Financial Information Analysis about Carbon Emission Disclosures

Running Head: ADVANCED ACCOUNTING ASSIGNMENT
ADVANCED ACCOUNTING ASSIGNMENT
Name of the Student
Name of the University
Author Note

1ADVANCED ACCOUNTING ASSIGNMENT
Table of Contents
Answer to Question 4.................................................................................................................2
Financial Information Analysis about Carbon Emission Disclosures................................2
Answer to 4.1.........................................................................................................................4
Accounting Measurement Consistency..............................................................................4
Answer to 4.2.........................................................................................................................4
Comparison of European Companies with Australian Listed Companies.........................4
Answer to Question 5.................................................................................................................6
Findings from Analysis......................................................................................................6
Reference....................................................................................................................................8

2ADVANCED ACCOUNTING ASSIGNMENT
Answer to Question 4
Financial Information Analysis about Carbon Emission Disclosures
The current situation of the business situations makes stakeholders of the company
observe the performance, from not from only financial performance perspective but also from
the non-financial perspective. The stakeholder possesses or controls the abilities for
influencing the consumption of the economic resources of the company (Griffin, Lont and
Sun 2017). Therefore, company makes carbon emission disclosures in the financial statement
for demonstrating that how much they are concerned as well as responsible for it. However,
this disclosure is not mandatory but it is voluntary. Moreover, the trend is increasing as
voluntary disclosures made by the companies are improving the quality of financial statement
so that the potential investor can invest in the company (Aph.gov.au. 2019). Following are
the financial information disclosures about carbon emission allowances from EU ETS
participating companies:
Outokumpu Oyj
Outokumpu Oyz is the international group of companies, whose headquarter is in
Finland. It is the largest stainless steel producer in Europe as well as America. The companies
have seven active sites, operating under ETS EU. During 2018, pre verified carbon-dioxide
emission was around 1.0 million tonnes ETS. Moreover, Outokumpu applied free emission
allowance according to efficiency based benchmarks and historical activity, during 2013-
2020. The company manages emission allowance with the objective of securing and
optimizing cost of compliance for current trading period. The power market price is based on
partially based on the price of carbon emission because of the fact that the processes of
energy intensive uses fuels and power. Hence, indirect exposure to emission price is desirable
for company (Outokumpu.com. 2019).