Question

"General Accounting Principles" Please respond to the following:

• Should accounting include more than monetary units? Throughout your textbook additional insights into how companies are attempting to meet the challenge of measuring and reporting their contributions to society, as well as their financial results, to stockholders are referenced. Discuss why a company's stockholders might be interested in its environmental and social performance. Next, determine the critical pieces of information companies are providing and why this information is important from the perspective of the different stakeholders.

Answer 1

The primary purpose of accounting is to present information that are helpful in decision-making. Not just monetary it's all about whole information which can impact the decision of stakeholders or you can say, shareholders. As the stakeholder perspective-changing so do the companies , stakeholder want more and more information to make their various kind of decisions about the company. Nowadays companies make certain contributions to the society and humanity's well being which is also called corporate social responsibility. There are different standards of different governments for making this kind of donations. Nowadays people are much conscious about what is company doing for us or for the people. CSR is all about company's paying back to the society. Because company is doing business in the environment with the support and will of the people and sometimes because of the company the environment also diminishes badly. So company has to do something that can make up for it. Doing business right now is very changed compare to earlier times and that is why stockholders are interested in non-monetory aspects of the company.

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