Businesses today face heightened expectations around their role in society and the world, with turning a profit
Question:
Businesses today face heightened expectations around their role in society and the world, with turning a profit only one of many criteria by which performance is measured. Rising in importance is the impact a company has on its stakeholders, society and even the planet. Integrated reporting which encompasses elements of traditional financial reporting, sustainability reporting and governance reporting within a single presentation, represents a growing trend that reflects these new expectations ([Deloitte Global Services Limited, 2011]
Required
What do you understand by integrated reporting and what issues should an Integrated Report embrace?
Historical cost accounting would suggest that items included in reports prepared by accountants should be supported by contracts and be capable of measurement in dollars. If accountants are to prepare Integrated Reports do you believe this 'traditional' view would be able to be implemented? Discuss in the context of measurement. Provide examples.
Do you believe the accounting profession is equipped to deal with the issues that need to be considered in an Integrated Report? Discuss, and suggest whether you believe this has implications for training accountants?
Do elements within an Integrated Report (in fact, even within the historical cost framework itself) introduce a degree of subjectivity into the accounting process? Could this affect performance measurement? How might this be addressed?
If higher degrees of subjectivity are believed to be present (or are present) in new forms of reporting will ethical behaviour (and transparency) become even more important? Discuss.
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young