The Necessity of Developing Environmental Accounting

Green accounting is based on the deterioration of environmental resources and the criticism of traditional accounting. In traditional accounting, only property ownership has price, which can be reflected in accounting statements. The air, ocean, ozone layer and other things that are vital to human beings but have no ownership can not be included in the accounting. The use and damage of these things by enterprises are not included in the operating costs, which not only makes the profits inflated, but more seriously encourages the behavior of sacrificing the environment to obtain current interests.

After entering the 2 1 century, environmental problems have attracted more and more attention from all walks of life. In order to protect nature and environment and realize the sustainable development of society and economy, environmental protection expenditure and environmental compensation responsibility are increasing day by day. Accounting has the function of reflecting and controlling social and economic activities, and should reflect and control environmental expenditures and benefits.

Green accounting fully emphasizes the finiteness and scarcity of environmental resources, endows them with value and price to compensate their losses, thus extending the responsibility of enterprises to society, forcing enterprises to comprehensively consider economic benefits, social benefits and ecological benefits, and truly realize the sustainable development of the economy.