Accounting Theory Essay

2913 WordsNov 7, 201112 Pages
Triple bottom line reporting: the better method for company Abstract: As the economy grows, traditional accounting methods cannot meet the needs of modern society, many organizations and stakeholders require business entities to disclosure more information, such as social responsibility, environmental performance and sustainable development. Under this circumstance, the triple bottom line (TBL) reporting has been defined by Elkington in 1997. The research will focus on three parts of TBL reporting. Firstly, it will state several elements of good TBL reporting. Then, it will provide some benefits and limitations of TBL reporting to illustrate whether it can prevent the drawbacks for traditional accounting recording. After that, some of effective suggestions are given. The research will argue that as the TBL reporting is associated with economic, environmental and social performance and it has covered more fields, thus, this reporting are benefits not only for economic but also for environment and social activities. However, since this reporting is a new reporting and only appears a few years, additionally, it has not been examined too much and lacking of some effective methods to implement in practice. Therefore, TBL reporting needs a long period of improvement and accepts by most of the business entities for a long time. Introduction: Companies have traditionally been conceptualized as economic body with the major duties for manufacturing commodities and supplying services as effective as possible. A new period for business reporting is imminent. Around the world, many corporations have realized that traditional financial reports and conventional accounting recording methods are not adequate to supply comprehensive information to satisfy with the stakeholders’ benefits and organizations’ requirements. As the importance of

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