Which of the Following Statements Is a Valid Criticism of the Accounting

question 8

Multiple Choice

Which of the following statements is a valid criticism of the accounting profession with respect to its consideration of social and environmental reporting?

• A)Practice of discounting liabilities, particularly those liabilities that will not be settled for many years, allows the recognition of future expenditures on environmental clean-up in the current period.
• B)Gray, Owen and Adams (1996) argue that discounting makes good economic sense but discourages entities in undertaking environmentally friendly activities.
• C)The profession has a narrow focus of users of social and environmental reports limiting this to investors, governments and institutional investors.
• D)IAS 37 Provisions, Contingent Liabilities and Contingent Assets limits the obligations relating to environmental performance to legal obligations.

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Definitions:

Sperm

The male sex cell.

Ovum

The female reproductive cell or egg, which when fertilized by a sperm, can develop into a new organism.

Prenatal Development

The process of growth and development within the womb from conception to birth, including the development of organs and structures of the fetus.

Embryonic

Pertaining to the earliest stage of development in living organisms after fertilization, characterized by rapid cell division and differentiation.