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Presentation Topic

Green Accounting

Presented by
8Th Batch
Major in Accounting & Information Systems
Dept. of Business Administration
Khwaja Younus Ali University
 Green Accounting

Green accounting or environmental Accounting:

It incorporates the environmental sources and assets
into corporate accounts. It measures environmental,
social and economic impact of business.
 History of Green Accounting

Green Accounting has a short beginning in the late 1980s

and it is directly linked with environment sustainability. Its
main focus is to place value on environmental resources that
do not have a market price and incorporate these resources
into the national accounts and into economic growth
measure.
Types of Green Accounting

 Green Management Accounting

 Green Financial Accounting
 Green National Accounting
 GREEN MANAGEMENT ACCOUNTING(GMA)

❑GMA incorporates both the environmental and

economic information by identifying resource
usage and cost of organizations economic impact
on the environment
 GREEN FINANCIAL ACCOUNTING(GFA)

❑GFA is concerned with accounting for

environmental transactions that have an
impact on the financial performance of
the company.
 GREEN NATIONAL ACCOUNTING

❑GNA involves national level accounting

with a focus on natural resources and green
costs.
 BENEFITS

Creation of different indicators of

sustainable economic well being.

Through Green Accounting, nations can

observe their economic growth at a
sustainable level.
Important to the sustainability of
environmental resources that do not
have a market price.

 Reduces the cost associated with

raw material utilities and waste.
Firms can also decide how much of
an environmental resource to use and
when to use it.
 Green Accounting Addressing
Climate Change

Green accounting can be the foundation to make

decisions related to climate. A connection is
needed between green data and economic data for
economic growth.
 Need of Green Accounting

• Practically for developing countries like

Bangladesh it is a twin problem about saving
environment and economic development.

• As the country economic condition is not very

strong, hence it should be improved first.
•A study of world bank says that Bangladesh
losses about $ 6.5 billion which is about 3.4% of
the Gross Domestic Product(GDP) due to
pollution & environmental degradation every
year.
• Companies like Dutch Bangla Bank Limited
are implementing Green accounting.
 Limitation of Green Accounting

• There is no standard accounting method .

• Comparison between two countries or firms is
not possible if method of accounting is
different.
• It mainly consider cost internal to the
company and excludes cost to society.
• Input for Green Accounting is not easily
available because costs and benefits relevant to
the environment are not easily measureable.

• The cost for its tools and application initially is

high.
 CONCLUSION

Regardless of the criticism , green accounting is

necessary to place value on environmental
resources.
Any Question
Thank you