Accounting for circular economy

The transition to a circular economy challenges traditional business models and financial thinking. As companies aim to minimise material use and retain value for as long as possible, new approaches are needed for measuring and reporting business performance. Conventional financial statements are no longer sufficient to reflect the sustainability or circularity of business operations—new metrics, accounting methods, and reporting tools are required. At the same time, EU regulations on circular economy and sustainability reporting are evolving rapidly. This creates pressure on businesses and financial professionals to adopt new ways of planning, monitoring, and reporting economic activities. Education in financial management plays a key role in ensuring that future professionals are equipped to meet these demands. This educational material provides an introduction to how financial and managerial accounting, as well as reporting practices, can support the shift towards a circular economy. The content is specifically aimed at: - higher education students - financial professionals - teachers and trainers - sustainability and sustainability experts The content has been developed as part of the Erasmus+ ACES Accounting for Circular Economy and Sustainability project, which promotes the integration of circular economy principles into accounting education and provides practical, digital learning materials for higher education and professional development.