The companies buy furniture for their offices and investment made in this regards is classified as noncurrent assets in the balance sheet. The amount of expense incurred in purchasing fixed assets like furniture needs to be capitalized. This is unlike expensing out the complete amount of the fixed asset. The amount of fixed asset is charge with depreciation each year. The concept of depreciation is a simple but handy one. There are two most commonly used types of charging depreciation. The first one is the charging of depreciation on a straight line basis. Under this method the depreciation is charged by applying a certain percentage on the cost of the asset. The expense for depreciation is a fixed amount that is included in the income statement. The second type of charging depreciation is diminishing balance method. This method is a slight difficult to apply but the overall principles are somewhat the same.
Under this method of charging depreciation, the rate is applied to an amount of assets that is calculated after deducting depreciation expense from the cost of the assets. This means that the percentage of charging depreciation is the same from the first to the last year but the amount of depreciation is not same as in the case of charging depreciation as per straight line method. Green Eco Friendly Office Furniture uses several methods of preparing furniture that causes no or minimal loss or harm to the environment. Some years or decades back the businesses started to realize that some of their commercial nature activities are actually causing problems for the environment. This is caused because the nature of some company’s production process requires emitting some gases and wastages. This wastage is dumped into a city or river or in case of gases is diffused in the air. When this is the case, the wastage then becomes part of the air or environment which is inhaled by common people. This also resulted in sharp depletion of the forest also. Leed Certificate Award is then launched to award companies who take healthy steps in order to produce economic friendly Office Chairs and business activities.
Companies have now largely advertised the reasons and causes of making sure that the activities they carry out makes no or minimal amount of damage. The companies have also tried to reduce the amount of damage they cause to the environment due to their activities. The damage is reduced by inventing several ways that reduce the damage done both by introducing activities that could clear or filter the environment and also to do activities that have psychological effects on human beings. The best thing to be done in this regard is to invest heavily in green activities. By the term green activities it is assumed that the activities relating to planting and making parks is necessary in order to provide a healthy environment to the people at large. Secondly the company also gets the environmental audit done in order to ensure that the harm caused to the environment due to their activities is under the required range. The entity then publishes the audit report of environment in their correspondence so that general public is aware of the same fact.
Provide Benefits to Company by Environmental Accounting