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

question 39

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) AASB 137 "Provisions, Contingent Liabilities and Contingent Assets" limits the obligations relating to environmental performance to legal obligations.
• E) None of the given answers

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Definitions:

Centralised Communication

Pertains to a communication structure where all decisions and messages flow through a central point or individual, typically found in hierarchical organizations.

Co-ordination Loss

The inefficiencies that arise in group tasks due to the poor integration of efforts, resources, or actions among team members.

Highly Centralised

Pertaining to a system or organization where decision-making is kept at a single central point, often leading to a concentration of power.

Hub Person

An individual who acts as a central point of information and communication within a network.