Organization of agricultural enterprise environmental accounting under transition to international fnancial reporting standards

Abstract

The article considers environmental accounting under its transition to international fnancial reporting. Professional organizations such as the International Federation of Accountants (IFA), the Association of Chartered Certifed Accountants (ACCA), and the Chartered Institute of Management Accountants (CIMA) are involved in the implementation of environmental accounting basics in practice. To become competitive on the world market, Ukrainian enterprises need to create environmental accounting and management systems. Legislation amendment is among the external causes and incentives for this process, which can signifcantly reduce the negative impact on the environment. Amending involves correspondinf to the institutional structure and consumer preferences in foreign countries, ecological labeling, the public opinion influence, environmental initiative within the business community, environmental audit and environmental standards, the practice dissemination of «supplier audit» and «ethical» investments. The study elaborates on the reasons for pointing out the peculiarities of emissions accounting and reporting concerning greenhouse gases in the enterprises. Environmental accounting can be organized for both the total amount of emissions and for separate different processes of greenhouse gases. The emission calculation method is generally applied the national inventory though there are no precise limits as well as assortment of sources and the preset base yea in the national inventory. International fnancial reporting standards do not consider the complex issue of accounting for greenhouse gas emission reduction certifcates. The value of these certifcates can be signifcant. International companies of countries with developed economies own and sell carbon dioxide emissions reduction certifcates obtained in accordance with the mechanism of clean development of the Kyoto Protocol. Accounting for the main areas of agricultural production greening can be carried out within the developed concept of accounting which focuses on the environment. It uses the theory, methodology and organization of environmental accounting of quota trade within the Kyoto Protocol in the context of modern methods in terms of globalization and integration of existing accounting models into a united international system. Key words: ecology, agricultural enterprise, ecological accounting, international fnancial reporting standards, accounting.