Proposals on reforming the fundamental principles of the enterprise, joint-stock company and social interest through environmental accounting (Part 2)
Importance This article examines the accounting and law issues in connection with exacerbating environmental and social imperatives. It addresses the genesis and development of accounting and analyzes the IAS/IFRS conceptual framework.  Objectives The aim of the study is to offer theoretical and conceptual bases of accounting reform to establish a new accounting environmental law that would ratify a new vision of capital and profit concepts for environmental and social management.  Methods The study employs scientific methods of research, i.e. analysis, synthesis, generalization, abstraction, historical and logical methods, comparison and the chronological analysis.  Results We propose a new environmental accounting model based on the strong sustainability approach. It systematizes various suggestions on corporate governance reform and develops a new extended theory of shareholders.  Conclusions It is crucial to reform the corporate law and accounting practices. The CARE model we offer is a transposition of the accounting model of traditional capitalism to the natural and human capital. The model rests on the observations of almost all economists, showing that all three capitals are necessary for the work of any enterprise. We conclude that in this case the innovative market economy remains, but on condition that the three capitals are stable, rather than one. The model can be regarded as an embodiment of true capitalism. In the modern era, when new challenges to environmental and human security emerge, it is important to protect and preserve indispensable conditions for the existence of mankind.