Accountance in the Context of Sustainable Development and Circular Economy

Abstract

A significant component of sustainable development, proclaimed by the UNO, is the requirement to significantly reduce the formation of waste by preventing, reducing, recycling and reusing them. In the context of the formation of sustainable models of consumption and production, it is the circular economy that can provide a restorative, closed nature and is intended to replace the linear economic model. Circular economy has a restorative, closed nature, is characterized by minimization of consumption of primary raw materials and volumes of recycled resources, reduction of waste and waste costs. However, the transition to a circular economy requires a completely new approach not only to the production process, but also to the management system, a significant component of which is accountance. The purpose of the research is to outline the features and tendencies of accounting evolvement in the conditions of sustainable development and circular economy. The article specifies that the speed of changes in practical activities and scientific research in the context of sustainable development causes a change in requirements and functional approaches to accountance. The theoretical and practical approaches considered allow to determine those features of sustainable development and circular economy that influence accountance. The most difficult challenge in the development of accounting in the conditions of sustainable development and circular economy is the combination of economic, ecological and social results, as well as formed, established principles of accountance and financial reporting, also ensuring their reliability. Research of theoretical conceptions of accounting for sustainable development on the basis of positive and normative accountance theories can contribute to standardization and unification of financial and non-financial reporting on the company’s performance in the context of sustainable development and circular economy, limiting the possibility of incomplete, incorrect, inaccurate or unnecessary information.