Enrique Is Encouraging His Company to Adopt an Approach to Environmentalism

question 59

Multiple Choice

Enrique is encouraging his company to adopt an approach to environmentalism that would see financial returns balanced with environmental and stakeholder concerns.This approach is best characterized as _________________.

• A) token response
• B) compliance with laws and regulations
• C) comprehensive environmental management
• D) sustainable development
• E) compliance with stakeholder expectations

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Definitions:

Adjustments

Changes made to preliminary financial statement figures to correct errors, account for prepayments, accruals, or to reflect a more accurate representation of the financial position.

Acquisition Method

An accounting technique used in consolidating the financial statements of a group in which a new acquisition is included.

Business Combinations

Transactions in which one entity gains control over one or more other businesses, including mergers, purchases of net assets, and consolidations.

AASB 3

Refers to the Australian Accounting Standards Board standard that outlines the requirements for the accounting of business combinations, including the recognition and measurement of assets, liabilities, non-controlling interest, and goodwill.