Accounting: Business Reporting for Decision Making 7th Edition by Jacqueline Birt Solution manual
- Twelve jurisdictions permit, rather than require, IFRS Standards: Bermuda, Cayman Islands, Guatemala, Honduras, India, Japan, Madagascar, Nicaragua, Panama, Paraguay, Suriname, Switzerland and Timor-Leste.
- One jurisdiction requires IFRS Standards for financial institutions but not listed companies: Uzbekistan.
- One jurisdiction is in process of adopting IFRS Standards in full: Thailand.
- One jurisdiction is in process of converging its national standards substantially (but not entirely) with IFRS Standards: Indonesia.
- Seven jurisdictions use national or regional standards: Bolivia, China, Egypt, India, Macao SAR, United States and Vietnam.
Countries may not yet have adopted IFRS due to the additional information process costs, and also the fear of disclosing additional information to the market which could impact on their level of competition.
Some jurisdictions (e.g. USA) also believe that some parts of IFRS may not meet their user needs and may in fact result in a loss of information for stakeholders.
1.31 Sustainability reporting
BHP Group Ltd includes a sustainability report in its annual report. What key performance indicators (KPIs) are included in this report? Explain the different stakeholders that would be interested in this information.
The key performance indicators included in this report are:
1. governance
2. people — total recordable injury frequency, high potential injuries, gender of employees, gender of senior managers, gender of board members
3. environment — greenhouse gas emissions
4. society — social investment.
The employees of the company would be interested in the safety and health measures undertaken by BHP Group Ltd. Future employees may be interested in the gender diversity of the organisation such as number of woman directors on the board of directors. Future employees may also be interested in the age and cultural diversity of the workplace. Prospective investors may be interested in the environmental aspects of the company such as climate change and energy, biodiversity and land management and water management. Society would be interested in the way the company supports and engages with the community, the way the company respects human rights and makes a positive contribution to society.
Decision-making activities
1.32 Download the report Triple bottom line reporting in Australia at www.environment.gov.au/archive/settlements/industry/finance/publications/ indicators/pubs/indicators.pdf. This guide puts forward a methodology to help entities report on their environmental impacts. The environment is one of the three pillars of TBL accounting. From the report:
a. outline the five environmental management indicators stated
b. for each of the environmental issues listed, give two examples of an environmental measure of environmental performance
c. discuss how accountants could help an entity develop a TBL report.
a. Outline the five environmental management indicators stated.
The report outlines the five environmental management indicators as:
- Environmental Management System Conformance
- Environmental Performance Improvement Process
- Integration of Environment with other Business Management Systems
- Due Diligence Process
- Environmental Liabilities.
b. For each of the environmental issues listed, give two examples of an environmental measure of environmental performance.
Energy:
- direct energy use
- indirect energy use
- initiatives to use renewable energy and increase energy efficiency.
Greenhouse:
- total greenhouse gas emissions
- initiatives aimed at reducing greenhouse gas emissions.
Water:
- total water use
- total water reused