Improvement of the method of formation of reporting on natural capital

Abstract

The purpose of the article is to develop scientific approaches to the methodology of reporting on natural capital improving as a basis for its indicators disclosing in the context of environmental economy sustainable development. It is substantiated that switching to the system of complex state monitoring of the environment and improving the decision-making process information supporting system is possible by generating various reports, which should provide information on the use of natural capital. It is proved that in order to improve the accounting system in terms of forming an information base for environmental management and developing a mechanism for transferring information from financial to voluntary statements it is advisable to fill the financial statements on natural capital use indicators. Changes have been made to the Financial Reporting Form 1 «Balance Sheet». Schemes of transferring information from accounting records to Balance Sheet were developed. The analysis of the proposed reporting forms indicators allows us to determine changes in the value of environmental assets and sources of their formation, which will attract the attention of professionals involved in environmental activities to identify the causes that led to these changes. In order to determine the financial results of operations related to environmental activities it is proposed to amend Reporting Form 2 «Financial Statements». The conducted analysis of the food industry enterprises practical activity and stakeholders’ requests for environmental in «Management Report» by sections: rational use of water; waste management; greenhouse gas emissions; energy consumption and environmental management.

Keywords

• natural capital
• mandatory reporting
• voluntary reporting
• financial statements
• management report
• environmental activities