Natural Resource Accounting: The Way Ahead

Abstract

Natural resources are that exist without any actions of human being. The natural resources are the foundation of any nation and if not protected properly, the nation cannot sustain for a long time. The business organizations in every nation should realize the importance of natural resources and its effective utilization. With the increased awareness regarding Natural Resource Management (NRM), the process of Natural Resource Accounting (NRA) has also become important than ever before . The process of NRA is not just recording the natural resources in monetary terms, but its interpretation also. One should clearly understand that process of natural resource accounting cannot be done in isolation for effective results. It has to be linked with Natural Resources Sustainability Information and with Community &Household Consumption and Production Decision Framework. For effective linkage among these components, Environmental Management System (EMS) and Environmental Management Accounting (EMA) should be in place. Accounting Professionals including CMAs can be a part of the creators of EMS and EMA within an organization.