ESG AT THE FOUNDATION OF INDUSTRY 5.0 AND ITS IMPACT ON MANAGEMENT ACCOUNTING

In addition to the difficult and constantly changing economic conditions, accountability needs to change its approaches due to the introduction of new regulations. In the European Union, the burden on economic entities is caused by the most severe requirements for social and environmental responsibility, the circular economy and carbon footprint. All these prerequisites require the relocation of various industrial production to countries outside the EU and/or to other continents. At the same time, the regulatory requirements in question give rise to the processing of significantly more information from the reporting systems in enterprises. The processes require the creation of a different organization of financial and management accounting. This requires the use of management accounting tools more and more in the preparation of financial statements and the information to them. All regulations imposed to integrate ESG standards are based on the idea and concept of Industry 5.0