between the interests of the state, the enterprise and the workers, but from the perspective of the fundamental interests of the three are the same. Therefore, the environmental protection accounting more in the socialist market economy conditions to fully show its role.

In order to make environmental accounting to get faster and better development, so that the environment is better protected, we should start from the following two aspects:

1. Strengthen the enterprise environmental and resource awareness.

Wide-ranging discussion and education on environmental and resource issues to strengthen the awareness of enterprises in this regard, prompting them to establish and develop environmental accounting.

2. Adopt the implementation program of overall promotion and key breakthrough.

The seriousness of the situation requires us to comprehensively carry out environmental protection, however, in the actual economic life, the actual situation of each enterprise is different, we can not require each enterprise's environmental protection accounting is at the same level, but should choose some of the greater impact on the national economy as a whole, or the current community is more concerned about the enterprise, to strengthen their environmental protection accounting and play a leading role. The role of environmental protection accounting should be strengthened and take the lead.

Green Accounting - Differences with Traditional Accounting

Green AccountingGreen Accounting is based on traditional accounting, for the traditional accounting in the accounting process of the environmental problems of the impotence and the emergence of the differences between the traditional accounting is mainly manifested in the following aspects:

1. In the modern economic society, the traditional accounting on the supervision of the business activities of the enterprise and reflection is incomplete, while green accounting makes up for its shortcomings. From the perspective of human economic activities to reflect and supervise the enterprise's capital and its movement, in accordance with the accrual system, historical cost and other principles, the use of double-entry book-keeping methods for the enterprise to recognize, measure, record and report on the economic matters that occur, but the enterprise's economic activities on the environment caused by the impact of the accounting is not reflected in the accounting from this point of view, the traditional accounting is incomplete in terms of the content of the reflection. Green accounting, on the other hand, starts from the ecological environment and the activities of the whole mankind, focuses on the efficient use of natural and social environmental resources and the compensation for the consumption of environmental resources, and comprehensively reflects and supervises the economic activities of the enterprises, thus effectively solving the problems that cannot be solved by the traditional accounting.

2. Traditional accounting has defects in the measurement of assets, liabilities, revenues and expenses, while green accounting has perfected these problems. In traditional accounting, only the existence of property ownership of things have a price, can be measured in money, can be reflected in the enterprise's accounting statement. But such as air, ocean, ozone layer and other vital to human but no ownership of things can not become the content of traditional accounting, the enterprise on the use of these things and the damage is not recorded in the enterprise's operating costs, which not only makes the enterprise's cost of false reduction, false increase in profits, more serious is that this "acquiescence" can undoubtedly be regarded as a "tacit approval" of the environmental sacrifice to obtain profits. More seriously, this "tacit approval" can undoubtedly be regarded as a kind of encouragement to the behavior of sacrificing the environment to obtain benefits. Green accounting fully emphasizes the finiteness and scarcity of environmental resources, is the whole of mankind *** with the possession of the "property", must be assigned a value and price, and to compensate for its loss, so that the responsibility of the enterprise to the extension of the community, forcing the enterprise will be the economic, social and ecological benefits of the comprehensive consideration of the economy, and truly realize the economic sustainable development.