The aim of the present study is to scrutinize accounting concepts, definitions, theories, and methods which are related to environmental accounting, and consequently is to provide an overall view for this subject. In this research, through library study and analyzing previous environmental accounting researches that have been conducted inside and outside Iran, the researchers seek to present a general framework regarding the subject. The results maintained that identifying, measurement and recording the environmental expenditures result in an improvement in financial reporting and also in an increase in effectiveness in the process of planning, controlling and performance evaluation in management accounting; moreover, regarding the process of budgeting of the government, it also results in an improvement in planning and resource allocation. At the moment, there is no standard for environmental accounting in Iran; as a result, in order to preserve the environment, the present study suggests an immediate action in standard setting in environmental accounting, which requires the collaboration of universities and professional societies.
