ENVIRONMENTAL ACCOUNTING AND ANALYSIS OF THE ENTITY'S REPUTATIONAL ASSETS

Abstract

© 2020. All Rights Reserved. Environmental problems that have arisen all over the world are concerning many controversial aspects that were created due to the advance of industrialization in tandem with scientific and technological development. For solving these problems, in the past 40 years many international and national organizations have adopted a substantial and diverse range of environmental measures aimed to improving the quality of the environment. With the increasing use of modern technologies, such as big data, block chain, modern personal data protection systems, and the globalization of the world economy, the imbalance between the book value of the company's assets and liabilities and its market value is becoming more obvious. However, currently, most of the reputational assets are not shown in financial statements of entities due to the principle of prudence, according to which an accountant is more willing to recognize expenses than income (assets) in accounting. In this regard, the article examines the problems of accounting and analysis of reputational assets of entities. The essence of the concept of reputational assets and its relationship with the entity's business activity is considered. The article analyzes Russian and foreign accounting standards that regulate the rules for reflecting the reputational assets in accounting (financial) statements. Through the example of a number of leading domestic and foreign oil and gas producing and transporting companies, such as Exxon Mobil, Chevron Corporation, Royal Dutch Shell, PJSC NOVATEK, Total SA, PJSC Tatneft, PetroChina, PJSC RussNeft, Rosneft Oil Company, PJSC LUKOIL, Transneft, PJSC Surgutneftegas, and PJSC Gazprom, significant amounts of reputational assets were revealed non-identified. In addition, the article analyzes the availability of intangible assets and goodwill in the financial statements of these companies. As part of our research, we proposed changes to the rules for creating public non-financial reporting. Thus, for the purpose of improving the quality of generated information, it was proposed to establish mandatory disclosure in public non-financial reporting: the value of available reputational assets of an entity and four subsections describing the value of reputational assets. The business activity indicators most often found in the reports of leading domestic and foreign oil and gas producing and transporting companies were determined. We recommended mandatory disclosure of these indicators in public non-financial reporting in the subsections describing the value of reputational assets.