Environmental Liability Accounting

Environmental Liability Accounting involves recognizing and quantifying potential costs related to environmental damage that a business may cause or be responsible for. This includes assessing liabilities for pollution, waste management, or any harm to natural resources. Businesses account for these liabilities to reflect accurate financial positions and ensure compliance with environmental laws. By doing so, they prepare for future expenses related to cleanup, fines, or legal actions, promoting transparency and responsible stewardship of the environment while also protecting stakeholders' interests.