Question 4 (25 marks)

a) "Sustainability issues have an increasing influence on the business environment and, in turn, on the role of accountants. A need to measurement and report on social and environmental performance and to consider how greenhouse gas emissions are generated by entity impacts on its information systems and reporting practice" (Rankin et al. 2018, p. 315).

Evaluate the above statement and critically discuss the impacts of sustainability issues on accounting reporting practice and the accounting profession.

(13 marks)

b) Professional judgement plays an important role in financial reporting. Identify four areas in which the accountant preparing financial statements must make professional judgements that will affect the content of the statements. You are required to indicate at least two affected accounts in each area you identified.

(12 marks)