Accounting analysis and audit

Monetary valuation of forestry’s natural capital

Economic Annals-XXI

Economic Annals-XXI: Volume 130, Issue 5-6(2), Pages: 61-64

Citation information:
Yacovets, T. (2013). Monetary valuation of forestry’s natural capital. Economic Annals-XXI, 5-6(2), 61-64. https://ea21journal.world/index.php/ea-v130-18/

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Tetyana Yacovets
Post-Graduate Student,
Ternopil State Economic University, Ukraine
tetjana-samoylova@ukr.net

Monetary valuation of forestry’s natural capital

Abstract. The article deals with the concept of «forest» and «forest resources» and finds out that in terms of the forestry enterprises functioning forest is a combination of natural assets that are the basis for creating forestry enterprises and have a significant impact on the organization of their financial and economic activity. Forest resources are defined as products that are formed during the usage of wood and designed for usage in further manufacturing processes. The relationship of natural capital and biological assets is determined. The methods of evaluation of natural capital of forestry are proved: the method of the desired effect (for assessment of forest standing), rental approach (to assess forest lands), and the method of the average purchase price (to assess forest resources). The formula to estimate forest on roots and land in order to reflect the value of natural capital in the accounting system is proposed and the definition of its growth strategy is worked out for constructing optimal accumulation of the forestry enterprises’ natural capital. A model of monetary valuation of natural capital is created.

Keywords: Monetary Valuation; Natural Capital; Forest; Forest Resources; Biological Assets

JEL Classification: C13; E22; Q26; M40

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Received 10.04.2013

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