D. Ulianova, PhD student Taras Shevchenko National University of Kyiv, Kyiv, Ukraine ACCOUNTING ESTIMATION OF LIABILITIES OF ENVIRONMENTAL ACTIVITY

Environmental protection is one of the main stream in business development.The purpose of this research is to identify how company should account their environmental liability. The article consists of National Accounting Standards or International Accounting Standard Company analyses as both can be used in Ukraine. This article describes options for environmental liability accounting. On the one hand, company can identify environmental liability, and book it on below-line balance account. It is called contingent liability in that case. On the other hand, such liability can be considered as object for provisions. The second option means that company not only identify its environmental liability, but also will step to step create essential amount for environmental management. Also such allocation can be included into expenses. In that way company divide potential losses between periods and secure company from the big one in some recognized period. Sometimes such outstanding liabilities can lead to bankruptcy because of huge amounts.

Keywords: contingent liabilities, environmental costs, fund, provision.

DOI: http://dx.doi.org/10.17721/1728-2667.2014/164-11/12

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