Экономические науки/7. Учет и аудит

Д.э.н., проф. Каморджанова Н.А., Селезнева А.В.

Санкт-Петербургский государственный экономический университет

Non-financial reporting of organizations as a realization of the ideas of Nikolay A. Blatov’s «Balansovedenie» («Study of balance»)

Changes occurring in the global economy, put the problem of a more accurate evaluation of companies in the market. As in modern conditions the company can create not only the values that relatively accurately determined by through national and international systems of accounting and reporting, but also an extra cost which cannot be estimated. The development of such evaluation is a challenge of the future, and non-financial reporting is a first and important step towards this.

Aware of their own interests and the results of their actions, people constantly sets themselves questions which form the basis of all their activities: «1. What can I know? 2. What should I do? 3. What can I hope for?»[6]. It feels the need for the theory and concepts of a general nature, which would help us in the present and in the future. It is necessary to consider developed scientific theories and to solve the problems of their possible application and further streamlining.

Parts of scientific knowledge are periodically reinterpreted or simply rejected. New theories and concepts arise, also arise new methods and values which may be contrary to previous notions. Vladimir I. Vernadsky wrote: «The history of scientific thought is going in ways that are far from the expectations of our logical thinking. We constantly observe that new discoveries, new points of view in the root change our understanding of the importance and significance of those or other standing in the line of scientific thinking challenges. They completely and abruptly moved the nature of scientific work, the range of her interests and missions. Immediately dies away a shine of old researches, out of the way light up the new areas of thought»[9].

Yaroslav V. Sokolov considered that changing of theories and their coexistence caused by objective reasons ‑ the development of formal thinking, and subjective reasons ‑ features of educating people, their desire to express themselves in science, their style of thinking [8].

Sometimes it happens that a new generation brings with it a new and higher level of abstraction, in this case one speaks of the advancement of science. The most daring new theoretical constructions never arise and cannot arise regardless of the already established system of scientific attitudes and perceptions.

Written by Nikolay A. Blatov in 1927 «Balansovedenie» («Study of balance») is a first attempt at a systematic exposition of those questions, which collectively create a complete independent counting discipline ‑ total study of balance.

Nikolay A. Blatov in his book was going to say and to remind what a complex phenomenon represents the balance. He succeeded to the fullest. Blatov, before offering his own definition of the balance, gives definitions of other authors [2]. More Blaise Pascal pointed out that it is impossible to identify all, exactly the same as it is impossible to prove everything. Definition reduces the unknown to the known, no more. This always assumes that there are some things known without any definitions and explanations, some things are clear in themselves, they are less in need of definition. «Self-evident and obvious should not be defined; the definition only will darken it,» ‑ wrote Pascal [3].

Definitions operate in a very narrow range. On the one hand, it is limited by the fact that it recognizes obvious and does not require special explanation, reduction to something more well-known and obvious. On the other hand, this interval is limited by the fact that it remains insufficiently investigated and understandable to provide the definition a precise characterization. All this adequately Nikolay A. Blatov has reflected in respect to the definition of balance: «a long series of determinations from different viewpoints suitable to balance reveals those highlights, those principal parties of balance, which must be recorded in its complete determination, namely: 1) the relationship of balance with the inventory; and 2) the feedback of balance with counting entries; and 3) the content of balance, covering along with static also dynamics of the economy; and 4) confinement of statics to a particular moment and dynamics ‑ to a certain period of time; and 5) the method of opposition of Actives and Passives; and 6) the form of a bilateral table, as an expression of this contraposition; and 7) brevity and compactness of balance, which distinguishes it from the other statements and schedules representing the property status of economy; and 8) strict consistency of its construction; and 9) application in the construction of balances methods of accounting subtraction and addition, reducing to that the value which is substantially decrease associated with it another value does not deducted from it directly, but it is shown on the opposite side of the of balance; and the value which is substantially complements another value associated with it, does not add up to her, but shows as an independent article on the same side of the balance» [2].

Essential in our opinion is the fact that Nikolay A. Blatov considered and showed the difference between the summary balance sheets and complex balance sheets: «A complex balance is obtained by adding and mechanical article by article applying of one simple balance sheet to another and summarizing in a special column the grand total of assets side of the balance sheet and the grand total of liabilities side of the balance sheet. In a complex balance sheet are also reflected mutual settlements between the Management Board and the peripheral units. Summary balance sheet is obtained different way ‑ through organic merging of individual balance sheets in the general balance of the entire economy. Summary balance sheets are given less information than complex balance sheets» [2]. Nikolay A. Blatov emphasized that not all the scientists can tell the difference between them: «We observe that carried out by us the difference between the concepts «complex balance» and « summary balance» is not generally accepted, and in practice the complex balance sheets usually also referred to as a summary balance sheet».

At the moment in the accounting of European countries a lot of attention is paid to the consolidated balance sheet as one of the varieties of summary balance sheets. For the establishment of the idea of consolidation has played a significant role the famous Seventh Directive «Accounting and consolidated financial statements» developed and adopted by the European Community in 1983. Most countries - the members of the European Community have incorporated the guidelines of the Seventh Directive into their national legislation.

In Nikolay A. Blatov’s «Balansovedenie» (Study of balance) was carried out and presented schematically the classification of balances: 1. Drawing on sources (Inventory. Book. General). 2. Deadline for compiling (Opening (initiatory). Operating (trial). Liquidation (final)). 3. In «Balansovedenie» (Study of balance) Nikolay A. Blatov was carried out and is presented schematically the classification balances: 1. Drawing on sources (Inventory. Book. General). 2. According to the deadline for compiling (Opening (initiatory). Operating (trial). Liquidation (final)). 3. According to the volume (Simple. Complex. Summary). 4. According to the content (Account balance. Turnover. Profit and lost. Articulation statement. Operational. Comparative). 5. According to the shape (Double-sided. Unilateral. Articulation statement.). In scheme presented by Nikolay A. Blatov, there are no names balance gross and balance net, as the scientist believes that these terms indicate the notion of a completely different content and that «they have not absolute but relative importance: from two balance sheets one of which is obtained through simplification and generalization of another one, the balance that has been the basis will be gross balance, but one that has turned out as a result of simplification or generalization is net balance».

The modern Russian scientists, including Valery V. Kovalev and Victor V. Patrov use the classification attributes proposed by Nikolay A. Blatov (the source of compilation, the preparation time, the amount of information), and complement it (the nature of activities, forms of ownership, the object of reflection, the method of cleaning) [7].

Despite the enormous contribution of Nikolay A. Blatov, as well as many modern Russian scientists, such a complicated phenomenon as a balance (and the financial statements as a whole) does not allow to fully appreciate the value of companies in the market. In order to eliminate this need in the modern science occurred such a phenomenon as non-financial reporting which must be a complex information system, reflecting reliable and accessible for key stakeholders the main aspects and performance of the company in a complex on the ecological, economic and social aspects [1].

It is necessary to monitor, measure and evaluate the activities of companies in any field: both the process and the results, otherwise such activities may turn into unforeseen losses and disasters of various kinds. Hence the most important goals of formation the non-financial reporting are:

- increasing stakeholder awareness about company activities: about socially significant projects, charity, about the impact on the environment and the economy, on corporate social responsibility;

- strengthening the market position of increasing the value of the company due to intangible assets ‑ formation of the company's reputation as an open, accountable, engage in dialogue with stakeholders, socially responsible;

- structuring the internal organization of the company: comprehension of necessity to have a strategy for the development, plans, understanding policies of social corporate responsibility;

- construction of an optimal functional social infrastructure of management activities of the company.

Proceeding from the goals, we can conclude that the non-financial reporting is aimed both at strengthening the company's position in world space, and the optimization of processes and relationships within the company.

Non-financial reporting can be used as external users and internal users too ‑ managers, the internal audit service. In general, the scope of the information contained in the reports of non-financial companies, is already quite wide. Produced mainly on a voluntary basis, non-financial reports highlight related to the sustainable development of the company risks and opportunities, whether public or private entity, the state authority, academic institutions, commercial or non-profit organization. Non-financial reporting allows you to create the most favorable impression of the state of affairs of an entity, and thus to attract more investors, customers, potential partners and employees.

Non-financial reporting is actively used by different rating agencies, for example, international corporate governance rating of Standard & Poors. With the widespread use of ballroom-ratings non-financial reporting in modern society serves as bonus points to the company. Rating agencies are actively trying to develop their own indicators of non-financial reporting, which would allow the most accurately evaluate the activities of companies. For example, ecological and energetic rating agency Interfax-ERA determines companies’ rating on the basis of four options ranging (eco-efficiency of energy production, technological efficiency of the equipment used, the dynamics of efficiency, transparency), where the eco-energy efficiency is an integrated indicator of the amount of useful production (in volume and value terms) obtained per unit of energy and environmental impact of the total unit [5].

Non-financial reporting can also serve as a great information database to support investment and innovation projects as well as projects implemented by way of a public-private partnership.

Undoubtedly, the non-financial reporting is not just a tool to inform the society about activities of the company but also a mechanism of influence on the confidence of interested users (stakeholders).

Every subject of economic activity that adopted the decision about the formation non-financial reporting, is completely free to choose the type of report. The subject can be based exclusively on internal reporting opportunities as well as on the creative conception which he is going to use in the preparation of the document.

At the moment the theoretical approaches to the formation of the non-financial reporting in accordance with which companies prepare their social and annual reports are disclosed by a variety of existing guidelines: Principles CERES (Coalition for environmentally responsible economies creation), the Global Reporting Initiative (GRI); Social Charter of Russian Business, international standards of series AccountAbility; UN Declaration Millennium Development Goals (MDGs), and others. If a company has implemented management systems in accordance with specific guidelines, such as ISO 14001 or OHSAS 18001, the report will be focused on these standards.

Among the existing nowadays standards it is not present such that would cover all the components of the concept of corporate social responsibility, so «standardized» basically referred the reports prepared by using a specific guidelines for reporting. The advantages of this type of report can be named the most systematic approach to the preparation of business information, and the availability of opportunity to compare the prepared reports with the reports of other companies.

Non financial reporting, disclosing the company's performance on complex environmental, economic and social aspects from the perspective of sustainable development, all other conditions being equal is considered as a competitive advantage and has a great significance for business reputation, relationship to her investors and analysts.

Competently formed non-financial reporting:

- increases the internal and external informational exchange business entity;

- provides a concretized and structured presentation of the activities of economic entities, which cannot be represented by the financial statements;

- increases the efficiency of the internal control system allows to avoid fraud and abusive practices in the field of professional activity;

- is the ideal information database, formed by direct interactions with key stakeholders for management decisions making;

- provides an excellent information database to support investment and innovation projects;

- is a guarantee that the partner supports the concept of sustainable development and is able to be responsible for the results of his own company;

- increases awareness of stakeholders about the company: socially significant projects, charity, about the impact on the environment and the economy, on corporate social responsibility as a whole;

- intensifies the market position of the company: the company's value increases at the expense of intangible assets ‑ the formation of the company's reputation as an open, accountable, engage in dialogue with stakeholders, socially responsible;

- is a complete statistical database.

Consequently, non-financial reporting is an essential factor to improve efficiency, competitiveness and investment attractiveness, reflecting evaluation of companies in the sphere of economic sustainability, social development and environmental responsibility. Definitely the formation of the non-financial reporting consumes a considerable amount of labor, money, time and other resources, but the positive effect of the generated statements justifies these expenses. Non-financial reporting allows to simplify the process of preparing for participation in the selection: with finished non-financial reporting the company as a potential participant have more time for careful development directly of the project, and the time in the contemporary world is one of the most valuable resources.

As far as in accordance with the current legislation a number of organizations obliged to publish its financial statements, it is still relevant remarks Nikolay A. Blatov that «making balances clear and understandable for those who do not know accounting ‑ something even more difficult. It would be desirable that the most interesting for wide readership balances (balances of trusts, trading syndicates, consumer's associations) were placed in newspapers in two versions: one for accounting educated readers, compiled by all the rules of counting science, with the reserves, regulatory accounts, off-balance sheet items etc., and the other one ‑ for ordinary readers, easy in their structure and in their names».

At the UN Conference on Environment and Development (Rio de Janeiro, June 1992) was emphasized that «scientists do not like to give recommendations until gather all the evidence because They take into consideration the possible risk of action under incomplete information. But uncertainty is a feature of life, and we must learn to act in the face of uncertainty. The decision makers should not hide behind science, referring to the need achieving scientifically grounded definiteness before starting to act. Definiteness in science is impossible, and therefore leaders must make decisions under conditions of uncertainty this is what they thus may be useful» [4]. This applies, of course, to the development of the theory «Study of balance» than was engaged one of the famous Russian accountants theorists Nikolay A. Blatov.

In an open, irreversible world where the future cannot be exactly predetermined, and the present has several potential developmental lines, the person is in a situation of permanent choice, finding the optimal solutions to meet changing conditions. Books of our great predecessors help us make this the right choice.

Many of the challenges that concern accountants today and in the solution of which they feel themselves trailblazers were already traversed stage for national and foreign accounting system. Only ignorance of this leads us to repetition, search simplified solutions to scientific and practical problems of accounting, already permeated with the intelligence of our talented predecessors.

Accumulated Nikolay A. Blatov developments in study of balance became the pride of the Russian accounting. Save this experience and apply it to contemporary accounting problems ‑ such a goal stood before the authors in writing the article.

Literature

1. Accounting statements as an information base of socio-economic systems: monograph / Kamordzhanova N.A. [and others]; under Society. Ed. N.A. Kamordzhanova. St. Petersburg.: SPbGIEU, 2012. - 500 p.;

2. Blatov N.A Balansovedenie (Study of balance) (general course). - Leningrad.: Economic Education, 1928.

3. Cognition in a social context. - M.: IFRAN, 1994.

4. Conference United Nations on Environment and Development (Rio de Janeiro, June 1992). Information review. Koptiug VA - Novosibirsk, SB RAS, 1992. - Pp. 19 - 20.

5. Ecological and energy rating agency Interfax-ERA: poster. URL: http://interfax-era.ru. (date accessed 01/26/2014).

6. Kant I., Critique of Pure Reason // I. Kant, Soch. 6 v. M.: Thought, 1964, Volume 3, pp. 72-695.

7. Kovalev V.V., Patrov V.V. How to read a balance sheet. - 4th ed., Rev. and add. - Moscow: Finance and Statistics, 2002.

8. Sokolov Y.V. Accounting: from the beginnings to the present day: Proc. manual for schools. - M: Audit, UNITY, 1996.

9. Vernadsky V.I. Living matter and the biosphere. - M: Nauka, 1994.