THE OFFICIAL NEWSLETTER OF THE WORLD CONGRESS OF ACCOUNTANTS 2010
AUGUST 2010
GOLD SPONSORS
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Striving for Sustainability The overriding theme of the WCOA 2010 is “Accountants: sustaining value creation”, which asks how accountants can create and sustain value for their organisations in order to remain relevant in a volatile post crisis environment. The sessions on sustainability reporting will consider how accountants can integrate financial and non-financial reporting seamlessly to move beyond historical disclosures into real-time reporting, qualitative analysis and forecasting to meet the strategic needs of business. “Some organisations adopt environmental-economic accounting that brings together economic and environmental information in a common framework to measure the contribution of the environment to the economy, and the impact of the economy on the environment,” says the WCOA 2010 organising chairman Dr Lee Yee Chong. This can include reporting on carbon footprints and health and safety issues such as waste disposal, spills and remediation, he explains. “Conceptually, sustainability has three important dimensions: environmental sustainability, economic sustainability and socio sustainability,” says Lee. “While pursuing the commercial imperative, mainstream economics often ignores the environmental and social dimensions of sustainability development. It is important to reconcile the economic, social and environmental aspects within a holistic and balanced sustainable development framework,” he adds in reference to the mega-trends of climate change, global population growth and urbanisation.
WCOA 2010 organising chairman Dr Lee Yee Chong. Dr Lee Yee Chong
WCOA 2010 Organising Chairman
Since these three elements are interdependent, best-practice disclosure recommends that organisations report on these in an integrated fashion, that is, connected reporting. The connected reporting framework will enable accountants to deliver more analytical and predictive reporting in addition to providing enhanced credibility and assurance to stakeholders. Other key sustainability issues include embedding sustainability principles in corporate governance, and governance and ethics, which encompasses human rights, child labour and corruption. Making the leap to sustainability will be challenging, and entails a mindset change. “Business today does not focus on long-term goals and objectives but rather on short term efforts,” says Lee. “There is resistance to change.” Change, however, is imperative as the global population expands towards nine billion people – the population estimate for 2050 contained the Vision 2050 report from the World Business Council for Sustainable Development. Part of this article is extracted from CPA Australia’s InTheBlack August 2010 issue.
ABOUT THE WORLD CONGRESS OF ACCOUNTANTS
CONGRESS THEME: ACCOUNTANTS: SUSTAINING VALUE CREATION
The WCOA is held under the auspices of the International Federation of Accountants (IFAC). Since its inception in 1904, the World Congress has been held every five years since 1977 and every four years since 2002. It is the foremost international event for the accountancy profession. This is a highly respected and well-attended global forum attracting influential communities to share and debate important issues affecting the accountancy profession now and into the future.
Professional accountants operate in all facets of the global economy creating value and upholding business integrity in both the private and public sectors. In a world demanding short term solutions, professional accountants are challenged to sustain long term growth. Accountants lead strategic teams and are charged with creating value and safeguarding assets. They are an important part of organisational governance, and provide regulators and society with assurance that business has operated to the highest standards. This World Congress will explore issues related to key areas that directly and indirectly affect the continued relevance of the professional accountant in the coming years.