Environment Accounting

Economic growth makes pressures on the Earth’s natural systems and resources intensified. Managers of business units seek to lower operational costs and environmental impacts caused by operational activates. Due to its financial view, traditional accounting system provides managers with no relevant information on environment costs. The aim of environmental accounting is to prepare information that helps managers assess control, decision – making, and reporting performances for respective organization or region. Environmental accounting is based on environmental and economic concepts, criteria and values. In order to achieve this end, cultural changes are felt necessary, but the tragic fact is that economy continues its growth while the environment, on which economy depends, shows no growth. Although economic indicators like investment, production and commerce exhibit a positive trend, basic economic indicators of environmental conditions get increasingly more negative. Today, environmental accounting is developing and progressing rapidly. An appropriate environment is needed by competitive success in long term and, to attain it, environmental accounting is considered a vital tool. All cases mentioned determine national environmental accounting development.