ACW3120: You Have Been Approached by your firm to Undertake Rigorous Research to Explain the Issues Raised in the IFRS Foundation’s: Financial accounting 3 Report, Monash University, Australia

The following are detailed instructions:

(1) Memo The accounting firm for which you work (this is just pretending, most students are not currently working for an accounting firm, use your imagination to make up a name and letterhead for your accounting firm) has decided to submit feedback on the IFRS consultation paper.

You have been approached by your firm to undertake rigorous research to explain the issues raised in the IFRS foundation’s (2020) consultation paper and advise whether or not your firm should support the introduction of a single set of internationally recognized sustainability reporting standards.

Therefore, in your own words write a memo to your colleagues at the accounting firm explaining the issues raised in the IFRS Foundation’s “Sustainability-related project” and provided the requested advice. Your memo should:

(a) Provide a brief description of key concepts raised in the IFRS Foundation’s sustainability-related reporting project including what sustainability reporting is and how it is different from traditional financial reporting?

(b) Critically analyze the existing voluntary (non-mandatory) practice of sustainability reporting. Note: Your critical analysis should include relative merits (benefits) and demerits (costs) of continuing with the existing voluntary practice of sustainability. Therefore, you need to provide both for and against evidence-based arguments.

(c) Critically analyze the need for the introduction of a single set of global (mandatory) sustainability reporting standards by the IFRS foundation? Note: Your critical analysis should include relative merits (benefits) and demerits (costs) of introducing global sustainability reporting standards. Therefore, you need to provide both for and against evidence-based arguments.

(d) Advice on whether or not your accounting firm should support the introduction of a global set of sustainability reporting standards by the IFRS foundation. Note: This advice should be supported with a well-justified logical argument based on the critical analysis of the IFRS foundation’s sustainability reporting project. 5

(2) Letter In your own words, draft a short letter to a client who will be impacted by the IFRS Foundation’s project explaining the impact of the introduction of a single set of internationally recognized sustainability reporting standards. Your client operates in an environmentally sensitive industry where the demand for sustainability information is high. Please use your imagination for the client’s industry, name, and sustainability issues. The client letter should:

(a) Provide a brief overview of the IFRS foundation’s sustainability reporting project without technical using accounting terminology. Remember your client is not an accountant.

(b) Explain and illustrate the possible impacts of introducing global sustainability reporting standards. Please assume your client does not report its sustainability performance.

Hint: Consider how these changes will impact the usefulness of information reported by your client and what sort of information your client would need to report