Yarmila Tkal, PhD, Associate Professor Department of Accounting and Taxation, Sumy National Agrarian University, Sumy, Ukraine

ORCID: 0000-0002-7646-2266
e-mail: y.tkal@snau.edu.ua

Alina Brychko, PhD (Economics), Associate Professor, Head of the Department of Public Management and Administration, Sumy National Agrarian University, Sumy, Ukraine

ORCID: 0000-0003-4902-1403
e-mail: alinа.brychko@snau.edu.ua

Financial Classification of Economic Accounting Facts in Environmental Management

Abstract. Introduction. In the context of modern sustainable development and growing environmental challenges, enterprises must integrate environmental considerations into their management systems. Accounting plays a crucial role in providing relevant information for decision-making, particularly by identifying, measuring, and reporting environmental costs and impacts. However, the absence of a structured financial classification system for accounting facts related to environmental activities hinders the evaluation of their influence on financial performance and management efficiency.

Purpose. The purpose of this study is to improve the financial classification of accounting facts within the framework of environmental management and to substantiate methodological approaches to their systematization in accounting practice.

Results. The study is based on an analysis of scientific literature, regulatory frameworks, and existing environmental accounting approaches. The study establishes that current accounting systems inadequately reflect environmental costs and related indicators due to the absence of a unified classification framework. The study identifies the following key categories of accounting facts in the context of environmental management: assets, liabilities, income, expenses, and financial results. Environmental costs are systematized according to their nature, sources of financing, functional purpose, and environmental impact. The authors propose an improved financial classification of accounting facts that incorporates monetary and non-monetary environmental indicators. Additionally, they substantiate the introduction of specialized subaccounts and separate environmental reporting within financial statements as a practical tool for enhancing transparency and analytical capabilities.

Conclusions. Implementing an improved financial classification of accounting facts contributes to the development of environmental accounting and strengthens the information base for environmental management. This allows enterprises to more accurately assess environmental impacts, optimize resource use, and support sustainable development goals. This approach improves the quality of accounting information, facilitates managerial decision-making, and promotes integrating environmental aspects into enterprises’ overall accounting systems.

Keywords: environmental accounting; financial classification; accounting facts; environmental costs; environmental management; accounting; sustainable development; accounting and analytical support.

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