Resource accounting

Concept of Resource accounting, aim, origin and methods of resource accounting, advantages and disadvantages of resource accounting. Conclussion and future prospects

1. Resource Accounting Presented by- Ananya Bharadwaj P.G. 3 rd Semester Roll No.-09 M.C. College, Barpeta

2. Introduction Resource accounting is an accounting system which provides information on stock of resources available at particular place and time. It is a process of estimating the value of natural resource depletion and environmental degradation due to economic activities.

3. Origin of Resource Accounting The System of National Accounts (SNA), which is an accounting framework measures only the economic activities of production, consumption and accumulation of wealth in an economy and provides for analyzing and evaluating the performance of an economy during a period of time. Further, major development has been adoption of integrated System of Environmental and Economic Accounting(SEEA) which describes the interrelationship between the economy and the environment. Unlike the conventional accounting system,this system provides for computing the depletion of resources and environmental degradation. That is how resource accounting is originated.

4. Aim of Resource Accounting To provide information of the state of resource and the change affect them. Aims to increase in sustainable development. Aims to maintain and restore the resources. Aims to provide a framework for organizing information on the status, use and value of natural resources and environmental assets as well as expenditures on environmental protection resource management.

5. Resource Accounting Methods Physical accounts: Physical accounts of natural and environmental resources enumerate changes in resources quantity and quality in physical units such as barrels of oil. Monetary account: The monetary approach to natural resource accounting is found on the premise that income aggregates, such as GNP and NNP, give a distorted view of economic progress. Satellite account: Satellite accounts are natural resource accounts that are kept separate from the core national income accounts. They can be reported in either physical or monetary units.

6. Advantages Resource management. Policy planning. Identification and accounting the natural resources within the economy. Monitoring sustainable development goals.

7. Disadvantages It is a long term process therefore it doesnot give any conclusion. Collection of authentic data and valuation of resources in monetary terms.

8. Conclusion India is yet to commence any form of annual environmental accounting of its resources. Thus, any progress towards preparation of resource accounting would hinge upon the idea of continuous generation of reports, at prescribed intervals. The flexibility in designing the resource accounts as per the need of the respective country, implementation has been planned in a phased manner in respect to nonrenewable resources to start with and thereafter rolled out to cover the renewable resources.

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