Question

Spend about one page discussing [including 2-3 references] on why sustainability reporting grows in importance to accounting students and practitioners, including why auditing students should care about sustaining reporting.

Answer 1

Sustainability accounting and reporting is considered as a sub-part of the financial accounting that emphasizes on the disclosure of the non-financial aspect of the information . The aim is to reveal information (i.e non financial information) relating to the performance aspect to the various stakeholders and the interested parties of the organization.

Sustainability accounting represents those activities that have a direct impact on the society , environment and the economic performance of the organization.

Sustainability reporting is of great importance to the accounting and auditing students and practitioners because of the following reasons:

1. Sustainability reporting in the corporate arena is an important aspect in the direction of the company improving its green initiatives and its relationship with investors and clients as the stakeholders desire a transparent and accountable functioning.
2. Practioners understand the fact that the companies investors and their customers are focused on the indices and the performance reviews while they take decisions on their choice of brands . Therefore Business leaders aim at improving their standards of reporting.
3. There is a clear understanding that transparent sustainability reporting on the sustainability successes and shortcomings and the organization’s effort to improve themselves and the organisation’s clarity and sinceirty in addressing the environmental , social and governance issues.

Ernst &Young holds the view that sustainability reporting is the best practice employed by companies across the globe.

Accenture executives believe that sustainability is a way to gain competitive advantage in current global market.