Chapter 2 - Non-financial objectives - NEED TO COMPLETE

Question 1

What are the limitations of financial statements?

Answer 1

Historic, not forward looking
Accruals (profit differs from cash)
Financial information fails to give the full picture

Question 2

What is sustainability defined as?

Answer 2

Fulfilling the needs of current generations without comprimising the needs of future generations, while ensuring a balance between economic growth, environmental care and social well-being

Question 3

What three key perspectives does the GRI’s standards suggest that entities should report performance indicators so that users can monitor their performance on sustainability?

Answer 3

Economic
Environmental
Social

Question 4

What three parts are in the GRI standards?

Answer 4

Universal Standards
Sector Standards
Topic Standards

Question 5

What three universal standards must be applied by all organisations following the standards?

Answer 5

GRI 1 - Foundation - Contains the reporting principles for report content and quality, gives guidance on how to decide which topics are material and how to layout and present the sustainability report
GRI 2 - General Disclosures - Disclose contextual details of the organisation such as its size, location, supply chains, key markets, ethical principles, governance policies, key risks and stakeholder engagement
GRI 3 - Material Topics - Reports information about how an organisation manages material topics. The organisation provides a narrative explanation of why the topic is material, where the impacts occur, and how the organisation manages the impacts.

Question 6

What are the eight reporting principles fundamental to acheiving high quality sustainability reporting?

Answer 6

Accuracy
Clarity
Completeness
Timeliness
Balance
Comparability
Sustainability Context
Verifiability