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The accountants will have a central role in saving the

planet critically discuss


Hints: Students should analyse the academic journals, professional (CIMA & ACCA)
literature and other sources such as the economist and good quality newspapers to
support your discussion.
Student should NOT: simply assume the title of this essay is a fact, it is not, this is a
statement. The critical analysis is KEY to this essay.
You must use the following article within your work as well as others which you
have found throughout your own research. Failure to do so will severely reduce
your grade. We expect a minimum of five academic journals (CIMA & ACCA
literature do not count as academic journals) articles to be used plus other
sources mentioned above, the other articles should not be simply ones you have
taken from this article.
Deegan, Craig (2013), The accountants will have a central role in saving the planet
really? A reflection on green accounting and green eyeshades twenty years later.
Critical perspectives on Accounting 24(6) 448-458.
Introduction
Main Body

What is traditional Financial reporting framework being currently used?


- Share Holders
- Lender
- Refer debit/credit
- Accounting term
- Financial performance of the company
- No comment
- Business entity concept
What is traditional reporting framework relevant for greater corporate
accountability beyond investors lenders and creditors
What is currently been done to address the issues of social and
environmental problems.
- How to overcome the problem
- Find out weaknesses

Conclusion
Financial reporting frameworks currently being done
- Whether our accountants just looking at accounting performance or
beyond the performance

The purpose of the financial statements is to present a genuine and reasonable


perspective of a substance's monetary execution, money related position, changes
in net resources and money streams that is valuable to an extensive variety of
clients. Money related proclamations additionally demonstrate the aftereffects of
the administration, and the responsibility of administration for the assets depended
to it. Accordingly, they are a vital method for exhibiting how general society
segment meets its financial management responsibilities.
Annual financial statements must consist of
(a) a balance sheet (statement of financial position);
(b) a statement of changes in equity;
(c) an income statement (statement of financial performance);
(d) a cash flow statement;
(e) an appropriation statement;
(f) notes to the appropriation statement and annual financial statement; and
(g) such other statements as may be determined by the National Treasury.
The traditional financial reporting system is utilized by present and potential
speculators, moneylenders and different banks t to help them settle on choices
about purchasing, offering or holding value or obligation instruments and giving or
settling credits or different manifestations of credit.
The primary clients need data about the assets of the substance not just to evaluate
an element's prospects for future net money inflows additionally how viably and
effectively administration has released their obligations to utilize the substance's
current assets.
Data about the nature and measures of a reporting element's monetary assets and
cases that are accounted for in the financial statement helps clients to evaluate that
substance's money related qualities and shortcomings; to survey liquidity and
solvency, and its need and capacity to get financing. Data about the cases and
installment necessities supports clients to foresee how future money streams will be
appropriated among those with a case on the reporting substance.
Money related data is valuable when it is pertinent and speaks to steadfastly what it
implies to speak to. The value of monetary data is improved on the off chance that
it is practically identical, evident, auspicious and reasonable.

Data around a reporting element is more valuable on the off chance that it can be
contrasted and a comparable data about different substances and with comparative
data about the same substance for an alternate period or an alternate date.
Equivalence empowers clients to distinguish and comprehend similitudes in, and
contrasts among, things.
Evidence serves to guarantee clients that data speaks to steadfastly the financial
phenomena it indicates to speak to. Undeniable nature implies that distinctive
learned and autonomous eyewitnesses could achieve accord, albeit not so much
finish understanding, that a specific delineation is a devoted representation.
Timeliness implies that data is accessible to chiefs in time to be fit for impacting
their choices.
Grouping, portraying and showing data obviously and briefly makes it reasonable.
While some phenomena are naturally unpredictable and can't be made
straightforward, to reject such data would make monetary reports deficient and
conceivably deceptive. Financial reports are prepared for clients who have a
sensible information of business and monetary exercises and who survey and
dissect the data with persistence.
Money related proclamations depict the monetary impacts of exchanges and
different occasions by gathering them into wide classes as per their financial
attributes. These wide classes are termed the components of money related
explanations.

The elements directly related to financial position (balance sheet) are:

Assets - An advantage is an asset controlled by the element as a


consequence of past occasions and from which future financial profits
are relied upon to stream to the substance.

Liabilities - A liability is a present commitment of the substance


emerging from past occasions, the settlement of which is relied upon
to result in an outpouring from the element of assets encapsulating
financial profits.

Equity - Equity is the leftover enthusiasm for the benefits of the


element in the wake of deducting all its liabilities.

The elements directly related to performance (income statement) are:

Income - Income is increments in financial profits amid the accounting period


as inflows or improvements of benefits or declines of liabilities that outcome
in expansions in value, other than those identifying with commitments from
value members.

Expenses - Expenses are reductions in financial profits amid the accounting


period as outpourings or exhaustions of advantages or incurrences of
liabilities that outcome in abatements in value, other than those identifying
with circulations to value members.

The income proclamation reflects both salary explanation components and a few
progressions in monetary record components.
According to Critical Perspectives on Accounting by Deegan, Craig (2013), including
a couple of new "charges and credits" inside a conventional money related
accounting system can't make it ecological accounting. The monetary reporting, in
view of its standard system & accounting principles, can't viably address social and
ecological concerns. On the other hand, it is required to be tended to later on eras.
One perspective that must be tended to is the huge expense of an unnatural
weather change on the world economy. Early activity to check this will be more
financially savvy than deferred or no activity whatsoever. Environmental change
reasons market disappointments which represent a test for financial aspects. At the
point when the computed expense of an Earth-wide temperature boost is not
appropriately expressed, it will make the risk look little and won't call for activity.
Subsequently the individuals who see the monetary reports won't see an unnatural
weather change as a risk.
An alternate normal for monetary reporting is it must be certain, that is it
demonstrates the genuine picture it ought to. Accountants experience issues in
speaking to irrefutability on the grounds that they can't recognize the outside
elements that add to it in light of the fact that they are not prepared to do as such.
In this way social and natural issues, for example, environmental change, are not
saw by individuals. Accordingly accounting traditions need to change before
accountants get to be responsible for social and ecological variables of an
organization's execution.
Accountants are not prepared to move far from charges and credits to adjust to
changes to environment and advances. The accounting customs have not changed
in the most recent 20 years and may not change in the following 20 years.
Financial reporting essentially gives data about the money related execution of an
association to those intrigued by that association. Yet it is so inflexible it couldn't be
possible consider social and ecological consequences for its execution. In spite of
calls to consider changes in social and environment in monetary reporting, it will
keep on being what it is really going after more years to come.

Consideration has now turned to Integrated Reporting (IR), that is, append
Sustainability Reports to Financial Reports. With IR, associations can cover their
responsibility as far as different non-financial parts of their operations.
Corporate reporting can't be changed overnight or by people. It is dependent upon
accounting standard-setters, IASB & FASB to change corporate reporting. And
accounting students ought to be taught to concentrate on responsibility and
investigate how associations can be more responsible.

Citing from Jane Gleeson-White in her new book, "Six Capitals', accountants were
going to save the planet. It was "to investigate the difficulties and open doors for
the calling in the zone of corporate manageability". This new corporate reporting
system contained six capitals notwithstanding the customary corporate reporting
structure on budgetary and produced capital. The six capitals were money related,
produced, scholarly, human, social and relationship and characteristic capital.

The traditional financial reporting concentrated on measuring measure of


substantial products created and sold. Today, we are in the data age and companies
must consider past substantial products, that is, immaterial merchandise, for
example, information and information. There is a shift in standard. The emphasis is
presently on the individuals and programming, called human capital & intelligent
capital in accounting terms. Organizations are presently looking into non-money
related or supportability reporting. Accountants are characterizing two all the more
new territories of worth or "capitals": "social and relationship capital" and "regular
capital".
It is clear that there is a requirement for another type of business reporting in the
21st century by considering the impalpable abundance of the Information age and
the abundance of the general public and nature. Anyhow an incorporated reporting
structure is not all that straight forward. It is a reporting of worth over the long haul.
A coordinated report must be clear and reasonable to people in general, not
confound them. It must demonstrate the association as a progressing business. On
the other hand, the current reports are intricate and extensive and concentrate on
the money related exchanges of the earlier year. An Integrated Report ought to be
critical to esteem creation.
Value creation is the quality a business makes as far as expansions, reductions and
change of the six capitals. The six capitals interface with the outside environment
and yield six separate floods of capital. This gets to be entangled when the business

does produce substantial items as well as results impacts on the capitals such
expanding worker aptitudes (build human capital, diminish money related capital)
or discharging squanders, for example, carbon dioxide that decreases common
capital. It is this story that the coordinated report ought to tell.
In June 2013, Pricewaterhouse-Coopers evaluated 50 pilot organization incorporated
reports and observed that it had far to go before the truth of intergrated reports can
get up to speed with the desire.
Incorporated reporting may be the arrangement however the length of it is taking
into account return on monetary capital at the expense of different capitals, this
may not be achievable.
In coupled with this new accounting standard, another era of enterprises is being
made that has taken the thought of corporate social and environment obligation
further. These enterprises are lawfully bound to make a material positive
commitment to society and environment.