ACCA Strategic Professional · Strategic Business Leader · Reporting to stakeholders
Zentara plc, a mining company, publishes a separate report each year setting out its energy use, water consumption, community investment and employee safety record, alongside its financial statements. The board says the report is meant to show the company's accountability to stakeholders beyond shareholders. Which description best fits this report?
It is social and environmental accounting, because the company is reporting on energy, water, community and safety impacts to show accountability to a wide range of stakeholders, not just shareholders, rather than producing internal management information or a statutory financial audit report.
- AA social and environmental accounting report, extending accountability to wider stakeholdersCorrect
- BA management accounts pack prepared only for internal budgeting
- CA statutory audit report on the truth and fairness of the financial statements
- DA cash flow forecast used to support a bank loan application
Explanation
Reporting on social and environmental impacts to a broad stakeholder group is the essence of social and environmental accounting. The other options describe internal, statutory-financial or lending documents, none of which cover non-financial impacts to stakeholders.
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