The search for a sustainable approach to accountancy

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. A key part of the global advance towards sustainability involves the need to account and report on the implementation and application of the sustainability practices of the entities. Which of the following goals are not normally identified as relating to sustainable development?

  2. Decisions are made by businesses and governments, which are seldom based purely on financial information alone. They are based on an assessment of risk and opportunity using information on a wide variety of immediate and future issues. How does the process behind sustainability reporting assist the reporting entity?

  3. Increased transparency can lead to better decision-making. There is now a greater demand for sustainability information as demonstrated by the emergence of new reporting initiatives. An example of these initiatives is the United Nations Global Compact (UNGC). Which of the following statements regarding UNGC is correct?

  4. The Climate Disclosure Standards Board (CDSB) is an international consortium of business and environmental NGOs. The CDSB and the IIRC have signed a joint statement of collaboration. Further, the IIRC has created the Corporate Reporting Dialogue (CRD). What is the main purpose and advantage of the CRD?

  5. In the United Kingdom, the Government published new regulations for the strategic report and directors report in 2013. The Regulations resulted in an amendment to existing company law requirements. The main change was the introduction of a requirement for certain entities to prepare a strategic report as part of their annual report. What was the Strategic Report intended to replace?

  6. The International Integrated Reporting Council (IIRC) framework is a principles-based framework aimed at encouraging businesses to explain and disclose better how they create value. How does the Framework contribute to sustainability reporting?

  7. The Global Reporting Initiative (GRI) is an international not-for-profit organisation, which produces Sustainability Reporting Guidelines. The guidelines are currently in their fourth generation. The GRI Sustainability Reporting Framework provides guidance for organisations to voluntarily report on their environmental, social, and governance performance. How are the guidelines of GRI developed?

  8. There were over 8,000 companies and a total of over 13,000 entities signed up to the UNGC initiative. BP reports against the principles of UNGC. Which of the following is not one of the principles used by BP in compliance with the UNGC initiative?

  9. There are developments worldwide in terms of sustainability reporting. The US Sustainability Accounting Standards Board (SASB) has issued provisional standards for various industries. The standards are a series of eight industry-related standards. What is the main focus area for the above standards?

  10. GRI has published a first Analysis Paper resulting from its Reporting 2025 Project that is designed to promote an international discussion about the purpose of sustainability reporting and disclosures looking ahead to 2025. Which of the following was not one of the insights gained through the project?