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Managerial Accounting Assignment - AGL limited

   

Added on  2020-11-12

12 Pages2908 Words196 Views
MANAGERIAL ACCOUNTING

Table of ContentsINTRODUCTION...........................................................................................................................1Sustainability Report of AGL.................................................................................................1Sustainability report of Origin energy....................................................................................3Comparison between two sustainability reports.....................................................................5CONCLUSION................................................................................................................................9REFERENCES................................................................................................................................9

INTRODUCTIONManagerial accounting is defined as process of making reports, then analysing thesereports, and communicating these to management to carry out decision-making. This is done toidentify whether an organisation is directed towards achieving goals and objectives. This reportis based on sustainable reporting of two companies namely AGL and Origin Energy(Managerialaccounting meaning, 2018) .AGL (Australian Gas Light) Energy Limited, which is an Australian company establishedin 1837. It is involved in generation of electricity and gas for commercial as well as residentialpurpose. Origin Energy is a Australian public energy company founded in 2000 engaged inexploration of natural gas and their production. Sustainability reports of 2017 have beenprovided of both companies. Analysis of these reports is given along with comparison betweenthese two sustainability reports . Sustainability Report of AGLMeaning of sustainability in AGL is to consider responsibilities towards internal andexternal stakeholders as well as towards internal and external business environment.Sustainability is firstly divided among two broad categories, that are getting ahead with carbonconstrained approach and becoming more customer-centric. Further in narrow form, strategiesincludes:Moving from mass retailing to personal retailing.Instead of becoming owner of large assets AGL will become coordinator of large andsmall assets.Rather than high-emission of technology, AGL will focus on low-emission oftechnology.From grasping platforms in already existing markets to grasp new as well as existingmarkets.Principles of AGL are:Transparency: All relevant information should be provided to stakeholders related torehabilitation. 1

Engagement: Stakeholders such as investors, government, community, customers etc.should be involved in plans of rehabilitation which will help in accumulation of different aspectsand views. (Krapp, Nebel, and Sahamie, 2013)Accountability: AGL is responsible to publish information of rehabilitation activities atleast once in a year for external stakeholders.Reasons for adopting sustainability approach:Environmental issues of air and noise pollutionEnhancement of use of renewable energy resourcesOptimum use of limited water resourcesGreenhouse effect on climate changeIn sustainability performance reporting, AA1000 principles are applied. Reporting ofworkplace issues are kept confidential and defend employee from exploitation. Internal reportingrelated to compliance of corporate governance and complaints handling processes assures ofproper administration (Davis and Davis, 2011). Also in consideration with remuneration process,gender equity is required to be adopted by leaders. Incident and hazard reporting system isdesigned in such a manner that issues related to them can be resolved in an effective manner.Areas of interest are policies of government, concerned public areas, enforcement of program,and aspects related to policies of international processes (BOGDĂNOIU, 2011).Areas of strong focus are cyber security risks, creating awareness about protectinginformation. AGL is big supporter of price liberation because it will lead to increase incompetition and ultimately brings innovation. AGL emphasizes on generating communityinterest in solar plants. For development of culture, AGL is concentrating on smarter working byjoining technology, places and employees. Material sustainability issues in providing clear information, approach of AGL inchoosing partnership with other organisation, career development, issues in recognition ofpersonnel etc. are some weak points of performance of AGL.In a survey of Australian Workplace Equality Index (AWEI) conducted by Pride inDiversity, AGL established national benchmark for completing this survey and awarded withGold Tier Employer. It was in the top 8.6% of 116 employers in this survey of 2017. And in2016, AGL was awarded with silver status. An independent panel gave grants worth $1.692

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