IDEAS home Printed from https://ideas.repec.org/a/iaf/journl/y2019i2p36-47.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: http://www.afj.org.ua/pdf/655-oblik-vodnih-zemelnih-ta-biologichnih-aktiviv-v-konteksti-upravlinnya-stalim-rozvitkom-vibir-prioritetnogo-vimirnika.pdf
    Download Restriction: no
    File URL: http://www.afj.org.ua/en/article/655/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brunnschweiler, Christa & Edjekumhene, Ishmael & Lujala, Päivi, 2021. "Does information matter? Transparency and demand for accountability in Ghana's natural resource revenue management," Ecological Economics, Elsevier, vol. 181(C).
    2. Volodymyr Shevchuk, 2013. "Assets as Accounting, Control and Analysis Objects: Ecology&Economic Identification and Interpretation," Oblik i finansi, Institute of Accounting and Finance, issue 1, pages 66-73, March.
    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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. He Zhu & Yan Liang & Zhaoyang Li & Chuanbao Qiu, 2023. "Theory and Method of Ecological Value Accounting of Forest Resources," Journal of Economic Statistics, Anser Press, vol. 1(1), pages 45-67, February.
    3. He Zhu & Yan Liang & Zhaoyang Li & Chuanbao Qiu, 2023. "Theory and Method of Ecological Value Accounting of Forest Resources," Journal of Economic Statistics, Anser Press, vol. 1(1), pages 45-67, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ogbe, Michael & Lujala, Päivi, 2021. "Spatial crowdsourcing in natural resource revenue management," Resources Policy, Elsevier, vol. 72(C).
    2. Dmytro Liudvenko, 2020. "Information Needs of an Environmentally Conscious Society regarding the Functioning of Animal Husbandry Enterprises," Oblik i finansi, Institute of Accounting and Finance, issue 4, pages 22-29, December.
    3. Nataliya Zdyrko & Serhiy Ostapchuk & Nataliya Tsaruk, 2019. "Accounting for Agricultural Land in Ukraine: History of Genesis and Development," Oblik i finansi, Institute of Accounting and Finance, issue 3, pages 20-33, September.
    4. Ossama Mikhail & J. Walter Milon & Richard Hofler, 2005. "Is Investment in Environmental Quality a Solution to Recessions? Studying the Welfare Effects of Green Animal Spirits," Others 0510010, University Library of Munich, Germany.
    5. Randall, Alan, 2008. "Is Australia on a sustainability path? Interpreting the clues," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(1), pages 1-19.
    6. Brian Walker & Leonie Pearson & Michael Harris & Karl-Göran Maler & Chuan-Zhong Li & Reinette Biggs & Tim Baynes, 2010. "Incorporating Resilience in the Assessment of Inclusive Wealth: An Example from South East Australia," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(2), pages 183-202, February.
    7. Volodymyr Panteleiev, 2020. "Innovative Nature of the Enterprise Accounting Policies in the Conditions of the Post-Industrial Economy," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 39-49, June.
    8. Tzai-Chiao Lee & Muhammad Khalid Anser & Abdelmohsen A. Nassani & Mohamed Haffar & Khalid Zaman & Muhammad Moinuddin Qazi Abro, 2021. "Managing Natural Resources through Sustainable Environmental Actions: A Cross-Sectional Study of 138 Countries," Sustainability, MDPI, vol. 13(22), pages 1-19, November.
    9. Gren, Ing-Marie & Isacs, Lina, 2009. "Ecosystem services and regional development: An application to Sweden," Ecological Economics, Elsevier, vol. 68(10), pages 2549-2559, August.
    10. Serhiy Ostapchuk, 2017. "Chinese Model of Land Use Accounting: Lessons for Ukraine," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 57-62, June.
    11. Michael Harris, 2001. "The Income of Nations: Measurement with (What?) Theory," Working Papers 2001.09, School of Economics, La Trobe University.
    12. Christa Brunnschweiler & Ishmael Edjekumhene & Paivi Lujala & Sabrina Scherzer, 2022. "You need to have this information: Using videos to increase demand for accountability on public revenue management," University of East Anglia School of Economics Working Paper Series 2022-10, School of Economics, University of East Anglia, Norwich, UK..
    13. Wills, Ian R., 1992. "Implementing Sustainable Development: Systems and Signalling Problems," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 60(02), pages 1-7, August.
    14. Ferreira, João J. & Gomes, Sofia & Lopes, João M. & Zhang, Justin Z., 2023. "Ticking time bombs: The MENA and SSA regions' geopolitical risks," Resources Policy, Elsevier, vol. 85(PA).
    15. Matthew Clarke & Sardar M. N. Islam, 2006. "National account measures and sustainability objectives: present approaches and future prospects," Sustainable Development, John Wiley & Sons, Ltd., vol. 14(4), pages 219-233.
    16. Matero, Jukka & Saastamoinen, Olli, 2007. "In search of marginal environmental valuations -- ecosystem services in Finnish forest accounting," Ecological Economics, Elsevier, vol. 61(1), pages 101-114, February.
    17. Harris, Michael, 2003. "Depreciation and Obsolescence in the Context of Natural Resource Accounting," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57886, Australian Agricultural and Resource Economics Society.
    18. Youmanli Ouoba, 2023. "Testing the necessary conditions for sustainability in the mining sector in Burkina Faso," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 36(1), pages 1-12, January.
    19. Most. Mukta Khatun & & Md. Sagar Hossain, 2023. "Critical Accounting Theory: Unveiling Power Dynamics and Enhancing Accountability - An Empirical Study on Existing Literature," International Journal of Science and Business, IJSAB International, vol. 25(1), pages 106-116.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iaf:journl:y:2019:i:2:p:36-47. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Serhiy Ostapchuk (email available below). General contact details of provider: https://edirc.repec.org/data/iafkvua.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.