Green Accounting Essay Example | Topics and Well Written Essays - 2500 words

Green Accounting - Essay Example It is based on the existing financial accounting standards. In United Kingdom it is a combination of a company law and company accounting standards framed by the regulatory bodies which is utilised by the accounting professionals of UK (Sigma Projects, 2003). Different countries follow different kinds of GAAP (Generally Accepted Accounting Principles) accounting principles based on their regulatory and legal frameworks. Sustainability and sustainable accounting have different meanings and applications. The concept was first coined by Brundtland Commission and published in the report Our Common Future in the year 1987 (Christofi and Sisaye, 2006). It involves the effective and optimum utilisation of resources and reducing carbon emissions, wastage, environmental impacts. Sustainability accounting on the other hand helps in the financial reporting and communication about the sustainability initiatives and actions to the shareholder’s and stakeholders of the company. ... The global climate change has been the result of the industrialisation process that has caused carbon emissions, global warming and weather extremities such as drought and floods (Khan, 2011). It has helped companies to identify their past and potential future environmental impacts and benefits in addition to the historical and financial outcomes from their business activities. It also provides forward-looking information to help the companies implement and formulate strategic solutions to strengthen the business performance and to respond to the sustainability challenges that the environment faces. Sustainability accounting also helps in the risk management through identification and analysis of sustainability related risks and opportunities. Interdisciplinary relationships between ASD practices and organisational success The main purpose of sustainability accounting reporting is measuring, disclosing and being accountable to the stakeholders of the company to evaluate the organisat ional performance. Sustainability accounting is a broad term used for describing financial reporting on the environmental, economic, social impacts (World Commission on Environment and Development, 2006). A sustainability accounting report should be able to provide a relevant and balanced representation of the sustainability performance of the company (World Commission on Environment and Development, 2006). The various purposes of sustainability report are as follows 1) Demonstrating how the organisation is influenced and influences by expectations about the sustainable development. 2) Benchmarking and analyzing the sustainability performance of the company with respect to the norms and regulations of the regulatory