ACCOUNTING

Accounting

Accounting

Accounting

Accounting is defined as a collection of data in a systematic, structured, and valuable quantitative information expressed in currency units on the transactions. It is the art of recording the data then classify it and summarize in an important manner in the monetary terms and last interpret the results. Bookkeeping can be defined the recording of the transactions on a daily basis in an unsystematic way. Accounting is divided into different types: financial accounting, management accounting, tax accounting, environmental management accounting etc. Financial accounting can be defined as the collecting data, sorting it, and recording, adding together and reporting in monetary terms. It uses certain principles to record, classify, and summarize the data collected in monetary terms. The main function of financial accounting is to maintain the economic life history of a company: record the past figures that can use to make future decisions. The cost accounting is based on the data which is attained from the financial accounting procedures.

The book keeping and cost accounting is used for tracing the expenses, costs, savings, investments, and different indicators. Environmental financial accounting is a part of the accounting system that provides information about the financial impact of environmental issues through the Annual Accounts. It includes information of the company's environmental performance that is related to costs and environmental investments. The environment is a resource for companies, and they should manage it efficiently. If the companies are well managing the environment then it will give benefits to the company and society. Companies have to start the path towards sustainable growth through environmental performance indicators. These indicators help companies to improve their actions and communications with various stakeholders.

Environment Management Accounting

It includes the indirect costs of indirect activity. Green companies use environmental management accounting because they are more interested in their sustainability, ecology effectiveness and ecology efficiency. The basic function in environment management accounting is to collect, analyze, evaluate and make repots by taking into consideration of financial and environmental data. This accounting type has a key aspect of green business and responsible economic development. Environmental accounting has seen an increase in its use by companies, governments, and nongovernmental organizations, which have become more aware of the need to develop sustainable development policies and practices. It is likely that the expansion of this use of environmental accounting, as well as in the sophistication of its techniques, will continue as the needs of the marketplace and demands of consumers expect green considerations to be taken seriously. (Zia, 2009)

From a broader perspective, the business environment can be defined as set of physical, natural, aesthetic, cultural, social, and economic factors that interact with the company. The business has to take into consideration the ecology and surrounding environment before setting corporate goals. The business uses the environmental variables in different quantities. These environmental variables are natural factors of production i.e. raw materials, fuel, maintenance materials, and etc. Use variables for the prevention of pollution; utilize variables for the decontamination and restoration of the living ...