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Environment is becoming a much more urgent economic, social and political problem all over the world. World is facing the twin problem of promoting economic development and protecting the environment. In this juncture the proper accounting of environmental effects on economic development is pre-requisite to have a sustainable development. It is observed that many efforts have been done to develop a mechanism of incorporating environmental data with national income to compute economic development. Moreover, all such attempts do not address the micro economic aspect of environmental data as such interaction between a specific firm and environment. The accounting of interaction between firm and environment is a pre-requisite to find out sustainability gap in micro level. This study attempts to address the development of corporate level environmental accounting and the problems associated with that. The study is under taken considering the environmental accounting and reporting adopted by sample companies in India . Key word: Environment, Accounting and reporting, environmental cost, liability and Assets

Corporate Environmental Accounting: the issue, its practices and challenges: A study on Indian corporate accounting practices