Practical approaches for measuring the value of rivers on rural properties: an analysis of accounting valuation methodologies

Abstract

The text presents a study on the measurement of the value of a river as a water resource on rural properties, addressing its importance in various aspects of life, from the provision of drinking water to the sustenance of diverse ecosystems. The analysis focuses on practical accounting assessment approaches to quantify the economic, environmental, and social benefits of rivers on rural properties. Rivers, in addition to being sources of water for agricultural activities, play vital roles such as maintaining biodiversity, regulating the local climate, and providing recreation. The study highlights the need for a multidisciplinary and integrated understanding of measurement methodologies, such as valuation by comparables, discounted cash flow, and the recognition of rivers as intangible assets. The intersection between environmental and accounting legislation is also explored, emphasizing the importance of complying with regulations and accounting for environmental liabilities for sustainable water resource management. The analysis reveals the complexity of evaluating the value of a river on a rural property, but also points out opportunities to improve the management and conservation of these resources. The study concludes by emphasizing the relevance of understanding the value of rivers as intangible assets for the sustainable management of the environment and the economic and social development of rural communities. It recommends adopting sustainable agricultural practices, protecting riparian areas, and implementing ecosystem restoration projects to improve the resilience of rivers.