Abstract: This working paper responds to increasing calls for more and different forms of
accounting research involvement in accounting for sustainability. It provides background,
clarifies the accounting research issues, and suggests research methods. Background analysis
indicates that accounting for sustainability must go beyond supplemental reporting of ecological
and social information to include such emerging issues as integrated reporting of sustainability
information along with financial reporting. Additional emerging issues are needs of users of
sustainability reports, auditing and other assurance of sustainability information, and sustainability
implications of financial failure, accounting and auditing failures, and lack of enforcement.
Analysis of integrated reporting against traditional financial accounting theory concepts of the
purpose of financial reporting and the postulates of going concern, reporting entity, monetary unit,
and time period, indicates a need for substantial changes in the traditional financial accounting
model if sustainability issues are to be integrated. The agenda concludes with five research issues
and methods:
- An accounting research framework for sustainability using general systems theory
approaches that have been useful for similar emerging issues.
- Reporting of sustainability information which has been the focus of most research to date,
and the emerging important topic of integrated reporting.
- Users of sustainable information, their uses and perceived needs, an area that has been
largely neglected in research to date.
- Auditing and assurance issues that are taking on greater importance as more users
demand assurance for sustainability information. Issues include standards to be used and
users’ expectations and reactions.
- Financial distress and sustainability consequences of accounting and enforcement
failures that are just now being recognized as sustainability issues.
Keywords: accounting for sustainability, integrated reporting, needs of users, audit, assurance
1a Sustainable development science: fundamental concepts (definitions, fundamental concept
