Over the Past Several Years It Has Become Increasingly Important

question 34

Multiple Choice

Over the past several years it has become increasingly important for firms to improve achievement towards their social and environmental responsibilities.What is the best way the management accountant can help the firm improve on sustainability?

• A)Participate in programs of environmental organizations.
• B)Develop and implement a legal staff and public relations staff for dealing with sustainability issues that may affect the firm.
• C)Develop and implement a sustainability scorecard.
• D)Risk management.

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Definitions:

FVTOCI

Fair Value Through Other Comprehensive Income, a classification under IFRS for financial assets that are valued at fair value with changes recognized in other comprehensive income rather than profit or loss.

IFRS 9

An International Financial Reporting Standard that addresses the accounting for financial instruments, specifying how an entity should classify and measure financial assets, financial liabilities, and some contracts to buy or sell non-financial items.

Other Comprehensive Income

Income that is not part of net income, including unrealized gains and losses on certain types of investments, which is recorded directly in equity.

Significant Influence

The capacity to exert power over, or sway, the operating and financial policies of another entity without having control over it.