SASB Plans to Develop Sustainability Accounting Principles
The Sustainability Accounting Standards Board is planning to set up accounting principles/standards that are specific to the industry, for corporate sustainability related reporting. The SASB has been incepted to fill the gap in corporate financial reporting by simply quantifying the corporate non-finance related information value. The Sustainability Accounting Standards Board stated that it is planning to design and distribute sustainability accounting principles/standards publicly, which is going to ultimately benefit the investors, public and the company.
There are many other associations that are working in the similar direction. The International Integrated Reporting Council of London has also designed and developed sustainability reporting standards and has introduced the Integrated Reporting Emerging Practice Examples Database together with Black Sun plc, a consultancy that specializes in corporate reporting. The database containing reporting related model from organizations across the globe is a useful resource which gathers innovative concepts to assist organizations that are working in the direction of integrated reporting.
Yet another body called the Global Reporting Initiative, has also been designing as well as distributing sustainability reporting related guidelines. In fact, even Prince Charles has made suitable arrangements for the Prince’s Accounting for Sustainability Project, where the AICPA is playing an important role.
The Sustainability Accounting Standards Board has been set up to help the United States accounting principles/standards evolve by including sustainability related system into standard reporting format and further provide investors with much more genuine information. The board is trying to position itself on the lines of FASB.
Dr. Jean Rogers, SASB executive director stated that the Sustainability Accounting Standards Board will help United States understand material non-finance related matters and help in recognizing and accounting of those issues for corporate related reporting. He also mentioned that the standards developed by the SASB will help in promoting creation of value that is sustainable and eventually help the industries in United States become more competitive.
As part of its very first action plan, the Sustainability Accounting Standards Board will be creating a materiality map, which weighs the sustainability related matters’ priority in terms of industry in ten different sectors. Even Bloomberg, which has already been supporting the SASB is going to collaborate with the board and help in the design and development of the materiality map.