Development of Triple Bottom Line Reporting and how this will Impact Financial Reporting and the Conceptual Framework

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Profit seeking firms will not spend any dollar for non-value adding processing. (Smith, Thorne and Hilton, 2006) However, even with the lack of regulation, many organisations voluntary publicly release information about their social and environmental performance. (Deegan, 2009) According to Richard (1993) finding, investors intent to choose the company investing whether it demonstrates that is a market leadership or offer above average growth or bring in strong management. However, there are few companies in Europe that can fulfill those criteria at that time. I believe that it is relatively hard to be a market leader or keeping an offer above average return for the investors. Yet companies can demonstrate that they had a strong management by providing not only accounting information report, but also their social and environmental impacts and performances report. This essay is going to discuss the development of triple bottom line reporting and how this will impact of financial reporting and the conceptual framework.

Elkington (1997) defined that triple bottom line reporting is a reporting that provides information about the economic, environmental and social performance of an entity and joined to the concept and objective of sustainable development. According to Brundtland (1987), the report on World Commission on Environment and Development, sustainable report is development that meets the needs of the present world without compromising the ability of future generation to meet their own needs. In other words, companies provide a triple bottom line or sustainable report are illustrate that they are balancing the benefit for current profitability and future generation needs.

Under the contingency perspective, company must be...

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...ance: a study of two global clothing and sports retail companies”, Accounting and Finance Association of Australia and New Zealand Annual Conference, Australia.

Keyes, B. A. and Sykes, B. (2009), “Sustainability's Triple Bottom Line”, Chief Executive, Iss. 243; pg. 43, 4 pgs

Michael, G., Richardson, A.J. and Waterhouse, J. (1992), “The management of financial disclosure: Theory and Perspectives”, The Canadian Certified General Accountants Research Foundation, xii + pp. 97.

Oliver, C. (1991), “Strategic responses to institutional processes”, Academy of Management Review, 16(1), pp. 145-79.

Richard, P. (1993), “French accent for Walworth”, Investors Chronicle, London; Vol.103, Iss 1311; Pg.14. 2pgs.

Smith, K. L., Thorne, H. and Hilton, R. W., (2006), “Management Accounting 4e Information for managing and creating value”, McGraw Hill Australia Pty Ltd, Australia.

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