Ch 17 Financial and Non-Financial Reporting

Question 1

What is the objective of financial reporting?

Answer 1

Provide information about the reporting entity that is useful to all
stake holders like potential investors, lenders and other creditors in making decisions about providing resources to the entity.

Question 2

List 3 dimensions of sustainability.

Answer 2

• Economic viability
• Social responsibility
• Environment responsibility

Question 3

What are the internal benefits of sustainability reporting?

Answer 3

• Increased understanding of risks and opportunities
• Emphasizing the link between financial and non-financial performance
• It provides supports in the development of long term management strategy and policy, and business
  plans
• It helps in streamlining processes, reducing costs and improving efficiency
• It helps benchmarking and assessing sustainability of performance with respect to laws, norms, codes,
  performance standards, and voluntary initiatives
• It helps avoiding being implicated in publicized environmental, social and governance failures
• It helps in comparing performance internally, and between organizations and sectors

Question 4

What are the external benefits of sustainability reporting?

Answer 4

• Mitigating – or reversing – negative environmental, social and governance impacts
• Improving reputation and brand loyalty
• Enabling external stakeholders to understand the organization’s true value, and tangible and intangible
  assets
• Demonstrating how the organization influences, and is influenced by, expectations about sustainable
  development

by removing external negative environmental impact we can Domonstrate the Improvement in reputation to Externa Stakeholder

Question 5

Define integrated report.

Answer 5

An integrated report is a concise communication about how an organization’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value in the short, medium and long term.

Question 6

What are the benefits of integrated reporting?

Answer 6

• Improved reputation
• Better decision-making
• Greater trust
• Improved governance and stewardship