Accounting for Sustainability: Frameworks for the Aggregation of Financial and Non-financial Metrics

Sustainability Accounting—Cognitive and Conceptual Approach

“…However, scientific literature determines it mainly in individual aspects of accounting, such as reporting, attestation of disclosed results, cost accounting or performance audits in the light of selected theories [3,6,23,31,37]. There are only a few studies with a holistic perception of sustainability accounting (i.e., [7,11,15,30,56,57]). Moreover, the analysis of the literature allows to indicate risks of sustainability accounting development-the risk is mainly related to unethical misinformation practices overshadowed by a broad umbrella of accounting and qualitative characteristics of the information from the financial accounting system, such as credibility and reliability.…”

“…Due to the fact that a structured approach to the sustainability accounting framework is in general skipped in most research into sustainability accounting, the author of this manuscript promotes the structure of the Conceptual Framework of International Financial Reporting Standards as a basis for defining the main conceptions relating to accounting. Thus corporate disclosure, parameterized by financial accounting standards, ensures that investors and society have a true and fair picture of corporate financial activity [56], and managers have a basis for credible settlement in line with accountability. So the conceptual framework for sustainability accounting should be based on clear assumptions by specifying: Each of these areas requires in-depth research, and its basic assumptions are presented below in the article.…”

“…Sustainability accounting is defined as "an integrated system of financial measurement of economic, social and environmental aspects", so it collects, records, processes, analyses and reports information (usually financial information) connected with economic, environmental and social aspects of business, in order to improve the company balanced performance. Nevertheless, in this respect, the subject of sustainability accounting is an emerging phenomenon and can be best addressed through integration within the resource-based view of organizations [56,57]. The form of the subject is a methodological gap of sustainability accounting and its filling is a challenge for contemporary accounting [12].…”

“…That is, when organizing accounting, the objects of its actions are not only internal, but also external means and sources. Investors expect to improve their monitoring of corporate management by combining standard accounting information with a diverse array of other metrics of success like non-financial information, environmental, social and governance (ESG) indicators and sustainability indicators [56].…”

“…Nevertheless, internal control is the basis for ensuring the basic characteristics of the information from the accounting system, which can additionally be verified during the audit of the extended financial report. In particular, accounting professional practice stresses the importance of accountability and the verifiability of environmental and social information in annual reports [56].…”