Assets Restatement Model from the Natural Capital Maintenance Perspective

Internal Auditing & Risk Management , Vol. 4, Issue 20, pg. 71-80, ISSN 2065 – 8168, 2010

11 Pages Posted: 17 Oct 2016

See all articles by Raluca Guse

Raluca Guse

Bucharest Academy of Economic Studies

Daniela Artemisa St. Calu

Bucharest Academy of Economic Studies

Adriana Calu

University of Bucharest

Avram Viorel

Independent

Date Written: 2010

Abstract

The present research aims to propose a new approach to defining and measuring assets in terms of the negative effects and net benefits arising from their use and affecting the natural capital. In this regard, we provide a new definition and a reclassification of assets in three categories, depending on the nature of their environmental impact. The proposed categories are: natural assets, neutral assets and polluting assets. Given that natural assets can not be object to reliable measurements, we find as appropriate the current qualitative reporting techniques (Corporate Social Responsibility Reports – CSR). Balance sheet assets, reclassified as neutral assets and polluting assets will be restated based on an environmental factor. The proposed model may be used for financial and non-financial reporting of environmental issues, as well as an instrument for environmental audits and for the assessment of environmental risks.

Keywords: Neutral Assets, Polluting Assets, Environmental Factor, Environmental Audit and Risk, Positive and Negative Externalities

JEL Classification: Q56, M40, M41, M42, O13

Suggested Citation

Guse, Raluca and Calu, Daniela Artemisa St. and Calu, Adriana and Viorel, Avram, Assets Restatement Model from the Natural Capital Maintenance Perspective (2010). Internal Auditing & Risk Management , Vol. 4, Issue 20, pg. 71-80, ISSN 2065 – 8168, 2010. Available at SSRN: https://ssrn.com/abstract=2852750

Raluca Guse (Contact Author)

Bucharest Academy of Economic Studies ( email )

6, Romana Square, District 1
Bucharest, 010374
Romania

Daniela Artemisa St. Calu

Bucharest Academy of Economic Studies ( email )

6, Romana Square, District 1
Bucharest, 010374
Romania

Adriana Calu

University of Bucharest ( email )

14 Academiei St.
Bucharest, Bucuresti 70109
Romania

Avram Viorel

Independent ( email )

9740 49th Ave NE
Seattle, 98115

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