Information on climate change in financial statements: Disclosure and analysis

Abstract

Subject. This article deals with the issues of climate change, which has a great impact on the agricultural industry, and the role of professional accountants and auditors in the disclosure of climate information in the reporting of agricultural organizations. Objectives. The article aims to study the problem and suggest ways to improve the methodology for accounting and reflecting information by an agricultural organization in the context of climate change. Methods. For the study, we used a dialectical approach, observation, synthesis of disparate information, and analysis of the results obtained. Statutory acts on accounting legislation, scholarly works of Russian and foreign scientists, and research and surveys of audit and consulting companies served as the information base of the study. Results. The article reveals the problem of investors' distrust of the climate information disclosed by companies, due to the lack of awareness of management about the impact of climate change on the business of companies. It suggests ways to improve the efficiency of implementation in business and the reflection of such information in reporting, as well as variables included in the analysis of the activities of agricultural companies in the context of climate change. Conclusions. The company's management should strive to improve the effectiveness of the introduction of new methods, techniques and technologies in the business to increase the effectiveness of the impact on climate change in order to prevent negative impacts and improve profitability. The introduction of new environmentally friendly products and processes and initiatives to reduce company emissions play an important role in this, but there is a need to increase the pace of implementation of these initiatives in companies, as well as introduce special checks on disclosures on climate change in order to improve confidence in data.