BUACC 2614 – Management Accounting 2
Summer Semester 2015/16
Group Assignment
25% of total marks for the unit
In 2013 Park and Ravenel argued that as long as ESG (environmental, social and governance) externalities were unpriced, they are effectively invisible to financial markets and so cannot inform investment decisions. They wrote:
“To the extent that this failure prevents mainstream financial analysts from effectively assessing such social costs and benefits- and their potential effects on future corporate performance and value – the result may well be inefficient allocation of capital. ESG data thus has the potential to provide crucial market transparency and a unique lens through which to assess future company and investment performance” (Park A and Ravenel C (2013) Integrating Sustainability into Capital Markets: Bloomberg LP and ESG’s Quantitative Legitimacy, Journal of Applied Corporate Finance, 25:3)
“In a philosophical shift in thinking about corporate accountability, integrated reporting not only changes the form of reporting, but also its purpose. The underlying agenda is to make corporations more sustainable. Sustainability proponents argue that, in addition to providing information to a broad range of stakeholders, integrated reporting will change the way that corporations operate, helping them to make more sustainable decisions (IIRC 2011). This is very different from the traditional role of financial reporting, centred on providing financial information to external investors.” (Soderstrom N (2013), Sustainability Reporting: Past, Present and Trends for the Future, Insight 13: p.31).
Required
Discuss the issues raised in the above extracts. Your response should include: a clear definition of integrated (sustainability) reporting, what this may mean for traditional financial reporting, and how it may change the way that investment decisions are made. What problems do you consider a change to sustainability reporting may raise for corporations, investors and the accounting profession?
Please note the following:
• Format: Essay
• Contribution to overall assessment: 25%
• Length: 2200 – 2500 words
Your work must comply with the University’s General Guide for the Presentation of Academic Work. A useful link:
http://federation.edu.au/__data/assets/pdf_file/0018/190044 /2014-General-Guide-to-Writing-and-Study-Skills.pdf.
• This is a group-assignment. Each group needs to have a maximum 2 to 3 members in it. Please organise yourselves into groups.
• Please make sure that names and ID numbers of all group members are stated on the cover sheet of your submission.
As this is a group assignment, each member of your group is awarded the same mark. As we know, working in groups has its pros and cons. I am sure that you will hold constructive and energetic group discussions on the issues at hand. In case of any disagreements, you will be able to resolve them in a democratic and rational way. There will be times when you may have to agree to disagree with each other. Invariably different group members bring different skills to a project; it is up to you to make the best of it. I believe one can learn a lot by discussing the issues with one’s colleagues.
If you find your group members are “not pulling their weight” or there are problems with any member’s commitment, then please try to resolve those issues amongst yourselves. Open and honest communication always helps. If you are unable to resolve these issues, you are most welcome to see me and we will try to sort out the problems together. Do this as soon as possible and certainly before the due date.
For some reason, if you do not wish to work in a group, please let me know.
• BUACC2614, Management Accounting 2
• Semester 1, 2015
• Group Assignment
Bases of assessment HD P F
Content - Identification of relevant issues.
Research - Selection of relevant material.
A demonstration of critical evaluation of the material.
Expression of your viewpoint (and not a catalogue of quotes/ others’ ideas).
Expression - clarity, style (formal and academic), coherence in writing, grammar, punctuation, spellings and sentence structure.
A logical flow of argument at both the paragraph level and the overall text level.
Use of supporting arguments.
Use of literature to support the argument.
Structure – Synopsis (stated the topic, reflected main arguments and identified conclusions reached).
Introduction (clearly stated the essay question; outlined the plan for answering the question).
Discussion in appropriately linked sections and paragraphs.
Conclusion (no new material; reiterated the main line of argument).
Referencing procedure (within the text, and at the end of the text).
Appropriately styled and punctuated bibliography.
Overall Presentation – including cover page, line spacing, page numbering.
Mark (out of 25)