Contemporary Accounting Practice: Analysis of Global Reporting Initiative by Wesfarmers and BHP Billiton Limited

Running head: CONTEMPORARY ACCOUNTING PRACTICE
Contemporary accounting practice
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Author Note

CONTEMPORARY ACCOUNTING PRACTICE
Introduction:
The report is prepared for analyzing the Global Reporting Initiative taken by two
companies that is listed on Australian stock exchange. Two companies that are selected for
the evaluation of non financial or sustainability reporting are Wesfarmers limited and BHP
Billiton Limited. Wesfarmers limited is a supermarket chain having a diversified business
portfolio operating in hardware, supermarket, departmental stores, energy distribution, gas
processing, chemicals, safety products and coal mining. BHP Billiton is a leading resource
company of the world based in Melbourne, Australia and is engaged in processing and
extraction of oil, gas and minerals. The purpose of providing integrated reporting is explained
in context of the chosen companies. Differences and similarities between the sustainability
reporting of each company is explained by critical evaluation in terms of quality of
information, whether the needs of stakeholders are met by the information presented in the
report (Sethi et al. 2017). Furthermore, analysis has been done whether the sustainability
report is consistent with the frameworks or the relevant applicable standards.
Describing the purpose of each company providing GRI (Global Reporting Initiative)
The sustainability report of BHP Billiton Limited is prepared by aligning with the
lines of global reporting so that it provides support to all areas of organization. Assessment of
materiality is done in accordance with the principles of Global reporting initiative that helps
in defining the content of report through cycle of prioritization, identification, review and
validation. Sustainability strategies are informed with the help of materiality assessment that
helps in ensuring that stakeholders are provided with the transparent coverage of key topics.
Strategy of organization and value of stakeholders are created by responding and identifying
of the key sustainability issues. The criterion that is used for basis of sustainability reporting
includes the standards of GRI that is published by GRI (Alonso et al. 2014).

CONTEMPORARY ACCOUNTING PRACTICE
The sustainability report of Wesfarmers limited is prepared according to the standard
of Global reporting initiative. Purpose of adopting such global reporting standard is to
provide stakeholders with transparent information about opportunities and sustainability
risks. Performance of each of materiality issues are published and measured in the
sustainability report of Wesfarmers limited. Sustainability at Wesfarmers is about managing
and understanding the ways activities impact the environment and community for ensuring
value creation in future. At Wesfarmers, sustainability is board level, critical, strategic issue
and governance and the materiality process helps in guiding the content of report. The
significant environmental and social impact that influences the decision and assessment of
stakeholders is reflected in materiality issues.
Explanation of key stakeholders having an interest in the group:
BHP Billiton being a global company is required to interact with range of
stakeholders that comprise of community based organization, business partners, regulator and
government, contractor and employees, labor union, industry peers and association, media,
local and indigenous communities, society partners, non government organization, suppliers
and customers, investment organization and shareholders. The frequency and method of
communication used to communicate sustainable information to stakeholders are diverse.
Stakeholders such as contractors and employees are engaged through internal channels. Some
of the channels that are used by organization for communication includes newsletter, intranet,
e mail and town halls, inviting and comment through surveys of employee perception.
The stakeholder and customers of Wesfarmers are increasingly diverse and in order to
understand the expectation of stakeholders, they engage with them on direct basis. Objective
of board of Wesfarmers limited is to provide the shareholders with shareholders with
satisfactory return by fulfilling the responsibilities and obligations of corporate governance in