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Accounting for Water, Land and Biological Assets in the Context of Sustainable Development Management: The Choice of a Main Meter

Author

Listed:
  • Serhiy Ostapchuk

    ('Institute of Agrarian Economics' National Scientific Centre, Kyiv, Ukraine)

  • Nataliya Tsaruk

    ('Nizhyn agrotechnical institute' Separated unit of National University of Life and Environmental Sciences of Ukraine, Nizhyn, Ukraine)

Abstract

Water, land and biological assets are key resources for human livelihoods. But while the value of the assets of the virtual economy is growing insanely, such assets of the real economy as natural resources, populations of individual animals and plant species are becoming increasingly limited, and their price in the financial statements of enterprises does not adequately reflect their social value. The purpose of the article is to disclose relativity and insufficiency of financial data about the water, land and biological assets in an enterprise's reporting for the needs of managing the sustainable development, and based on this, justifying the priority and wider use of a non-financial meters in accounting for such assets, as well as the need to generate reports based on combination of financial and non-financial information. The factors that increase the relativity of the money meter in accounting for water, land and biological assets were disclosed. Considerable attention is paid to the study of the content of non-financial reporting, which in our time is becoming an important component of information support for managing sustainable development. The expediency of the wide use of non-financial meters in accounting for water, land and biological assets was proved. Based on the systematization of water, land and biological assets and taking into account their natural and economic characteristics, an approach to the use of monetary and non-financial meters in the accounting of such assets was proposed. It was revealed that for natural assets non-financial meter is main, and for created or recreated by man - a monetary meter. However, both in the first and in the second case, a complementary meter should be used for the formation of full data of accounting at all levels, and mainly in reporting. Synthesis of financial and non-financial meters will help users better understand accounting data and will increase the effectiveness of managing sustainable development. An example was given of a combination of monetary and physical indicators in disclosing information on agricultural land plots and the right to use them in the notes to the annual financial statements.

Suggested Citation

  • Serhiy Ostapchuk & Nataliya Tsaruk, 2019. "Accounting for Water, Land and Biological Assets in the Context of Sustainable Development Management: The Choice of a Main Meter," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 36-47, June.
    • Handle: RePEc:iaf:journl:y:2019:i:2:p:36-47
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    References listed on IDEAS

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    3. Michael Common, 1991. "Natural Resource Accounting and Sustainability," The Economic and Labour Relations Review, , vol. 2(1), pages 89-121, June.
    4. Harris, Michael & Fraser, Iain, 2002. "Natural resource accounting in theory and practice: A critical assessment," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(2), pages 1-54.
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    Cited by:

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    2. Metelytsia, Volodymyr, 2023. "Sustainability reporting as a tool for attracting investments for the green reconstruction of Ukraine's agibusiness," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue 3, pages 78-83.

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    More about this item

    Keywords

    objects of accounting; land assets; water resources; biological assets; monetary meter; non-financial meter; financial statements of an enterprise; disclosure of non-financial information;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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