Accounting treatment of forests in Republic of Bulgaria

Abstract

Forests are part of our national wealth and they have not only economical significance for the country but also social and ecological ones. They are very important for the sustainable development of the society and for the improvement of our living standard. Main problem identified in the present paper is that forests are currently not recognized as assets by the Bulgarian public entities and this impedes their effective management. Another problem is that cost of sales of harvested product (felled trees) could not be reliably calculated. The study recommends an accounting model that combines a specific analytical reporting with the use of an asset off-balance sheet accounting. The so proposed model will enable generating of accounting data in monetary terms and integrating it with the existing quantitative indicators for forest assets. This will lead to quality improvement of information used in forest management on one hand, and on the other hand to accounting indicators for forest maintenance expenses