Accounting Theory Assignment Requirment 08.12.22

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Southern New Hampshire University *

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5325

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Accounting

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Nov 24, 2024

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Accounting Theory – Coursework Brief: The International Sustainability Standards Board (ISSB) has proposed sustainability disclosure standards based on the recommendations of the Taskforce on Climate-related Financial Disclosures and the Sustainability Accounting Standards Board (SASB) as well as the Integrated Reporting Framework. The sustainability accounting standard setting process may or may not produce standards that prompt more sustainable business practices. In 2022, the UK government introduced fully mandatory climate-related financial disclosure requirements across the UK economy through implementing the recommendations of the Taskforce on Climate-related Financial Disclosures and now these standards are being promoted internationally through the ISSB as mentioned above. Against this background: Essay question: “ Evaluate the bases for making climate-related financial disclosure requirements mandatory.” Content requirements: In your evaluation, please comment on:  The word limit is 2000 (+10%) words which excludes references and tables/words in figures.  Are voluntary and mandated standards likely to have different economic consequences? (Use agency theory, PAT or other appropriate theories and empirical evidence to back up your points.)  Should these standards be investor focussed?  What does empirical evidence indicate to date? (Refer to evidence presented in academic articles and be critical.)  Could anything derail the standard setting process? (Theories of regulation 1) Public Interest theory & 2) Special Interest and Capture Theory  Please consider both the supply and demand side of sustainability accounting disclosure, as well as financial reporting, in your discussion, i.e. both companies that prepare the reports and investors/stakeholders who read/use the reports.  Please make use of subheadings as you see fit. Referencing:  Please use the Harvard system for referencing. Marking Criteria:  Please make sure all the points and requirements are met as per the marking criteria below. Some useful links/resources: ( Please feel free to use any other material you find useful )  https://www.youtube.com/watch?v=VsMnvH2O6Y0  https://www.investorschronicle.co.uk/podcasts/2021/02/25/baruch-lev-financial-reports- are-irrelevant/  Ramanna, K. (2015). Thin political markets: The soft underbelly of capitalism. California Management Review, 57(2), 5-19.  Theories of regulation: 1) Public Interest theory & 2) Special Interest and Capture Theory

 https://www.legislation.gov.uk/ukpga/2006/46/contents  https://eco-act.com/resources/ - This website provides a guide to all related frameworks  https://www.accountingforsustainability.org/en/knowledge- hub/videos/investors-climate-disclosure.html -This video shows what investors want from disclosure  UK Government Environmental Reporting Guidelines  Flower, J. (2015). The International Integrated Reporting Council: A story of failure . Critical Perspectives on Accounting, 1-17.  INTERNATIONAL INTEGRATED REPORTING FRAMEWORK  The Big eBook of Sustainability Reporting Frameworks - EN.pdf

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