Financial Accounting Environmental Report

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The purpose of this essay is to illustrate the complexity meanings of financial reporting reflect the reality and it can be the creator of social reality. Financial reporting should have an objective “truth” and “fair” view and prepare a faithful presentation for shareholders to deal with the investment. Accounting theory need to continuous change its standards or models in order to meet the future needs. This easy also discuss this statement which relate to the sustainability issues in the Australian business activities. As an innovation, sustainability reporting will combine with the traditional financial reporting to serve the stakeholders. But there is not a common standard to design the sustainability reporting, it cannot reflect the actual performance.

Financial reporting plays a key role in current world, especially in business activities. Most firms prepare their performance through their financial statements. With the development of human being, there is a big innovation happened in financial reporting. Human being start to adopt sustainability in the reporting in order to satisfy the future needs. Sustainability is an innovation theory which meets the needs of present human being without bring negative effect to the future generation (WCED 1987, P.40). After several years research work, sustainability theory not only used in environmental improvement, but also can influence on the economy, society and culture (Bob, Bill &Geoff 2002, p.189). In recent years, the theory of sustainability becomes the global issue which affects the process of accounting and practice. Especially in ethical and social fields, sustainability theory leads human being to critical thinking about the nature of “truth” and “reality” in financial statements.

Once upon a time, sustainability has most impact on the environment issues. Now, Australian firms start to adopt the sustainability theory in the business activities. In Australia, the innovative...
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