The Recent Debate on Environment Published Financial Statements of UK

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Those who believe that current financials statements are not reflective of the proper means assessing the success of the companies argue that successful business is basically based on quantitative results, which may include profit, key financials ratios (liquidity, debt, working capital, and investor ratios) which are all based on quantitative information of the financial statements. They argue although the quantitative results are covered by international financial reporting standards and the Auditors are duty-bound to ensure that the presented finical statements provided a fair view of the financial position of the companies’ results in all material aspects, the concept of success of business must also consider the total effect of business activities including the issue on the environment which has become a global concern for many countries. To sustain the concept of success of the business in terms of economic and social criteria without dealing with considering the environment is to miss what is natural. Without a sustainable environment under which businesses operate, companies cannot talk or even aim sustainability in its operations, and to forget sustainability is to forget long-term profitability that would guarantee justified returns for investors.Thus proponents for environmental concern posits that the success of companies’ activities, which is based on qualitative information brought about by changes in perspectives of the reasons why companies exist, not just the profit motive but must also be seen to be conscious of the environment in which they operate- taking corporate social responsibilities (CSR) of their operations. Indeed, one of the key elements of CSR is the environments in which companies operate.Almost all governments of the world have recognized the need to sustain the environment brought about the issues of global warming and unusual geological phenomena like the flooding, pollution caused by the use of the present form of energy.