Question 1

In Australia there is a specific requirement for reporting entities in the extractive industries to disclose:

Accepted Answer

A)  information about the potential environmental impacts on protected species (as specified by state Environmental Protection Authorities) of any proposed or current extraction activities. The information is to be provided by category of protected species and verified by independent auditors. 
B)  information about the amount of restoration obligations recognised as a liability in their financial reports and the accounting methods adopted in determining the liability for restoration. 
C)  provisions for the reconstruction of environments damaged through mining processes. The disclosure should include costs measured using present value and take into account the local Environmental Protection Agency's requirements regarding the state to which the area should be returned on the completion of extraction of the minerals. 
D)  information about the environmental and social impacts of their operations, which are often in small local communities isolated from other sources of employment and revenue generation. The information to be provided includes average salary levels, training and education opportunities provided, health and safety procedures as well as disclosures about the cost of restoring the environment back to its original condition on completion of mining. 
A)  information about the potential environmental impacts on protected species (as specified by state Environmental Protection Authorities) of any proposed or current extraction activities. The information is to be provided by category of protected species and verified by independent auditors. 
B)  information about the amount of restoration obligations recognised as a liability in their financial reports and the accounting methods adopted in determining the liability for restoration. 
C)  provisions for the reconstruction of environments damaged through mining processes. The disclosure should include costs measured using present value and take into account the local Environmental Protection Agency's requirements regarding the state to which the area should be returned on the completion of extraction of the minerals. 
D)  information about the environmental and social impacts of their operations, which are often in small local communities isolated from other sources of employment and revenue generation. The information to be provided includes average salary levels, training and education opportunities provided, health and safety procedures as well as disclosures about the cost of restoring the environment back to its original condition on completion of mining.

Question 2

Which of the following statements is correct?

Accepted Answer

A)  Under Legitimacy Theory, organisations disclose information in an endeavour to appear legitimate to the societies in which they operate. 
B)  Under Legitimacy Theory, accounting disclosure policies are considered to constitute a strategy for influencing the organisation's relationships with the parties, or stakeholders, with which it interacts. 
C)  Legitimacy Theory relies on the theoretical notion of a social contract, where there is multiplicity of implicit and explicit expectations that society has about how an organisation should conduct its operations. 
D)  None of the given answers are correct. 
A)  Under Legitimacy Theory, organisations disclose information in an endeavour to appear legitimate to the societies in which they operate. 
B)  Under Legitimacy Theory, accounting disclosure policies are considered to constitute a strategy for influencing the organisation's relationships with the parties, or stakeholders, with which it interacts. 
C)  Legitimacy Theory relies on the theoretical notion of a social contract, where there is multiplicity of implicit and explicit expectations that society has about how an organisation should conduct its operations. 
D)  None of the given answers are correct.

Question 3

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

Accepted Answer

A)  the World Business Resources Institute. 
B)  the Greenhouse Gas Protocol. 
C)  Carbon Disclosure Project. 
D)  AccountAbility. 
A)  the World Business Resources Institute. 
B)  the Greenhouse Gas Protocol. 
C)  Carbon Disclosure Project. 
D)  AccountAbility.

Question 4

The Global Compact is an initiative of the:

Accepted Answer

A)  Equator Principles. 
B)  Global Reporting Initiative. 
C)  Greenhouse Gas Protocol 
D)  United Nations. 
A)  Equator Principles. 
B)  Global Reporting Initiative. 
C)  Greenhouse Gas Protocol 
D)  United Nations.

Question 5

The Minerals Council of Australia has created a code for environmental management that addresses the environmental performance and public accountability of signatories.Reasons suggested for the Council's proactive approach to developing the Code include:

Accepted Answer

A)  It was a means for the Council to enhance its position within the industry and potentially raise the fees it charges to members. 
B)  It was a means of preventing or delaying the imposition of mandatory requirements by governmental bodies. 
C)  It was a means of maintaining the perceived legitimacy of the industry in the face of public concerns over its environmental performance. 
D)  It was a means of preventing or delaying the imposition of mandatory requirements by governmental bodies and it was a means of maintaining the perceived legitimacy of the industry in the face of public concerns over its environmental performance. 
A)  It was a means for the Council to enhance its position within the industry and potentially raise the fees it charges to members. 
B)  It was a means of preventing or delaying the imposition of mandatory requirements by governmental bodies. 
C)  It was a means of maintaining the perceived legitimacy of the industry in the face of public concerns over its environmental performance. 
D)  It was a means of preventing or delaying the imposition of mandatory requirements by governmental bodies and it was a means of maintaining the perceived legitimacy of the industry in the face of public concerns over its environmental performance.

Question 6

One way in which traditional financial accounting has been able to deal in an environmentally friendly way with the measurement of effects on the environment is through the recognition of pollution permits and emission rights as assets.

Accepted Answer

A) True 
 B)False

Question 7

Global Reporting Initiative's (GRI)Sustainability Reporting Guidelines provide guidance to best practice reporting.These include reference to the following reporting principles:

Accepted Answer

A)  reliability, relevance, comparability and understandability. 
B)  inclusivity, materiality, accuracy and timeliness. 
C)  reliability, clarity, balance, comparability, accuracy and timeliness. 
D)  inclusivity, materiality, sustainability context and completeness 
A)  reliability, relevance, comparability and understandability. 
B)  inclusivity, materiality, accuracy and timeliness. 
C)  reliability, clarity, balance, comparability, accuracy and timeliness. 
D)  inclusivity, materiality, sustainability context and completeness

Question 8

In 2000,Environment Australia released a document entitled A Framework for Public Environmental Reporting: An Australian Approach,which included:

Accepted Answer

A)  identification of key stakeholders. 
B)  development of environmental performance indicators. 
C)  measurement and evaluation. 
D)  all of the given answers. 
A)  identification of key stakeholders. 
B)  development of environmental performance indicators. 
C)  measurement and evaluation. 
D)  all of the given answers.

Question 9

The Parliamentary Joint Committee on Corporations and Financial Services (PJCCF)is of the view that businesses know that it is in their own self-interest to do the 'right thing' in relation to their social and environmental performance and therefore support a regulated rather than a voluntary framework.

Accepted Answer

A) True 
 B)False

Question 10

The 'social contract' (or community licence to operate)is considered to be an implied contract constituted by the expectations that society holds about the conduct of an organisation.

Accepted Answer

A) True 
 B)False

Question 11

The advent of emissions trading schemes (such as the 'cap and trade' approach)and carbon taxes will mean that carbon emissions will be priced,typically,on the basis of tonnes of emissions.

Accepted Answer

A) True 
 B)False

Question 12

Social-responsibility reporting may be seen as having two components:

Accepted Answer

A)  responsibility reporting and societal impact accounting. 
B)  environmental reporting and employment reporting. 
C)  employment reporting and stakeholder reporting. 
D)  social reporting and environmental reporting. 
A)  responsibility reporting and societal impact accounting. 
B)  environmental reporting and employment reporting. 
C)  employment reporting and stakeholder reporting. 
D)  social reporting and environmental reporting.

Question 13

In boundary setting for sustainability reporting under the Global Reporting Initiatives (GRI)Guidelines,which of the following statements is incorrect?

Accepted Answer

A)  In parallel with defining the content of a report, an organisation must determine which entities' (e.g. subsidiaries and joint ventures) performance will be represented by the report. 
B)  The Sustainability Report Boundary should include the entities over which the reporting organisation exercises control both in and through its relationships with various entities in an upstream and downstream activity. 
C)  The Sustainability Report Boundary should include the entities over which the reporting organisation exercises significant influence both in and through its relationships with various entities in an upstream and downstream activity. 
D)  The Sustainability Report Boundary being voluntary pertains to the whole report only not the individual Performance Indicators. 
A)  In parallel with defining the content of a report, an organisation must determine which entities' (e.g. subsidiaries and joint ventures) performance will be represented by the report. 
B)  The Sustainability Report Boundary should include the entities over which the reporting organisation exercises control both in and through its relationships with various entities in an upstream and downstream activity. 
C)  The Sustainability Report Boundary should include the entities over which the reporting organisation exercises significant influence both in and through its relationships with various entities in an upstream and downstream activity. 
D)  The Sustainability Report Boundary being voluntary pertains to the whole report only not the individual Performance Indicators.

Question 14

The Shell Group of companies has developed a Social Responsibility Management system that may be described as:

Accepted Answer

A)  an integrated financial reporting system designed to encourage internal decision making and reporting to incorporate the modified historical cost system's approach to environmental and social reporting into all management systems. 
B)  an integrated means for consistently monitoring, measuring and reporting performance that reflects the underlying values of the entity in line with the expectations of society and its Statement of General Business Principles. 
C)  an integrated management system that incorporates full social costing and environmental damage reports in line with the progressive attitude to environmental and social responsibility adopted by the entity. 
D)  a management system and integrated accounting and reporting system that incorporates both social and environmental concerns within a financial framework that reflects the entity's commitment to social and environmental responsibility. 
A)  an integrated financial reporting system designed to encourage internal decision making and reporting to incorporate the modified historical cost system's approach to environmental and social reporting into all management systems. 
B)  an integrated means for consistently monitoring, measuring and reporting performance that reflects the underlying values of the entity in line with the expectations of society and its Statement of General Business Principles. 
C)  an integrated management system that incorporates full social costing and environmental damage reports in line with the progressive attitude to environmental and social responsibility adopted by the entity. 
D)  a management system and integrated accounting and reporting system that incorporates both social and environmental concerns within a financial framework that reflects the entity's commitment to social and environmental responsibility.

Question 15

The qualitative characteristics identified in the Global Reporting Initiatives (GRI)Guidelines are similar with those provided in AASB 101 Presentation of Financial Statements.

Accepted Answer

A) True 
 B)False

Question 16

Global Reporting Initiative's (GRI)Sustainability Reporting Guidelines provide guidance to best practice reporting.These include defining the report quality to contain the following qualitative attributes:

Accepted Answer

A)  reliability, relevance, comparability and understandability. 
B)  inclusivity, materiality, accuracy and timeliness. 
C)  reliability, clarity, balance, comparability, accuracy and timeliness. 
D)  inclusivity, materiality, sustainability context and completeness 
A)  reliability, relevance, comparability and understandability. 
B)  inclusivity, materiality, accuracy and timeliness. 
C)  reliability, clarity, balance, comparability, accuracy and timeliness. 
D)  inclusivity, materiality, sustainability context and completeness

Question 17

Which of the following is not considered a social benefit?

Accepted Answer

A)  education 
B)  safe products 
C)  social concern 
D)  clean water 
A)  education 
B)  safe products 
C)  social concern 
D)  clean water

Question 18

Discuss the concept of the 'community licence to operate'.

Accepted Answer

Corporate managers are increasingly reco

Question 19

What disclosure does The Corporations Law require in relation to environmental impact?

Accepted Answer

A)  An entity that is subject to any significant environmental regulation under a law of the Commonwealth, state or territory must provide details of the entity's performance in relation to the environmental regulation in the Directors' Report. 
B)  An entity that has a licensing arrangement with an Environmental Protection Agency must disclose the terms and nature of the agreement and details of its compliance with the agreement in the management discussion section of the annual report. 
C)  An entity that emits any of the substances on the list of 90 such substances measured in the National Pollution Index is required to report the verified measurement of its emission levels of those substances in the Directors' Report. 
D)  An entity that has a licensing arrangement with an Environmental Protection Agency must disclose the terms and nature of the agreement and details of its compliance with the agreement in the management discussion section of the annual report; and an entity that emits any of the substances on the list of 90 such substances measured in the National Pollution Index is required to report the verified measurement of its emission levels of those substances in the Directors' Report. 
A)  An entity that is subject to any significant environmental regulation under a law of the Commonwealth, state or territory must provide details of the entity's performance in relation to the environmental regulation in the Directors' Report. 
B)  An entity that has a licensing arrangement with an Environmental Protection Agency must disclose the terms and nature of the agreement and details of its compliance with the agreement in the management discussion section of the annual report. 
C)  An entity that emits any of the substances on the list of 90 such substances measured in the National Pollution Index is required to report the verified measurement of its emission levels of those substances in the Directors' Report. 
D)  An entity that has a licensing arrangement with an Environmental Protection Agency must disclose the terms and nature of the agreement and details of its compliance with the agreement in the management discussion section of the annual report; and an entity that emits any of the substances on the list of 90 such substances measured in the National Pollution Index is required to report the verified measurement of its emission levels of those substances in the Directors' Report.

Question 20

What are the social and financial reporting implications of discounting environmental related liabilities?

Accepted Answer

While discounting makes good economic se

Exam 34: Accounting for Corporate Social Responsibility

In Australia there is a specific requirement for reporting entities in the extractive industries to disclose:

Which of the following statements is correct?

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

The Global Compact is an initiative of the:

The Minerals Council of Australia has created a code for environmental management that addresses the environmental performance and public accountability of signatories.Reasons suggested for the Council's proactive approach to developing the Code include:

One way in which traditional financial accounting has been able to deal in an environmentally friendly way with the measurement of effects on the environment is through the recognition of pollution permits and emission rights as assets.

Global Reporting Initiative's (GRI)Sustainability Reporting Guidelines provide guidance to best practice reporting.These include reference to the following reporting principles:

In 2000,Environment Australia released a document entitled A Framework for Public Environmental Reporting: An Australian Approach,which included:

The 'social contract' (or community licence to operate)is considered to be an implied contract constituted by the expectations that society holds about the conduct of an organisation.

The advent of emissions trading schemes (such as the 'cap and trade' approach)and carbon taxes will mean that carbon emissions will be priced,typically,on the basis of tonnes of emissions.

Social-responsibility reporting may be seen as having two components:

In boundary setting for sustainability reporting under the Global Reporting Initiatives (GRI)Guidelines,which of the following statements is incorrect?

The Shell Group of companies has developed a Social Responsibility Management system that may be described as:

The qualitative characteristics identified in the Global Reporting Initiatives (GRI)Guidelines are similar with those provided in AASB 101 Presentation of Financial Statements.

Global Reporting Initiative's (GRI)Sustainability Reporting Guidelines provide guidance to best practice reporting.These include defining the report quality to contain the following qualitative attributes:

Which of the following is not considered a social benefit?

Discuss the concept of the 'community licence to operate'.

What disclosure does The Corporations Law require in relation to environmental impact?

What are the social and financial reporting implications of discounting environmental related liabilities?

An Overview of the Australian External Reporting Environment

The Conceptual Framework of Accounting and Its Relevance to Financial Reporting

Theories of Accounting

An Overview of Accounting for Assets

Depreciation of Property, plant and Equipment

Revaluations and Impairment Testing of Non-Current Assets

Inventory

Accounting for Intangibles

Accounting for Heritage Assets and Biological Assets

An Overview of Accounting for Liabilities

Accounting for Leases

Accounting for Employee Benefits

Share Capital and Reserves

Accounting for Financial Instruments

Revenue Recognition Issues

The Statement of Comprehensive Income and Statement of Changes in Equity

Accounting for Share-Based Payments

Accounting for Income Taxes

The Statement of Cash Flows

Accounting for the Extractive Industries

Accounting for General Insurance Contracts

Accounting for Superannuation Plans

Events Occurring After the End of the Reporting Period

Segment Reporting

Related Party Disclosures

Earnings Per Share

Accounting for Group Structures

Further Consolidation Issues I: Accounting for Intragroup Transactions

Further Consolidation Issues II: Accounting for Non-Controlling Interests

Further Consolidation Issues IV: Accounting for Changes in the Degree of Ownership of a Subsidiary

Accounting for Equity Investments,including Investments in Associates and Joint Arrangements

Accounting for Foreign Currency Transactions

Translating the Financial Statements of Foreign Operations

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