Abstract: It is an innovative topic to compile the balance sheet of natural resources, which is of great significance to China's resources and environment management. Distinguishing between the entity of natural resources and the right to use natural resources derivedfrom natural resource management, this paper proposes a natural resource accounting system with three tiers, and designs the balance sheet of natural resources on the basis of the right to use natural resources, thereby solving the difficulties in defining and accounting of natural resource liability. The accounting of natural resources will not only meet the demand of "Responsibility Audit of Leading Cadres on Resignation", but also facilitate the full application of equity instruments in the sustainable management of natural resources as well.

Key words: Natural Resources, Balance Sheet of Natural Resources, Environmental Asset Accounts