BFA715: Environment Disclosure and Sustainability Report

This research report provides a comprehensive overview of environment disclosure and sustainability in financial reporting, emphasizing its significance in preventing and detecting accounting scandals. It defines the concept, highlights its application, and explores the role of environment disclosure and sustainability in the modern corporate world. The report includes a literature review of five key articles, which highlight the importance of this topic. The research also outlines the methods for implementing environment disclosure and sustainability reporting. The report concludes by summarizing the main findings and implications of the research proposal, emphasizing the growing importance of environment disclosure and sustainability in the corporate sector and its role in promoting corporate social responsibility.

Running head: ENVIRONMENT DISCLOSURE AND SUSTAINABILITY IN
FINANCIAL REPORTING
Environment disclosure and sustainability in financial reporting
Name of the Student
Name of the University
Author note

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ENVIRONMENT DISCLOSURE AND SUSTAINABILITY IN FINANCIAL
REPORTING
Table of Contents
Background................................................................................................................................2
Motivation and justification.......................................................................................................6
Research aim..............................................................................................................................7
Literature review........................................................................................................................9
Research design and method....................................................................................................13
Expectation on findings............................................................................................................14
Reference..................................................................................................................................15

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ENVIRONMENT DISCLOSURE AND SUSTAINABILITY IN FINANCIAL
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Executive summary
The aim of the research report is to give a brief explanation of the concept of environment
disclosure and sustainability in financial reporting in the prevention and detection of
accounting scandals. The research report explains the definition and usage of the environment
disclosure and sustainability in financial reporting with a literature review on five important
articles that explains the importance of environment disclosure and sustainability in financial
reporting in the modern corporate world. The research report also contains the methods that
are used to explain the implementation of environment disclosure and sustainability reporting
and in conclusion it states the main findings that can be reflected from this research proposal.

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ENVIRONMENT DISCLOSURE AND SUSTAINABILITY IN FINANCIAL
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Background
In the modern days the environment disclosure and sustainability in financial
reporting has been given the highest priority. The environment disclosure and sustainability
in financial reporting has become a major tool in the corporate sector which will lead to the
implementation of the corporate social responsibility programs in an organisation. In the
current corporate world environmental issues are gradually increasing, and the prevention
and the detection of such activities become very difficult due to the complexities in the
operation process of any business. The environment disclosure and sustainability in financial
reporting helps in solving the problems that are related with the sustainable development and
environment related problems that happen in an organization. This reporting system usually
requires the analysis, inspection, investigation and the questioning process in order to find out
the reason for the occurrence of pollution and to get expert opinion regarding the steps that
are essential for the prevention of such activities that causes pollution. Environment
disclosure and sustainability in financial reporting concentrate on the prevention and the
detection of the fraud and the investigation of frauds in the financial statements. The
environment disclosure and sustainability in financial reporting system requires both the
application of the theory and practical aspect of accounting and for that reason it become
popular among the organizations and the managers used to implement the environment
disclosure and sustainability in financial reporting system to ensure that the organisation
does not effect the environment and along with earning profit it also serve its duty towards
the society.
The main reason for selecting this area is due to the growing demand of the use of the
environment disclosure and sustainability in financial reporting and as the environment
disclosure and sustainability in financial reporting requires high level of analytical and
investigative skills. The scope of environment disclosure and sustainability reporting is very
wide and requires in depth research and analysis along with acquiring knowledge so that it
can be possible to detect the possible factors of environment pollution and to find out the

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ENVIRONMENT DISCLOSURE AND SUSTAINABILITY IN FINANCIAL
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process to solve the problems that arise due to environment degradation, it is a concept that
requires high quality analysis and for that reason this area has been selected for the research.
Article 1 Article 2 Article 3
Author(s) Williams, B and
Horner, C and Allen
Cojoianu, TF and
Ascui, F
Adler, R and Mansi,
M and Pandey, R
and Stringer, C
Year 2019 2017 2017
Title Flipped vs
traditional teaching
perspectives in a
first-year accounting
unit: an action
research study,
Accounting
Education.
Developing an
evidence base for
assessing natural
capital risks and
dependencies in
lending to Australian
wheat farms, Journal
of Sustainable
Finance &
Investment, 8, (2)
pp. 1-19. ISSN
2043-0795 (2017)
[Refereed Article]
United Nations
Decade on
Biodiversity: A
study of the
reporting practices
of the Australian
mining industry,
Accounting,
Auditing and
Accountability
Journal, 30, (8) pp.
1711-1745. ISSN
0951-3574 (2017)
[Refereed Article
Full citation Flipped vs
traditional teaching
perspectives in a
first-year accounting
unit: an action
research study,
Accounting
Education
Developing an
evidence base for
assessing natural
capital risks and
dependencies in
lending to Australian
wheat farms, Journal
of Sustainable
Finance &
United Nations
Decade on
Biodiversity: A
study of the
reporting practices
of the Australian
mining industry,
Accounting,
Auditing and

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ENVIRONMENT DISCLOSURE AND SUSTAINABILITY IN FINANCIAL
REPORTING
Investment, 8, (2)
pp. 1-19. ISSN
2043-0795 (2017)
[Refereed Article]
Accountability
Journal, 30, (8) pp.
1711-1745. ISSN
0951-3574 (2017)
[Refereed Article
Research goal/aim To detect the
importance of
environment
disclosure and
sustainable reporting
system
To understand the
concept of the
environment
reporting and
sustainable strategy
framing.
To understand the
benefits that the
environment
disclosure and
sustainable reporting
can bring for the
growth of the
organisations.
Specific research
question(s)
How to implement
the concept of
environment
disclosure and
sustainable reporting
in an organisation?
How to prepare an
efficient sustainable
report structure?
How to assess the
benefits of the
environment
disclosure and
sustainable reporting
?
Main theory relied
upon (literature
review, research
design)
Environmental and
sustainable
reporting.
Sustainable
reporting
Benefits availed
from sustainable
reporting and
environment
disclosure reports.
Research Sample
(participants, data…)
Staff and members
of big audit firms.
Environmentalists
and the members of
various regulating
bodies that look after
the environmental
issues.
Interview of board
members of various
organisations which
adopted the
environment and
reporting system.
Research Tools Surveys surveys survey

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ENVIRONMENT DISCLOSURE AND SUSTAINABILITY IN FINANCIAL
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(instruments,
surveys, tests,
software…)
Conclusions or
recommendations
relating to
accounting practice
The implementation
of this concept will
assist the
organisations to
achieve sustainable
growth.
This article will
provide an idea
about the legal
aspects that are
related with the
environment issues.
The article will
provide a idea about
the benefits that the
organisations will
get by the successful
implementation of
the environment
reporting.
Motivation and justification
The concept of environment disclosure and sustainability in financial reporting
though is very demanding but there is a lack of knowledge among the common people about
this concept, and for that reason it become essential to make a research on this area and to
find out the basic concept of environment disclosure and sustainability in financial reporting
and enable the readers to get a preliminary idea about the rules and guidelines that are
essential for the successful implementation of the environment disclosure and sustainability
in financial reporting system.
From the analysis of the report it can be easily understandable that the environment
disclosure reporting system helps in detection of the activity that may occur in the
organization and causes harm to the environment. Environment disclosure and sustainability
in financial reporting is very analytical in nature and helps the organization to the interpret all
the transactions and find out these areas which are liable for the occurrence of any issue that
will obstruct the sustainable growth.
From the personal experience through detail study of the process of preparation of
environment related reports and sustainability in financial reporting system it can be said that
the methods which are used in environment disclosure and sustainability in financial

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reporting mixes an understanding of accounting principles with the techniques of
investigation to identify whether the actions behind financial records and statements are
suspicious. Individuals specialized to accomplish environment disclosure and sustainability in
financial reporting process and frame a strategy so that the organisations can attain its
financial and social aim. The main reason for the research is that it helps in the development
of awareness in the usage of environment disclosure report process and sustainability in
financial reporting in an organization and to inspire the organizations to increase the usage of
environment disclosure and sustainability in financial reporting so that it can be possible for
the company to achieve sustainable growth in the future. The basic need of the research in
this particular area is to enhance the usage of environment disclosure and sustainability in
financial reporting and to assist in developing the general concept of this process.
Research aim
The main problem that has been observed during the research process is the lack of
knowledge among the organization about the concept of the environment disclosure and
sustainability in financial reporting as this concept is a new one and the users does not
possess basic concept knowledge about the concept of environment disclosure and
sustainability in financial reporting it become a problem to get relevant information from the
users which creates obstacle in the research process.
The main question that arise from the problem statements is, whether the users of
environment disclosure and sustainability in financial reporting have adequate knowledge
about the environment disclosure and sustainability in financial reporting?
Before raising the over arching research question, it is also essential to discuss some
of the preliminary questions which are listed below:
Is the environment disclosure and sustainability in financial reporting provide enough
information during the litigation?
Is environment disclosure and sustainability in financial reporting being the right process to
detect any manipulation of the accounting system?

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Can environment disclosure and sustainability in financial reporting detect the acceptance
and offering of bribes or any monetary benefits from or to any third party?
Is it being possible for the environment disclosure and sustainability in financial reporting
system to detect the possible areas from which environment pollution occurs?
Will it be possible to identify the deliberate misrepresentation of the organisation in the
application of the environment disclosure and sustainability in financial reporting?
Is its is possible for the environmental disclosure and sustainability in financial reporting
system to disclose all the activities that the management take to protect the environment and
in the improvement of the society?
The research title is critical review of environment disclosure and sustainability in financial
reporting.
Literature review
The trustworthiness of the financial statements that are made by the boards of the
limited liability companies and audited by the external auditors remains the primary source of
information for the shareholders to make an idea about the financial position of the company.
The article states that environment disclosure and sustainability in financial reporting helps in
detecting the areas where the management should take care of for the development of the
environment and prevention of pollution, and prevent the management from doing such type
of activity that will affect the environment negatively. Environment disclosure and
sustainability in financial reporting is not just a technique to prevent environment pollution
but it also helps in the formulation of an internal control system in the accounting process that
will ensure that all the affairs of the business are recorded properly and the interest of the
society and the environment are safeguarded.
The article further provides that environment and sustainability reporting system
require high level of knowledge and skill and the professionals that are rendering the service
of environment disclosure and sustainability in financial reporting should have high level of
expertise so that they can easily detect the activity that is responsible for polluting the
climate and protect the interest of the stakeholders. With the implementation of the

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environment and sustainability financial reporting it has been observed that the percentage of
environment pollution has declined and most of the companies has adopted this financial
reporting process in order to fight against the degradation of the environment. The
investigation process of the environment disclosure and sustainability in financial reporting is
so scientific that it can easily detect the factors and find out the probable reason for the
occurrence of such activities that causes pollution in the environment and create obstacle in
the sustainable growth of the organisation and the persons who are responsible for such
activities. The environment disclosure reporting become a tool which helps the organizations
to carry their business in a transparent process and maintain a clean image in the society
(Williams Horner and Allen 2019).
The article further provides that the environment disclosure and sustainability in
financial reporting can be defined as the use of the accounting, auditing and investigative
skills to help in legal matters. One of the big audit firm PWC states that in order to detect
serious social crime like encouraging the process of pollution or corruption simple
knowledge will not be sufficient and the organizations has to adopt speedy sensitivity
detection and also a very profound knowledge base so that it can be possible to find out any
kind of activity that is causing environment pollution and take necessary actions against such
activities. In the modern days with the usage of modern technologies and harmful chemicals
the rate of pollution from industrial wastes increased rapidly and it become very difficult to
control this kind of activity without having sufficient skill and knowledge in this context the
environment disclosure and sustainability in financial reporting system plays a important role
and help the organizations to find out such complex issues and provide solutions to prevent
the occurrence of social crime. The different type of environment pollution like air pollution,
water pollution, noise pollution and many different types of manipulative methods that are
applied to hide the actions that cause harm for the environment can be easily be discovered
by applying the environment disclosure and sustainability in financial reporting. So, in the
modern days to fight against the advanced methods of pollution the organizations largely
depend on the environment disclosure and sustainability in financial reporting system as it is
the only method that helps in the detection of the complex environment pollution activities
and prevent the occurrence of environment pollution and help the company to attain
sustainable growth.

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Environment pollution causes a major harm in the economic development of any
country and this is required to be prevented. The environment disclosure and sustainability in
financial reporting system provides the guidelines to the organisations to protect the economy
from the effect of environment pollution and maintain a sustainable growth of the companies
and also in the development of the socio-economic condition of any country.
The environment disclosure and sustainability in financial reporting is also defined as
the science to law. Environment disclosure and sustainability reporting is the scientific
method that provide legal remedy against the forgeries or negligence’s that may results in the
occurrence of any environmental issues. The author of this article defines the environment
disclosure and sustainability in financial reporting as the method of accounting which is
appropriate for legal review and the greatest level of assurance and ensure that the modern
days complex fraudulent activities can be detected in a scientific way and that prevent the
organizations to involve in the emanating hazardous industrial wastages that leads to the
happening of serious environmental incidents in the future. According to the author the
environment disclosure and sustainability in financial reporting method is so scientific that it
is very difficult to hide any manipulative process from the investigation done under this
system. They further claim that the sustainability and environment disclosure reporting
system is sufficiently complete so that an organisation through proper judgement can detect a
probable reason for the occurrence of any environmental issue and take a legal action against
such matter. It is further be opined that in order to get detailed evidence about the
improvement of the environment the environment and sustainability reporting system shows
a guideline based on which it might be possible for any organisation should have in depth
knowledge about the nature of the environment pollution and that will help the investigator to
easily find out the area from which the pollution of the environment has evolved and the
responsible persons who have committed such activities. The environment disclosure and
sustainability in financial reporting thus possesses legal concepts in order to give aa legal
review of all the transactions that are made by the company. The environment disclosure and
sustainability in financial reporting system thus contain a legal aspect which helps it to
provide remedy from the negative affect of accounting mis statements (Adler et al 2017).

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According to this literature review it can be claimed that in the modern days the
organisation should set a sustainable growth model in which priority is to be given in both
profits earning and also in the development of the society and the protection of the
environment. As business can not exist without taking the help of the society so it is a big
responsibility of the organisations to pay back to the society what they have earned from it.
The environment disclosure reporting makes it mandatory for the organisations to disclose all
the actions that it has taken for the improvement of the environment and to ensure that these
actions are properly implemented by the organisation. the company also have to disclose the
fund that they allocated for various social responsibility programs and should spend more for
the protection of the environment.
On the other hand, the author of this article define that the environmental and
sustainable financial reporting should have the potential to demonstrate special technique in
rules of evidence and the law. The author explained that the sustainable reporting required
analytical skills rather than the practical knowledge as that will help the organisation to find
out the strategies that are essential to achieve long term growth. According to the author of
this article, it is observed that the sustainability reporting enables the company to take
necessary actions to prevent the pollution in the environment and increase the corporate
social responsibility initiatives of the organisation. He states that without having strong
analytical and investigative knowledge it will never be possible to predict the complex nature
of the fraudulent activities in the modern business world. In order to detect frauds, it will be
required to face more practical issues that will help the investigator to solve the cases more
quickly and more efficiently. Knowledge is required but it is more essential to apply the
knowledge accurately without having practical knowledge it will never be possible to prepare
an environmental disclosure report and the sustainable strategies that will assist the
organisation to achieve its objective (Cojoianu and Ascui 2017).
Accounting theories
The environment disclosure and sustainability reporting are based on several
accounting theories some of these are stated below
Agency theory

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ENVIRONMENT DISCLOSURE AND SUSTAINABILITY IN FINANCIAL
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This theory is essential to give an explanation regarding the factor for which the
particular accounting theory is used and focus on the relationship between the principal and
the agents. Companies are required to disclose the information relating to the reduction of the
coast of agency and also the cost related with the social responsibility.
Legitimacy theory
As per the legitimacy theory a company is required to have legitimacy in the logic of
social licence to function the essential resources to effectively operate business.
Stakeholder theory
This theory proposes the to consider various perspective and expectations of a wide
group of constituents having an interest in corporate activities researchers state that the
stakeholder’s theory as the most important theory in describing the sustainability and
environment reporting practices.
Positive accounting theory
The positive accounting theory is related with the estimation of such actions as the
selection of accounting policies that are applicable for sustainability and environmental
reporting. The positive accounting theory assists to reconcile the effective sustainability
theory with the economic consequences.
Research design and method
From the literature review it can be understood that the environment disclosure and
sustainability in financial report requires both the theoretical and practical knowledge and
skill in order to detect and predict reason of the failure of the companies to attain sustainable
growth. The research design for this study is descriptive in nature. The population of the
study includes some senior members and staffs of some reputed audit firms in the world like
the KPMG, Deloitte, PWC and Earnest Young more than 150 questionnaires received from
the members and staffs of the audit firms out of 200 send to them. 100 questionnaires were
taken back from the chambers of the legal experts of such organizations. This formed the
sample for the work. The sample is drawn from all the parts of Australia. Apart from the legal

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departments the opinion of the information technology professionals of these organizations
are also taken.
Research question
Is it possible for environment and sustainable reporting system to provide sufficient evidence
during the time of any legal case?
Is it being possible for the environment disclosure and sustainability in financial reporting to
detect the negative affect of industrial effluents?
Can the environment and sustainable reporting provide guidelines to the board members?
Can the environment disclosure and sustainability in financial reporting detect serious
environmental issues?
What type of skills more required for environment disclosure and sustainability in financial
reporting theoretical or analytical?
Expectation on findings
A casual look at the application of the of environment disclosure and sustainability in
financial reporting as a tool for confidence in auditors’ reports reveal that the forensic audit
on transactions will invigorate the auditor’s assurance in the evidence provided by their
clients. The findings so far shown that the environment disclosure and sustainability in
financial reporting help the auditors to quantify losses from environment pollution. The
findings also reflect that the application of the environment disclosure and sustainability in
financial reporting can help in detecting the acceptance of unfair practices that will promote
environment pollution. The study also reveals that the misstatement in the sustainability
strategies can also be identified by the environment disclosure and sustainability in financial
report. Finally, the research findings reflect that with the upgradation of technology and
excessive use of chemicals and hazardous materials it is indispensable for every big concern
to adopt the environment disclosure and sustainability in financial reporting system in order
to ensure that the organisation perform their responsibility towards the society and the
environment.

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In conclusion it can be stated that this research report highlighted the importance of
the environment disclosure and sustainability in financial reporting system and try to find out
the process that are essential for the successful implementation of the environment disclosure
and sustainability in financial reporting in the organizations. The research report reflects that
in the modern days in order to prevent the complex issue of accounting scandals it is
important for every organization to adopt the environment disclosure and sustainability in
financial reporting system in order to ensure that the accounting scandals does not occur
frequently and the organizations can maintain a sustainable growth in the future.
Reference
Adler, R and Mansi, M and Pandey, R and Stringer, C, United Nations Decade on
Biodiversity: A study of the reporting practices of the Australian mining industry,
Accounting, Auditing and Accountability Journal, 30, (8) pp. 1711-1745. ISSN 0951-3574
(2017) [Refereed Article
Cojoianu, TF and Ascui, F, Developing an evidence base for assessing natural capital risks
and dependencies in lending to Australian wheat farms, Journal of Sustainable Finance &
Investment, 8, (2) pp. 1-19. ISSN 2043-0795 (2017) [Refereed Article]

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ENVIRONMENT DISCLOSURE AND SUSTAINABILITY IN FINANCIAL
REPORTING
Williams, B and Horner, C and Allen, S, Flipped vs traditional teaching perspectives in a
first year accounting unit: an action research study, Accounting Education, 28, (4) pp. 333-
352. ISSN 0963-9284 (2019) [Refereed Article]