ENVIRONMENTAL ACCOUNTING IN UKRAINE: BACKGROUND AND HISTORICAL CONTEXT

Abstract

The purpose of the study is to consider the essence of environmental accounting and its role for society, to analyze the history of the development of environmental accounting and its current state, to identify possible directions for its further development and improvement in Ukraine. The article examines the causes and historical development of environmental accounting in Ukraine. The key stages of its formation, the influence of international standards and integration processes are analyzed. The importance of environmental accounting for sustainable development, economic benefits and increasing environmental awareness of the population and business is determined. The authors came to the conclusion that the problem of environmental accounting is extremely relevant in the modern world, as a large number of enterprises cause a negative impact on the environment through the use of natural resource potential. The growth of environmental problems of a global nature is becoming an integral part of this process. Most of the managers of the enterprises are not even aware of the amount of damage caused to the environment due to the lack of a system of methods, norms and requirements for environmental accounting in financial reporting. The traditional accounting system cannot adequately take into account the environmental impacts of the enterprise and perform the functions of environmentally conscious management and control. Therefore, the development of the environmental accounting system is extremely important, as it can become an effective tool for environmental protection activities at the enterprise. Analyzing the works of scientists, we can conclude that environmental accounting is a system that reflects the state and dynamics of the enterprise's interaction with the natural environment. This system must be built on the principles of full coverage, consistency, continuity and periodicity to ensure a complete and valid reflection of the state of nature and to establish the relationship between economic activity and the costs of environmental protection measures. The formation of environmental accounting in Ukraine is critically important for the country's enterprises. Implementation of the environmental accounting system will allow enterprises not only to effectively manage environmental risks, but also to realize a number of important advantages.  This includes the formation of information for the planning of environmental costs and revenues, the creation of competitive environmentally friendly products, the provision of reliable information to investors, the prevention of negative environmental consequences of economic activity, and the provision of control over the results of environmental protection activities. In the context of preserving the environment and creating safe and environmentally friendly products, the implementation of environmental accounting is a necessary step. It will also contribute to the improvement of the economic situation in the country and contribute to the creation of favorable conditions for sustainable development. Thus, Ukraine has all the prospects for the successful implementation of the environmental accounting system, which will contribute to the improvement of the ecological and economic situation in the country and the world.