Financial Accounting Assignment

Running head: FINANCIAL ACCOUNTING ASSIGNMENT
Financial accounting assignment
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FINANCIAL ACCOUNTING ASSIGNMENT
Table of Contents
Answer to requirement a)................................................................................................................2
Explaining the concept of sustainability, sustainability reporting and integrated reporting:..........2
Explaining the sustainability reporting guidelines by emphasizing on GRI:..................................3
Discussing the purpose of sustainability reporting to the Malaysian companies:...........................4
Answer to requirement b)................................................................................................................6
Discussion of the corporate social information in the corporate social responsibility report of the
companies:.......................................................................................................................................6
Nature of business of Coca Cola:....................................................................................................6
Summary of corporate social information such as environment, society and safety:.....................6
Nature of business of Pepsi:............................................................................................................7
Summary of corporate social information such as environment, society and safety:.....................8
Nature of business of F and N beverages:.......................................................................................8
Summary of corporate social information such as environment, society and safety:.....................9
Answer to requirement c)................................................................................................................9
Advantages of disclosing the corporate information are as follows:...............................................9
Disadvantages of disclosing the corporate information are as follows:........................................13
References:....................................................................................................................................15

FINANCIAL ACCOUNTING ASSIGNMENT
Answer to requirement a)
Explaining the concept of sustainability, sustainability reporting and integrated reporting:
Sustainability is considered as the normative concept that embodies standard of behavior
and judgment so that the organization is respected as the human community that seeks to satisfy
the needs of wellbeing and survival. Sustainability is about the coordination and management of
social, environmental, and economic concerns to ensure that the organization is acting
responsibly in an ethical manner. In a broader contemporary sustainability treatise, an important
role is played by social sustainability. Moreover, the financial performance of the company is
significantly influenced by the sustainability performance that helps in supporting the decisions
of the company to improve the performance of sustainable managing. Improving the
sustainability reporting is as important as improving the financial performance and it is evident
from some findings that the sustainability performance has a contribution to the financial
performance of the company (Abernathy et al., 2017).
In recent years, sustainability reporting has becoming increasingly important concept for
the companies. The approach of sustainability reporting helps in integrating and creating balance
between the between the economic, social and environmental dimensions of performance of
business and these three dimensions forms the pillars of sustainability report. There are many
factors that contribute to this low percentage of sustainability reporting in countries like
Malaysia and these include difficulty in measuring performance, high cost of reporting, lack of
awareness, difficulty in making the company to become proactive in sustainability reporting and
assumptions of company regarding the cost of reporting, inconsistency and poor performance of
companies (De Villiers et al., 2018).

FINANCIAL ACCOUNTING ASSIGNMENT
Integrated reporting is the presentation and incorporation of the financial and non-
financial performance of the company in a single financial report. It is a concise communication
about the governance, strategy, prospects and performance of the company that helps in creation
of short and long-term value to the company (Ahmad et al., 2017). Such report intends to provide
greater context on the non-financial data such as the parameters of the social, economic and
governance performance and how the strategy of sustainability is embedded in the core strategy
of business. The concept of integrated report is challenging in light of the established fact that
the sustainability reporting has been adopted by very few countries across the world.
Explaining the sustainability reporting guidelines by emphasizing on GRI:
Sustainability report is a report prepared by organization disclosing their performance in
terms of social, environmental and economic dimensions and thereby providing precise and
balanced representation of sustainability performance that incorporates both negative and
positive contributions. The branding of sustainability report is done by the companies for
reflecting the attributes of company for the development of business strategies and success and
helps in creating the opportunities. Such report outlines the activities pertaining to the corporate
social responsibility of the companies and is regarded as the dynamic component for
communicating sustainability performance to the stakeholders. Sustainability reporting is the
extension of the corporate social responsibility according to the Global reporting initiatives that
reflects the economic and environmental dimensions, rather than disclosing only social
responsibilities. Such initiatives offers the company with competitive guidelines on sustainability