International Journal of Engineering, Management & Sciences (IJEMS) ISSN-2348 –3733, Volume-1, Issue-3, March 2014 8 www.alliedjournals.com Abstract-Last two decades have witnessed greater awareness and concern for environment in India. The recent ruling of the Supreme Court that environmental education should be introduced as a mandatory subject in all courses is a testimony to the fact. "Environment" is a broad team. As a general rule, with general acceptance due to increasing awareness and concern, environmental resources have begun to be treated as capital. Therefore, environmental accounting may be activities of a corporate entity. At national level, this may be aggregation of all such activities within defined territory integrating the results with the System of National Accounts (SNA) so as to provide a variable information base for planning, formulating, policies for the integrated sustainable development and growth of the national wealth and wellbeing. To meet regulatory requirements, to make corporate image, to build better relation with stakeholders, to reduce the environmental cost, to generate revenue etc. are the various reasons which need attention of the management to fulfil the environmental responsibility. Environmental Accounting remains as compliance of applicable rules and regulation unless it is not planned and approved from top to bottom. Some environmental issues such as - Acts, Rules and Regulations regarding to environment applicable to the Company, Policies and Programmer adopted by company, short term and long term budget for capital and revenue expenditure for environmental protection, environmental emission target set for the enterprise and performance in this relation, actual expenditure in specific period for environmental protection etc, must be considered in annual reports. For the sustainable development of a country, a well-defined environmental policy as well as proper follow- up and proper accounting procedure in this regard is required, which will be in the best interest of each and every citizen of the country as well as in the global interest. I. Environment Accounting - A Need of Hour The last two decades here witnessed greater awareness and concern for environment in India. The recent ruling of the Supreme Court that environmental education should be introduced as a mandatory subject in all courses is a testimony to the fact. "Environment" is a broad term. Environment has defined as the “Sum total of all conditions and influences that effect the development and life of organisms.” The Environmental (protection) Act 1986 defines environment as “Environment includes air, water and land and interrelationship which exists among and between water and air and land and human beings, other bring creatures, plants, micro-organism and Property.” Manuscript received March 15, 2014. Dr. Vijaylaxmi Jain, Principal. Aishwarya College,Udaipur In general, it is concern with proper balancing of external factors such as air, water, noise, climate etc., which by interacting with each other keep an ecological balance. The relationship between companies and the environment in which they are operating is gaining a lot of importance. The senior mgt is increasing recognizing that they have a responsibility not just towards their share holder but also towards their other stake holder. The conventional system of accounting does not consider those factors of production (natural resources) which are not included in the definition of economic factor. Therefore, the environmental depletion or degradation has not been included in the evaluation system and techniques. Environmental accounting has been introduced for this purpose which is an attempt to convert these impacts into monitory values. Environmental Accounting: Environmental Accounting takes stock of conventional resources plus natural resources and environmental resources; environmental resources are qualitative more than quantitative. As a general rule, with general acceptance due to increasing awareness and concern, environmental resources have begin to be treated as capital. Therefore, environmental accounting may be adopted to indicate environmental charges due to economic activities of a corporate entity. At national level, this may be aggregation of all such activates within defined territory integrating the results with the systems national accounts (SNA) so as to provide a valuable information base for planning, formulating, policies for the integrated sustainable development and growth of the national wealth and wellbeing. Environmental Accounting involves assigning monetary values to environmental goods and services which are valuable but not treated in market; their valuation would have to be resorted to through shadow pricing. Still scientific base for such valuations is to be evolved. Still scientific base for such valuations is to evolve. Estimates based on shadow pricing are often highly uncertain, quantified in terms with no fixed conversion to money, only portly or poorly quantified. In many context, environmental accounting is taken to mean the identification and reporting of environment specific cost such as liability cost and waste disposal costs. It is accounting for any costs and benefits that arise from charge to a firm's product and processes where the charge also involves a charge in environmental impact. Environment Accounting Dr. Vijaylaxmi Jain