Blue Accounting: Looking

for a New Standard

Rute Abreu, Fátima David, Luís Lima Santos, Liliane Segura

and Henrique Formigoni

Abstract This research explores the framework of the marine knowledge, in

general, and the blue accounting, in particular. On the one hand, the seabed, the
ocean floor, and the subsoil allow to promote several activities to explore these
resources. On the other hand, the pollution and degradation of the marine envi-
ronment due to human intervention which damage and harm the marine life and
produces strong risks and threats to this environment. In this context, marine
resources are a public good which is available to everybody, at all time, but without
payment or compensations to this collective pressure of human activity. In order to
reinforce the marine knowledge, the blue accounting will provide to the citizen, to
the organization and to the society valuable information based on accounting
standards that identify, measure, value, and report this blue growth that is the ocean
strategy with new opportunities for marine and maritime sustainability. The fast
evolution of the marine knowledge demands profound accounting researches that
will study the increasing impact on the use, the management, the associated costs,
and the new report opportunities of these resources and its value. This research will
reduce the negative effect of politics and Governments that forget the blue
accounting as essential to support the blue economy and ocean strategy, because
sciences are interdependent and scarcity of marine resources demands knowledge to
emerge these first insights and then mitigate uncertainties and risks.

Keywords Blue accounting
Marine knowledge
Maritime resource

Valuation Measurement

R. Abreu (&)
F. David

Guarda Polytechnic Institute/UDI-IPG/CICF-IPCA, Guarda, Portugal
e-mail: ra_ipg@hotmail.com
L. L. Santos
Leiria Polytechnic Institute/CiTur Leiria, Leiria, Portugal
L. Segura
H. Formigoni
Universidade Presbiteriana Mackenzie, São Paulo, Brazil

© Springer Nature Singapore Pte Ltd. 2019 27

D. Crowther et al. (eds.), Responsibility and Governance,
Approaches to Global Sustainability, Markets, and Governance,
https://doi.org/10.1007/978-981-13-1047-8_3
28 R. Abreu et al.

1 Introduction

Dacin et al. (2007) states that legitimacy is the central concept of organizational
institutionalism, i.e., Higher Education Institutions as part of the education system
need not only to promote the technical studies and information about their envi-
ronment, but also to increase the credibility and the acceptance of knowledge in the
society. So, researchers are indispensable to transfer knowledge to the society and
to the organizations, in order to consolidate the teaching-learning process and
thereby to justify to the society, in general, and to the organizations, in particular,
new areas of researches, such as: Blue Accounting.
This research explores the framework of the marine knowledge (Appeltans et al.
2012), in general, and the blue accounting, in particular. Blue accounting will develop
with an unprecedented urgency, because is associated much more than financial
accounting and management accounting, because it deals with valuation and reporting
itself that seek to assist specialists in certain aspects of the process of degradation,
reuse, and damage with tremendous acceleration process of destruction over the past
years (Boonstra et al. 2018). These information needs to be accountable to be reported
and “it demands innovations that can increase human well-being and at the same time
enhance the capacity of ecosystems to produce services” (Moberg 2016).
As Georgeson et al. (2017) argues the green economy has emerged as an
important policy framework for sustainable development in both developed and
developing countries. It presents an attractive framework to deliver more resource
efficient, lower carbon, less environmentally damaging, more socially inclusive
societies (UNEP 2013; van der Ploeg and Withagen 2013). The same defines the
World Bank (2017) that explains in relation with blue economy that it is the
sustainable use of ocean resources for economic growth, improved livelihoods and
jobs, and ocean ecosystem health. The blue economy encompasses many renewable
energy, tourism, climate change, fisheries, waste management, and maritime
transport (UNEP 2015).
This first publication aims to promote the new accounting research that starts, in
2015, with this main idea born in a Conference promoted by the Global Business and
Technology Association, held at School of Tourism and Maritime Technology of the
Leiria Polytechnic Institute. Indeed, the main objective of this conference was to
explore possibilities for sustainable future growth in Business and Technology
Management. For this reason, the discussions had been around the sea and maritime
resources in order to prepare for the future development of the blue economy.
Since 2015, this research has been discussing new opportunities in order to find
other sources related with maritime field to provide a positive contribution to
Europe Economic Future (EC 2012b). Moreover, these new insights in education
and research for marine and maritime resources will led to increase the sustainable
development and will meet successfully the demands of unique marine environment
that will satisfied the dynamic and competitive management for future generations.
The European Commission publishes the blue growth (EC 2012a). Opportunities
for marine and maritime sustainable growth as a communication from the
Blue Accounting: Looking for a New Standard 29

Commission to the European Parliament, the Council, the European Economic and
Social Committee and the Committee of the Regions to stimulate the long-term
growth and jobs in the blue economy, such as
• Blue energy has the potential to enhance the efficiency of harvesting the
European energy resource, minimize land-use requirements of the power sector
and reduce the European greenhouse gas emissions (EC 2012a: 6);
• Aquaculture has the potential to impacts on wild fish stocks and water quality
due to the lack of available maritime space for aquaculture activities, compe-
tition in the global market and administrative constraints in particular con-
cerning licensing procedures (EC 2012a: 9);
• Maritime, coastal and cruise tourism has the potential due to the extraordinary
beauty and diversity of Portugal, Europe and World’s coasts, as well as, the
wide range of facilities and activities (EC 2012a: 9);
• Marine mineral resources have the potential to exploitation and mining of
minerals, other than sand and gravel, because it is financial and economically
feasible to extract minerals (EC 2012a: 10);
• Blue biotechnology has the potential to underwater world and sea biodiversity
(EC 2012a: 11).
The European Commission (EC 2012b) announces the Marine Knowledge 2020
—From seabed mapping to ocean forecasting as a communication from the
Commission to the European Parliament, the Council, the European Economic and
Social Committee and the Committee of the Regions. Later, the European
Commission (EC 2013) promotes the action plan for a Marine Strategy in the
Atlantic Area.
The Marine Knowledge 2020 (EC 2016) brings together marine data from dif-
ferent sources with the aim to help organization, public authorities and researchers to
find data and make more effective use of them to develop new products and services;
improve the understanding of how the seas behave. Also, the authors found essential
to promote the knowledge of blue accounting and looking for a new standard,
because the growing relevance of sustainability as a market influence demands that
presentation of items in the financial statements of all organizations with three dif-
ferent aspects of measurement and disclosure: (a) the nature; (b) the amount; and
(c) the reason for the classification of each item or class of items (EC 2008).
The global valuation standards detail that this new accounting standard is
developed within a conceptual framework so that elements of financial statements
are identified and treated in a manner that is universally applicable (RICS 2017a). In
furtherance to reinforce the marine knowledge, the blue accounting will provide
valuable information to the citizen, to the organization and to the society based on
the new accounting standard that identify, measure, value and report this blue
growth that is the ocean strategy with new opportunities for marine and maritime
sustainability.
The EMODnet data infrastructure (EMODnet 2018) is developed through a
stepwise approach in three major phases which are
30 R. Abreu et al.

• Phase I was the development, from year 2009 to the year 2013, of the prototype
called ur-EMODnet with coverage of a limited selection of sea basins, param-
eters and data products at low resolution;
• Phase II was the development, from the year 2013 to the year 2016, of the
prototype to an operational service with full coverage of all European seabasins,
a wider selection of parameters and medium resolution data products;
• Phase III will be works, from the year 2016 to the year 2020, towards providing
a seamless multi-resolution digital map of the entire seabed of European waters
providing highest resolution possible in areas that have been surveyed, including
topography, geology, habitats and ecosystems; accompanied by timely infor-
mation on physical, chemical and biological state of the overlying water col-
umn, as well as, the oceanographic forecasts.
Since the United Nations Conferences on the Law of the Sea held at Geneva in
1958 (UN 1958a, 1958b, 1958c, 1958d) and 1960 (UN 1961) have accentuated the
need for a new and generally acceptable Convention on the Law of the Sea. In
1992, the United Nations conclude the Law of the Sea, but only 1994 has been put
in force. This Law of the Seafocus on the territorial sea and contiguous zone, straits
used for international navigation, archipelagic states, exclusive economic zone,
continental shelf, high seas, regime of islands, protection and preservation of the
marine environment, marine scientific research, development and transfer of marine
technology, settlement of disputes and final provisions (UN 1994).
There is a long way of research, because the maritime policy promotes growth and
development strategies that exploit the strengths and address the weaknesses of each
large sea region in the European Union, from the Arctic’s climate change to the
Atlantic’s renewable energy potential, to problems of sea and ocean pollution, to
maritime safety. These new insights promoted by the World Ocean Council
(WOC) had been called in 2013 as “Ocean 2050: the Ocean Business Community and
Sustainable Seas (WOC 2013) and, in 2016, “Ocean 2030: Sustainable Development
Goals and the Ocean Business Community (WOC 2016), because of the adoption of
the “2030 Sustainable Development Agenda”, a specific goal #14 for oceans and seas.
Therefore, the European initiative on international ocean governance provides a
strong framework for improving ocean health, protecting the marine environment
and encouraging the sustainable development of the blue economy (Pearce et al.
1989). Indeed, the WOC is developing a new area of research that is the Corporate
Ocean Responsibility, due to the international business leadership alliance of the
WOC on the Ocean focus.
As resume of the paper, this first section presents an introduction that discusses
the marine knowledge over the time and shows the expectations of the society, in
general, and the citizen, in particular.
The second section presents from the literature review to the first insights of the
blue accounting that influence the legitimacy in the business and political context
that it is responsible for developing the new standard, in response to growing
market demands.
Blue Accounting: Looking for a New Standard 31

The third section explores from the literature review to the new standard of the
blue accounting explaining the concepts of the blue accounting based on the
international accounting standard (EC 2008), international financial reporting
standards (IASB 2018) and global valuation standards (RICS 2017a, IVSC 2017;
TEGoVA 2016).
The fourth section explores from the blue accounting to the analysis of the blue
economy explaining the idea of using the sea and oceans for economic gain,
because it is new of the economy which create the economic value in a sustainable
way that preserves and protects the sea’s resources and ecosystems (WWF 2016a).
The last section presents the final remarks with the discussion and the conclusion
of the blue accounting as the main concern of the organization for the growth of the
blue strategy has the main objective of relations between all stakeholders to pro-
mote the economic, social and environmental sustainability.

2 From the Literature Review to the First Insights

of the Blue Accounting

From the literature review, Hopwood (1992) defends that accounting is used from
the active construction and transformation of organizational and social truths,
associated economic truths, and, consequently, political truths. Indeed, the marine
knowledge depends on the marine policy to be efficient and effective, but the data
need to be publicly available, interoperable and reliable. Further than this and to
promote the first insights of the blue accounting to explain the main objective and to
refocus attention on the social accounting which involves the communication of
information concerning the impact of the maritime assets and its activities on the
society (Gray et al. 1996). In this multiple function, the blue accounting is based on
the creation of marine knowledge that starts with the sea and oceans as an asset with
blue economy behind (UNDESA 2014). Consequently, this knowledge can be
applied to deliver smart sustainable growth and to assess the health of the marine
ecosystem due the need to protect coastal communities (EC 2012b).
In this context, the marine asset is only possible to provide future economic
benefits associated with the asset will flow to the entity; and the fair value or cost of
the asset can be measured reliably. In the recognition and measurement of the blue
asset, the main difficulty is due the need of the entity controls the asset as a result of
past events. Indeed, there are a strong uncertainty in knowledge of the oceans and
the seas which could be reduced in order for managing future changes.
The need of the recognition and the measurement of the blue asset starts with
wasting water (Laughlin and Varangu 1991; Rodrigues et al. 2014; Santos et al.
2005). Indeed, wasting assets are defined by RICS (2017b: 1): “an asset with finite
life which, when consumed, cannot be renewed in the existing physical location in
which they occur.” Generally, the theory of value is divide between the value in
exchange and the value to the holder. But, as Fishman et al. (2007) details
32 R. Abreu et al.

“the appropriate standard of value is often dictated by circumstance, objective,

contract, operation of law or other factors.” So the main aspect is the meaning of
that standard of the value, which it is less clear and regards to the assumptions,
methodologies and techniques that must be used to value. In the case of waste
water, it is the value to an investor that added value to the owner of the water (if
exists an owner) or as purchaser.
The main question of the blue assets is that in the last examples there are no
willing buyer neither willing seller. The gap between the demand of clean sea water
and their availability is completely different when compare the dirty sea water.
Following Grey and Sadoff (2007) and Bakker (2012) the sea water balance
demands livelihood, human well-being and the ecosystem function.
Numerous insights have been made by Royal Institute of Chartered Surveyors
(RICS), based on United Kingdom, that publishes annually the valuation standards
since 1974. It is important to recognize that due to the scarcity and high dynamic of
the needs and, in accordance, with climatic change with the variability and the vul-
nerability that are both time-dependent phenomena. So, the market value is essential
to understand that following the IVS 104, paragraph 30.1 as (IVSC 2017: 170) “the
estimated amount for which an asset or liability should exchange on the valuation date
between a willing buyer and a willing seller in an arm’s length transaction, after
proper marketing and where the parties had each acted knowledgeably, prudently and
without compulsion.” This measurement could be related with clean sea water or dirty
sea water and other examples, such as: damage made by vessels, pollution for petrol
platforms, fishing fishes, and shellfish (WOC 2013, 2015a, b).
Several other insights could be based on the valuation supported by the
European Valuation Standards (TEGoVA 2016), where the most important defi-
nitions are
• Basis of value that the fundamental assumptions for assessing a maritime val-
uation to help fish farmers and fisheries product processors and other organi-
zations, public authorities, professional bodies and consumers;
• Valuation approach is the fundamental way in which, considerable marine and
maritime resources are available, the valuer considers how to determine the
value of the sea, ocean, water, and all the blue economy;
• Valuation method based one several approaches uses a valuer to assess the value
of the sea (Baltic, Black, Mediterranean and North) and the ocean (the Atlantic
and Artic Ocean) and other marine resources.
Indeed, as the European Valuation Standards (EVS) details “the valuation must
be researched, prepared and presented in writing to a professional standard.”
(TEGoVA 2016) With this contribution, it is no surprise that a huge effort demands
to save the marine and ocean resources that belong to the entire world. Also, EVS
explains that “the work undertaken must be sufficient to support the opinion of
value reported” (TEGoVA 2016) that it is related to projected ocean economic
activity and realities, risks and opportunities to share knowledge towards on the
corporate ocean responsibility.
Blue Accounting: Looking for a New Standard 33

3 From the Literature Review to the New Standard

of the Blue Accounting

The scientific understanding of the blue accounting will reduce the uncertainty of
the marine knowledge (EIU 2015; FAO 2018). The recognition of the past, present
and future forecast on the marine resources generate the strengths and weaknesses
of the accounting. Knowing that resources are certainly not unlimited and there is
an opportunity from these maritime resources to explore with human intelligence
and with energy can generate progress with properly rules and standards promoted
by organizations (Crowley 2013).
The objective of the blue accounting standard is to prescribe the accounting
treatment and the disclosure related with maritime activity. This standard will
answer
• What is a blue asset, liability, and expenses?
• How is the blue asset, liability, and expenses to be recognized?
• How is the blue asset, liability and expenses to be measured?
• Which entity develops an ocean and maritime activities?
• How ocean and maritime activities disclosure on the entity’s financial
statements?
The insights based on the accounting supported on the International Accounting
Standards (EC 2008), the most important definitions are
• A gain or loss arising on initial recognition of a blue asset at fair value less costs
to sell and from a change in fair value less costs to sell of a blue asset shall be
included in profit or loss for the period in which it arise (IAS 41, § 26)
• An unconditional government grant related to a blue asset measured at its fair
value less costs to sell shall be recognized in profit or loss when, and only when,
the government grant becomes receivable. (IAS 41, § 34).
• An understanding the data on the marine environment, because it is a valuable
asset and observations cannot be repeated can facilitate the accuracy of the
measurement. Also, long-term trends can only be distinguished from seasonal
changes.
The absence of a specific international accounting standard weakens the relia-
bility and the comparability of the data about the sea and the maritime resources of
the blue accounting. This has led the EU to publish the Recommendation 2001/453/
EC (EC 2001a) on recognition, measurement and disclosure of environmental
issues in the annual accounts and annual reports of EU companies. However, this
Recommendation follows the contents of several International Accounting
Standards (IAS) and was endorsed by the UN Working Group on International
Standards of Accounting and Reporting—which submitted a paper on environ-
mental reporting in 1998 (EC 2001a).
34 R. Abreu et al.

3.1 Recognition of the Blue Asset

In this section, the recognition of the blue asset is established to recognize and to
measure the ocean and maritime items as an asset based on the valuation process.
Blue expenditures can be considered assets if they have been made to avoid or
reduce future damage or to preserve resources, provide future economic benefits,
are intended to serve the company in a durable way and meet one of the following
two conditions: if the expenditures are related to anticipated future economic
benefits which are expected to benefit the company and which extend the life,
increase the capacity or improve the safety or efficiency of other assets owned by
the company; or if expenditures allow to reduce or avoid environmental contami-
nation that may occur as a result of the company’s future activities. For example,
pollution control or prevention facilities and machinery acquired to comply with
environmental laws and regulations and rights or similar elements acquired for
reasons associated with the impact of business activities on the environment, such
as patents and pollution rights (Kovel 2002).
When the book value of an asset considered a loss in economic benefits because
of environmental reasons, may incur expenditure to restore the future economic
benefits to its original standard of performance; in this case, expenses may be
considered as an asset, as long as the resulting book value does not exceed the
recoverable amount of the asset. In all cases, the cost of blue expenditures con-
sidered as assets must be distributed systematically over its expected life.
It may happen that certain factors of an environmental nature lead to a decrease
in the value of certain existing assets, such as the contamination of a manufacturing
site. In view of this situation, if the recoverable value of the use of the factory site
has become lower than its book value, it is necessary to correct this amount and to
charge it to the statement of profit and loss for the year; but this correction should
only be carried out if the situation of the decrease of value is lasting.

3.2 Recognition of the Blue Liability

In this section, the recognition of the blue liability is established to recognize

liabilities justified by the ocean and maritime resources. The recognition of a blue
liability is conditioned on the existence of an obligation—to avoid, to reduce or to
repair ocean and maritime damages—that can be legal or contractual and implicit
(EC 2008; RICS 2017a; IFAC 2018; IASB 2018). In other words, ocean and
maritime damage caused on oceans or seas all over the world and it is related with
an organization or citizen that in respect of which there is no legal, contractual or
implicit obligation to repair, cannot be recognized as a blue liability. As a rule, the
organization is responsible for the total of blue liability. However, it may be
responsible only for the part of the obligation attributable to itself.
Blue Accounting: Looking for a New Standard 35

Therefore, a blue liability is recognized when it is probable that an outflow of

resources embodying economic benefits will result from the settlement of a present
environmental obligation as a result of past events, and the amount at which the
settlement will take place can be measured reliably. The reliability of the assess-
ment means that a reliable estimate of the costs arising from the underlying obli-
gation can be made; in other words, if at the balance sheet date there is an obligation
whose nature is clearly defined and which is liable to result in an outflow of
resources embodying economic benefits, but of uncertain amount and date, a
technical provision should be recognized if it is possible to estimate the amount of
that obligation.
If it is not possible to make a reliable estimate of the amount of the obligation, a
contingent liability should be recognized. The contingent liabilities are not recog-
nized in the balance sheet, but in the notes to the annual accounts; is what should
occur when there is an unlikely likelihood that ocean and maritime damage will
have to be repaired in the future and that obligation depends on the occurrence of an
uncertain event. If the obligation to incur a blue expense is unlikely or insignificant,
there is no need to recognize any contingent liabilities. If it is expectable that one or
more expenses related to a blue obligation will be reimbursed by a third party, such
reimbursement will be recognized as an asset only when it is practically certain that
it will be received in case the company fulfills its obligation.
As a general rule, an expected reimbursement of a third party should not be used
as compensation for a blue liability. It should be shown separately as an asset for an
amount not exceeding the amount of its technical provision. The exception rule, the
recognition as compensation of an environmental liability, occurs when there is a
legal right to compensation that the company intends to use; in those circumstances,
where it is appropriate to recognize such compensation, the total amounts of the
liability and of the expected reimbursement must be shown in the notes to the
annual accounts.
Similarly, the expected proceeds from the sale of related assets should not be
used to offset an environmental liability; moreover, that revenue should not be taken
into account in calculating a provision, even if it is linked to the event giving rise to
the provision

3.3 Measurement of the Blue Liability

The blue liabilities are recognized when it is possible to make a reliable estimate of
expenditure to meet the underlying obligation. The amount of the liability depends
on the appropriate estimate of the expense required to settle, at any date, the present
obligation at the balance sheet date, even if the events have ceased; adequacy is
achieved by taking into account the present situation and future developments in
technical and legislative terms. If it is not possible to determine an adequate esti-
mate with sufficient reliability, then that amount should be considered as a con-
tingent liability.
36 R. Abreu et al.

In the assessment of a blue liability, the marginal direct costs of the repair effort
must be considered, the costs of remuneration and charges paid—for workers—
which are likely to be imputed to the repair process, the control obligations after
repair of the damage and the progress technology, in so far as public authorities are
likely to recommend the use of new technologies.
For blue liabilities that will not be settled in the near future, they should be
measured at the present value (as an alternative to the current cost, which is also
acceptable if the time value of the money is not relevant), if the obligation, the
amount and date are either predetermined or can be determined reliably. The
method chosen to the measurement should be disclosed in the notes. The undis-
counted estimated cash flows should be the estimated amounts expected to be paid
at the dates of settlement and should be computed using explicit assumptions
derived from the clean-up and/or remedial plan, such that a knowledgeable party
could review the computation and concur with the estimated cash flows.

3.4 Recognition of the Blue Expenses

In this section, the recognition of the blue expenses is supported on the adaptation
of the Recommendation 2001/453/EC (EC 2001a) that presents several definitions
that may help to the new accounting standard. The first example could be the
environmental or the blue expenses which “includes the costs of steps taken by an
undertaking or on its behalf by others to prevent, reduce or repair damage to the
environment which results from its operating activities. These costs include,
amongst others, the disposal and avoidance of waste, the protection of soil and of
surface water and groundwater, the protection of clean air and climate, noise
reduction, and the protection of biodiversity and landscape (EC 2001a). Only
additional identifiable costs that are primarily intended to prevent, reduce or repair
damage to the environment should be included. Costs that may influence favorably
the environment but whose primary purpose is to respond to other needs, for
instance to increase profitability, health and safety at the workplace, safe use of the
company’s products or production efficiency, should be excluded. Where it is not
possible to isolate separately the amount of the additional costs from other costs in
which it may be integrated, it can be estimated in so far as the resulting amount
fulfills the condition to be primarily intended to prevent, reduce or repair damage to
the environment».
Another definition of the Recommendation 2001/453/EC (EC 2001a) is the
“costs incurred as a result of fines, or penalties for noncompliance with environ-
mental regulation, and compensation to third parties as a result of loss or injury
caused by past environmental pollution are excluded from this definition, as dis-
cussed in paragraph 6(f) of Sect. 4 of this Annex. While related to the impact of the
company’s operations on the environment, these costs do not prevent, reduce or
repair damage to the environment”.
Blue Accounting: Looking for a New Standard 37

The recognition of blue expenses is conditioned upon the period in which they
are incurred, except in the event that such expenses meet the criteria necessary to be
recognized as an asset. Blue expenses are related to losses that occurred in a
previous year must be recorded in the year in which they are recognized and cannot
be considered as adjustments of that previous year; that is the case when envi-
ronmental expenditure relates to current or past activities or to the restoration of
environmental conditions in the state in which they were before contamination, for
example, environmental expenditure of an administrative nature; environmental
audits; debugging related to operational activities; waste treatment; and repair of
losses verified in previous years. The recognition of the expenses that an organi-
zation is required to bear in respect of the recovery of contaminated sites and the
operations of decommissioning or dismantling of fixed assets comply with the
recognition foreseen for environmental liabilities at the estimated value for total
liabilities, either totally or progressively.

4 From the Blue Accounting to the Analysis

of the Blue Economy

From the blue accounting to the analysis of the blue economy is justified on the
growing interest of the citizen and the organization for the sea and oceans that could
be emphasize in the wave energy, coastal protection, fisheries, aquaculture, waste
management and, even, the blue sky (WOC 2016a). Thus, this research is supported
on the argument that blue accounting must be used for public disclosure through
accountability as a legitimizing tool (Deegan 2002). The importance of this new
area of research will ensure accounting and financial stability to the overall
objectives of the marine knowledge.
Furthermore, the authors defend that the blue accounting is critical, especially at
this stage, in defining strengths and weakness to all the stakeholders of the seas and
maritime resources that must be always informed on an ongoing basis that it will
allow each one to take an early recognition, timely involvement and carefully
judgment of each investment and financing decision, to measure and then disclosure
this data as information to take decision based on the financial statements.
This research promotes the sustainability of these marine resources, especially,
the database systems, such as: Policy-oriented marine Environmental Research in
the Southern European Seas (PERSEUS), which helps to detect and monitor illegal
and suspicious activities at the sea and oceans (HCMR 2015). This insight gives
additional consistence that enhanced the innovative capabilities for the information
sharing, assessment of resources and assets valuation (vessels, fishes, and other
resources) as response to accounting pressures to improve its common under-
standing and public image across countries.
This research will develop the blue accounting, in general, and the measurement
issues based on Maritime and Marine issues, in particular. So, despite the strong
38 R. Abreu et al.

limitation of literature, the authors defend that the blue accounting will be very
helpful, to all the stakeholders that must be always informed and on an ongoing
basis that it will allow each one to take an early recognition, timely involvement
and carefully judgment of each investment decision. Then, transparency is strongly
encouraged by the authors who will promote more blue governance to reduce the
gaps and risks aggravated by the new challenges.
In addition, this research concerns with the financial report that gives explana-
tions to stakeholders. The authors defend that it does not exists one solution as it
appears insufficient for the level of activities involved, then public authorities have
to play a more prominent role and demand for the payment of the use of the
maritime and marine resources will became inevitable (sea surface, sea water use,
waves, salinity, gravel extraction, aquaculture, between other). At least, an objec-
tive is the understanding of the marine and maritime resources to all the society, in
general, and the citizen, in particular, because, the promotion of the accountability
will impact on the CSR principles of transparency, accountability, sustainability and
social contract based on the Annual Report (Crowther and Rayman-Bacchus 2004).
The Marine Knowledge 2020 will demand a new paradigm.
In line with the advances resulting from the Sustainability Reporting Guidelines
(GRI 2002), it is a growing practice to voluntarily publish environmental infor-
mation in the annual accounts and corporate governance reports. Despite this, the
high costs of preparing information or the information confidentiality have been
invoked as the inhibiting factors for their publication in the context of the financial
information provided by companies and support the widespread view that com-
panies support increasing environmental costs, in particular those operating in
sectors with a significant impact on the environment.
The area of the marine and maritime resources is complex and there will be
much data not in the scope of Marine. The blue accounting must rely on the
European Maritime and Fisheries Fund (EMFF), 2014–2020 as it presents Fig. 1.
Indeed, EMFF will helps fishermen in the transition to sustainable fishing, supports
coastal communities in diversifying their economies, finances projects that create
new jobs and improve quality of life along European coasts and makes it easier for
applicants to access financing (EMFF 2016).
The European Maritime and Fisheries Fund (EMFF 2016) in European Union
for 2014–2020 aims at achieving key national development priorities along with the
EU’s “Europe 2020” objectives. The six main priorities are sustainable fisheries
(26.9% of the Budget), sustainable aquaculture (21% of the Budget), implementing
the CFP with improvement of the data collection, scientific knowledge, control and
enforcement of fisheries legislation (19,1% of the Budget), marketing and pro-
cessing (17.6% of the Budget) to improve market organization, market intelligence
and consumer information in the world’s largest seafood market, Employment and
territorial cohesion (9% of the Budget) and integrated maritime policy (1.2% of the
Budget).
At the end, there are the possibility that “scientists and researchers receive
funding for studies of immediate interest to the industry, in fisheries management,
ocean management, marine environment, climate change, coastal protection, social
Blue Accounting: Looking for a New Standard 39

Fig. 1 Total European Union allocation of the European Maritime and Fisheries Fund (EMFF),
2014–2020 Source EMFF (2016)

science and maritime economy.” (EMFF 2016). Indeed, this is the starting point to
promote the research of the blue accounting.
The closing recommendation states that the term “environment” refers to the
natural physical surroundings and includes air, water, land, flora, fauna and
non-renewable resources such as fossil fuels and minerals (OECD 2011, 2014).

5 Final Remarks

As a final remark, the authors agree with WWF (2016b) that create a sustainable
green economy on land (Cato 2009) also requires a sustainable blue economy in the
sea. Visions, strategies, goals, targets and actions are urgently need for sea-based
economies. Indeed, corporate ocean responsibility should be central in the
40 R. Abreu et al.

development of the laws of the nature, because the seas and Maritimes resources are
not central on the market economy, neither in government laws and regulations.
To accomplish all of this, the blue accounting presents in this research a new
vision of well-known concepts related with sea and marine resources, but it
demands interdisciplinary research knowing that faces challenges related with the
complexity of biodiversity (Jones 2003). A clear definition of the sustainable blue
economy demands new interrelationship between vulnerability, risk and resilience
across sectors of the marine and see resources, with different scales in the context of
limited predictability.
In addition to the accounting rules, environmental aspects must be published as
they are of significance for the organization’s performance or financial situation;
even if the publication of a separate environmental report is considered—and is
welcomed by consumers—this information should be disclosed in the following
financial statements: annual (individual) management report; consolidated annual
management report; attached to the annual (individual) accounts; and annexed to
the consolidated annual accounts.
Despite these insights, there are several limitations. The first limitation is criti-
cally examined in this research and it is related with role played by several
stakeholders, such as: Portuguese Government, Politicians, Society and each citi-
zen. This is result of the role of basic skills of accounting illiteracy and innumeracy
has become ubiquitous. So, it is important to widespread accounting literacy to the
health of a modern society.
The second limitation is the existence of an enormous body of laws, regulations,
and codes that have emerged and enforced reform that are necessary, but the
challenge is to devise a true regulatory framework that enables the blue accounting
to be more resilient absorber of shocks. Probably for the Portuguese government
and European Union is now time to control the financial system, more than create
more legislation.
Finally, the third limitation is the lack of empirical evidence in this subject,
because it does not exists any similar research. So, it is better to have less evidence
that could be improved the marine knowledge than not knowing at all of the reality.
But as Riley et al. (2001: 20) defends “facts, research methods and research data do
not speak for themselves; they are interpreted by researchers and others”.
Future investigation will be necessary to provide definitions that permit the
accurate measurement of water and marine resources on a common and consistent
basis and with the blue accounting produce the access to accounting information
that will allow to make valuation, management and report explaining the basis of
value, to assess each asset and liability and then report that is suitable for specialist
applications which provides advice to accountants. However, other stakeholders
will be responsible to decide that then they need professional measurements with
not mislead, intentionally or unintentionally, information that required degree of
accuracy in terms of the final reported figures is dependent upon the site-specific
conditions and circumstances (RICS 2017a).
The authors have a future development that is the strong commitment with the
effectiveness and efficiency of the blue strategy that must respond quickly to the
Blue Accounting: Looking for a New Standard 41

needs of the society and successfully to risks involve with the maritime resources.
The use of this blue strategy demand the need of the blue accounting as funda-
mental science to develop the blue revolution that will bring a new world order.
There is a long way of the research to empower the blue accounting as an important
the measurement and disclosure approach, but it demands more research to record
and report with new methodologies and sources of data.

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