Question

a)

What is the difference between sustainability reports and traditional

financial reports?

b)

Define ‘externalities’ Are they included in the calculation of accounting

profit?

c)

How does Legitimacy Theory and Stakeholder Theory help to explain

corporate managers voluntarily reporting on the social and environmental

effects of their business activities?

d)

Does information in a sustainability report meet the qualities of Relevance

and Faithful Representation as identified in the Conceptual Framework?

Answer 1

As per HOMEWORKLIB POLICY, I am answering the first question . please post rest questions seperately.

a)

S.No	Sustainability Report	Traditional Financial Reports
1	Is a report that gives a view of the economic, social and other aspects of the organisation	Is a report that records the financial aspects of the organization,
2	Records financial as well as non financial data.	Reports only financial data.
3	Is future oriented.	Is prepared based on past data.
4	Is prepared for all the stakeholders of the organization.	Is prepared primarily for the shareholers
5	Useful in judging future health of the organization	Useful in judging the financial health of the organization