Exam 26: Accounting for Corporate Social Responsibility

Disclosure of environmental information is consistent with the Positive Accounting Theory paradigm in that it seeks to reduce adverse wealth transfers.

The mission of the Global Reporting Initiative is to make sustainability reporting standard practice by providing guidance and support to organisations.

What disclosure does Companies Act require in relation to environmental impact?

AccountAbility's work is the AA1000 series of standard which is based on the following principle:

Following are reports prepared by reporting entities: I Corporate Governance Report II Corporate Social Responsibility Report III Sustainability Report IV Directors' Report V Annual Report VI Social and Environment Report Which of the following identifies all stand-alone social reports from the above list?

Discuss the motivations for entities to voluntarily report their performance with respect to social and environmental impacts.

The traditional view is that business entities are responsible for their financial performance and the impacts they have on stakeholders with whom they interact.

Which of the following statements is a valid criticism of the accounting profession with respect to its consideration of social and environmental reporting?

The qualitative characteristics identified in the Global Reporting Initiatives (GRI)Guidelines are similar with those provided in IAS 1 Presentation of Financial Statements.

Triple-bottom-line reporting has been defined as providing information about:

There is significant diversity in the approaches adopted to disclose social and environmental information.Examples of broad approaches adopted include:

Companies are required to disclose information about payments to directors and executives and the average wage level for their major classes of employees by function within the organisation.

The World Business Council for Sustainable Development formed a partnership with the World Resources Institute known as:

Freeman and Reed provide a broad definition of 'stakeholders' as follows: 'any identifiable group or individual who can affect the achievement of an organisation's objectives,or is affected by the achievement of an organisation's objectives'.

Which of the following is not considered a social benefit?

Discuss the Global Reporting Initiative's Sustainability Reporting Guidelines.

Discounting liabilities using the present value technique is not ecologically sound because:

The traditional accounting model focuses on property rights and market transactions and so tends to treat environmental goods such as air and water as being free and therefore not assets,expenses or revenues that need to be reported.

Factors that may influence perceptions of what the responsibility of an organisation should be include:

Which of the following is not a perceived limitation of financial accounting?