This is a paper that is focusing on full-cost accounting meeting ICAEW set out criteria. The paper also provides additional information on the topic case scenario to use in the assignment.

Full-cost accounting meeting ICAEW set out criteria

Question 2

The ICAEW has written a report on environmental reporting and here are a few of the key points;
The wide and varied range of potential environmental issues and the complexity of many modern businesses can make it difficult for companies to be aware of everything. That could be relevant for their businesses which may need to be reported.

These issues can be either systematic or non-systematic and include not only those from within the company’s own boundaries. But also those relating to its suppliers and customers. Sound internal information systems are central to managing this effectively and their quality can be enhanced by the adoption of a formal environmental management system. This can be supplemented in several ways. Such as through the creation of a specialist function within the organisation which is responsible for monitoring and helping to manage the environment related aspects of its business. Also, regular reference to good sources of external information, and the engagement as needed of expert external advisers.

Full-cost accounting meeting ICAEW set out criteria

Companies can be proactive and make positive use of their annual reports to inform not only investors. But also other stakeholders who could be important to the business. The potential range of stakeholders is broad and diverse and may include parties which, if not carefully managed, could create problems for the business. A company can take a structured approach. This by identifying its main stakeholders and evaluating their relative importance and respective information needs. Then assessing how far these can be met without compromising other considerations such as commercial confidentiality.

Standard good practice risk management techniques are as relevant in dealing with environmental issues as for other aspects of a company’s business. These can help to ensure that no significant risks are inadvertently overlooked and that those which are identified are then appropriately managed. This includes ensuring that the company captures adequate environmental data, of granularity and reliability. Also, through its accounting and other information systems. There are several items that preparers need to consider in order to avoid omitting anything significant and users should look for these in annual reports. They include disclosures on both the company’s own environmental policies. Also, practices and indicators of its resulting performance, particularly in key areas such as climate change. There are also independent environmental and sustainability rating and benchmarking systems. Which users can refer to supplement their own research.

Requirements

Required;
a)      In respect of the above statement do you think that ideas such as full-cost accounting (Triple Bottom Line) meet the criteria set out by the ICAEW (institute of charted accountants In England & wales)?                                                                            (7 marks)

b)      Do you think that Social and Environmental Reporting through initiatives like GRI (Global Reporting Initiative) provide an appropriate lever for change or are they tools for organisations to “greenwash” their activities?                                               (8 marks)

c)       If you were an accountant asks to “massage” a report to make it look greener what could you do? Use an ethical decision-making model to help you formulate your answer.                                                                  (10marks)

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