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In the Past decades there has been a vast demand on economic and financial data about environment and natural resources. There is however a paradox that improving environmental performance is often advocated as remedying defects in a company's assessment of their own self-interest. Environmental Accounting plays an important role in providing the needed data on environment to different users at all levels for various reasons.There is a growing interest in India about subjects such as sustainable development, corporate social responsibility and corporate environmental performance. They are an after-effect of the international calls about the responsibility of corporations towards natural environment. Therefore, Greek corporations have started implementing practices for better environmental performance and reporting them to the public. The present research aimed to investigate India corporations' disclosures about their behaviour towards the protection of natural environment.In recent years, environmental pollution becomes so acute and the stakeholders' awareness to the issue becomes so serious that environmental accounting has become a strong
branch of accountsing. Still, attention towards the style and recognition of environmental accounting is not a generalized one. Legal authorities, standard setting bodies and other regulators cannot come to a consensus regarding the conceptual framework of environmental accounting and its disclosure. Thus, such disclosure is not mandatory rather voluntary that has no specific style or format. With the passage of time, more guidelines are coming in customized format that may lead us to reach a common format for recognizing environment related data and disclosure thereof through financial statements. Still, such disclosure is guided by the social responsibility and commitment on the part of the entities that work as strong agents for polluting the environment. In this paper, the theoretical foundation of environmental accounting and reporting is discussed with special reference to industry like ONGC , BPCL .
IT has been found that the scenario of Environmental accounting practices has not been changed. Their Environmental Policy shows that they are giving fully efforts for the better protection of environment but on the other hand the research findings doesn't shows the environmental cost , liability , and environmental expenditure .
Growing pressures on the environment and increasing environmental awareness have generated the need to account for the manifold interactions between all sectors of the economy and the environment. Conventional national accounts focus on the measurement of economic performance and growth as reflected in market activity. For a more comprehensive assessment of the sustainability of growth and development, the scope and coverage of economic accounting need to be broadened to include the use of non-marketed natural assets and losses in income-generation resulting from the depletion and degradation of natural capital. Conventional accounts do not apply the commonly used depreciation adjustment for human-made assets to natural assets. Since sustainable development includes economic and environmental dimensions, it is essential that national accounts reflect the use of natural assets in addition to produced capital consumption Environmental issues have adversely affected most of the business transactions and promoted companies to recognize ecological and social sustainability practices as part of their broader goals . Such initiatives need be identified to curb the environmental and sustainability gap and the ever increasing concern for global warming and environmental degradation calls for collective effort of corporations , government and other stakeholders in tackling the problem .The implementation of environmental disclosure practice can help companies and other stakeholders to reduce cost and decrease pollution respectively The implementation of environmental disclosure practice can help companies and other stakeholders to reduce cost and decrease pollution respectively . Environmental accounting , as a subject has gained importance across the global due to the increased concern for global warming and environmental degradation . The environmental threat can be mitigated by the collective effort of companies , government and other stakeholders of the society . Various companies in india voluntarily started reporting environment related information in the financial statements to demonstrate their support toward environmental issues . Acording to the United states Environmnetal Protection Agency , an important function of
environmental accounting is to bring environmental costs to the attention of corporate stakeholders who may be able and motivated to identify ways of reducing or avoiding those costs, while at the same time , improving the environmental quality . The implementation of environmental accounting can help achieve the objective of corporations and other stakeholders in reducing the costs and decreasing the pollution respectively . However , environment related disclosure can only be executed by the managers who are conversant with different perspectives of environmental accounting . So we can say that The term environmental accounting has many meanings and uses. Environmental accounting can support national income accounting,financial accounting, or internal business managerial accounting. This primer focuses on the application of environmental accounting as a managerial accounting tool for internal business decisions. Moreover, the term environmental cost has at least two major dimensions: (1) it
can refer solely to costs that directly impact a company's bottom line (here termed "private costs"), or (2) it also can encompass the costs to individuals, society, and the environment for which a company is not accountable (here termed "societal costs"). The discussion in this primer concentrates on private costs because that is where companies starting to implement environmental accounting typically begin.
However, much of the material is applicable to societal costs as well
2. Review Of Literature :
1."According to Wiseman" (1982)1 , in 1973 the study group of financial statements in USA advised that a basic objective of the corporate reporting should be the disclosure of the activities
2. " Guthrie & Parker (1990)2",described disclosures as declarative, representing non-quantitative disclosures, and quantitative disclosures as being monetary and non-monetary.
3. "Gibson and O'Donovan (1994)3 categorized information in reports as 'financial information quantified non-financial information and, descriptive, or narrative information'.
4. Harte and Owen (1991)4 analyzed the annual reports of 30 British companies to o investigate the environmental reporting in their annual reports and suggested for external standards on environmental reporting
5."Deegan and Gordon (1996)5" examined the environmental disclosure practices of Australian companies revealing low voluntary environmental disclosure in Australia.
6. "Jones et al. (1999)6" analyzed the websites of 275 global companies. They also conducted a survey of 100 environmental managers, seeking their views on the use of their website for environmental communication. Their findings suggested that companies were not fully utilising the web for environmental communication
7.."Romlah et al. (2002)7." studied the practices in Malaysian companies and showed that 74 out of 362 companies (20.44percent) is environmentally sensitive industries and provide environmental information in their annual reports.
8 "Imam (2000)8"analyzed annual reports of 34 companies listed with the stock exchanges of Bangladesh for the year of 1996-97 and found that only 22.5 percent of the sample companies provided environmental information in their annual report
9. "Gray et al. (2001)9" examined the relation between corporate characteristics and environmental disclosures by taking a sample of 100 UK companies drawn from the Center for Social and Environmental Accounting Research (CSEAR). The authors observed that the volume of disclosure is related to the turnover, capital employed, number of employees and profit, as larger and more profitable firms have disclosed more environmental information
10."Bhate (2002)10" investigated the extent to which consumers of India are aware of environmental issues and it was found that Indians are most involved with environmental issues.
11"Ahmed and Sulaiman (2004)11" examined the extent and type of voluntary environmental disclosures in annual reports for the year 2000 by Malaysian companies belonging to construction and industrial products industries and concluded that the extent of environmental disclosure was very low and was scattered throughout the report without any concentration.
"Rahman and Muttakin (2005)12." surveyed 125 manufacturing companies listed on the Chittagong Stock Exchange (CSE) as on May 7, 2005. They analyzed the annual reports of these 125 companies for the year 2003/2004. The researchers found that only 5 companies (4 percent of 125 companies) disclosed environmental information in their annual reports. The information was descriptive in nature; no quantification thereof was made. They also report that the disclosure of environmental information was done in different places of the annual report and there was no standard environmental reporting framework
"Hossain (2002)13."conducted a survey of annual reports of 150 non-financial company Hossain (2002)"conducted a survey of annual reports of 150 non-financial companies (listed on the Dhaka Stock Exchange) for the year of 1998-99. The study reveals that only 5 percent of the companies under study disclosed environmental information in the Directors' Report or in the Chairman's Report of their annual reports and not a single company disseminated any quantitative information as to the environmental items. An interesting finding of this study is that subsidiaries of multinational companies did not disclose environmental information. (listed on the Dhaka Stock Exchange) for the year of 1998-99. The study reveals that only 5 percent of the companies under study disclosed environmental information in the Directors' Report or in the Chairman's Report of their annual reports and not a single company disseminated any quantitative information as to the environmental items. An interesting finding of this study is that subsidiaries of multinational companies did not disclose environmental information.
Cunningham and Gadenne(2003)14 investigated whether an enhancement in environmental regulations acts as a momentum for changes in annual report disclosure behavior and concluded that environmental regulation acts as an impetus for companies to include information on certain environmental issues in the annual report.
"Ahmed and Sulaiman (2004)15."examined the extent and type of voluntary environmental disclosures in annual reports for the year 2000 by Malaysian companies belonging to construction and industrial products industries and concluded that the extent of environmental disclosure was very low and was scattered throughout the report without any concentration.
"Rahman and Muttakin (2005)16..selected 196 companies in Bangladesh for their study out of which 125 are manufacturing companies and the rest 71 are service companies that gives same result.
Objectives of the study :
To find out the Environmental Policy of sample units .
To compare the performance of environmental performance indicators of sample unit .
To analysis the extent of the disclosure of environmental information
Of sample units .
To give suggestion for the improvement of their environmental policy .