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ACCA Strategic Professional · Advanced Performance Management · Sustainability

Tandrel Ltd publishes a sustainability report. A reviewer notes that it describes only positive achievements, such as new recycling schemes, and omits a significant rise in carbon emissions. Which reporting quality is most directly breached?

The report breaches balance. Sustainability reporting should present both favourable and unfavourable performance. Highlighting recycling successes while omitting a significant rise in carbon emissions gives users a one-sided view, whatever the report's timing, comparatives or assurance status.

  1. ABalance, because the report presents a one-sided view of performanceCorrect
  2. BComparability, because prior-year data are not shown
  3. CTimeliness, because the report was published late
  4. DVerifiability, because no reference to assurance is made

Explanation

Balance requires that both positive and negative aspects of performance are reported so users can make a reasoned assessment. Omitting a material rise in emissions while highlighting only achievements gives a one-sided picture. The scenario gives no information about comparatives, timing or assurance.

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