Облік і фінанси (Dec 2023)
Bioenergy Assets as an Innovative Accounting Object: Definition and Recognition Criteria
Abstract
One of the main tasks of Ukraine’s Energy Strategy until 2050 is to develop bioenergy and use renewable energy sources. A promising area of energy production is the processing of biomass and energy plants into biofuel. However, the need for a unified approach to the theoretical definition of the main elements of bioenergy and a standardized system of recognizing them as accounting objects determines the urgency of researching this problem. The study aims to substantiate the use of the new term “bioenergy assets” for accounting purposes, to form its definition following the identification parameters and to highlight the main criteria for recognition as an innovative accounting object. Analysis, synthesis, and deduction were used to identify a gap in the regulatory and scientific literature regarding the existence of a term that would combine energy assets of biological origin for accounting purposes. Specification of the term “bioenergy assets” was carried out by comparing existing terms and identifying their shortcomings. The synthesis and comparison became the basis for identifying the characteristic features of bioenergy assets, which will serve as criteria for their recognition in financial and management accounting. The article proposes that energy plants and organic substances (products, waste, residues of livestock and crop production) produced in agriculture, forestry, fisheries and related industries, as well as industrial and household waste of organic origin, which, in the process of biological, physical and chemical transformations, are capable of generating energy for public needs and bringing environmental benefits, should be considered as bioenergy assets. The new terminology that would serve as the basis for identifying an innovative accounting object was formed. The main criteria for recognition of bioenergy assets in the accounting and analytical system of enterprises were highlighted: renewability; non-fossil character; the ability to create energy as a result of biological, physical and chemical transformations; the opportunity to bring environmental benefits; and organic origin.
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