Triple Bottom Line Accounting Concept And Framework

According to the text, the triple bottom line approach to corporate accounting includes three components:

The purpose of this paper is to define accounting, and identify the four basic financial statements. The paper also explains how the different financial statements are interrelated to each other and why they are useful to managers, investors, creditors, and employees.

TBL is a sustainable model for business that balances financial success, community participation together with ecological sustainability. The firm which employs triple bottom line towards capturing the set significances, processes as well as issues of the company might decrease and determine whichever harms resulting from company’s operations then create economic, social as well as environmental values of that the company. The model typically outlines that everything is supposed to taken into account that needs of the company 's shareholders, employees, stakeholders, governments, clients, business partners, local communities together with the entire public. Reporting through Triple bottom line (TBL) is currently turning out to be more ordinarily used across several sectors within

Financial Statements are very important part when running any type of organization. Looking at the statements it provides a very good view in how to understand an organization financially. The balance sheet has three key points: assets, liabilities, and a net assets. When summing the liabilities and net assets should always sum equally to the total assets. Investors will use this type of information in order to determine an organization’s financial conditions. When using the balance sheets it lets the person have a quick review of what the assets, liabilities, and net assets in were they are distributed within the time fame. A single step income statements uses revenues, expenses, and the net income and using the multi-step income statements provide information on how the operating and the non-operating system work. The community hospital had there up and downs between the year 2012

Melting glaciers, depleting water resources and decreasing air quality needs immediate attention. Everyone needs air and water to survive. Business started practicing sustainable accounting in mid-70. This practice discloses non-financial and financial information related to the business activities that has direct impact on society and its environment (air, water, people etc.). Companies use triple bottom line method to calculate the impact of business activities on society and based on these calculation companies makes policies which make its operation more ecologically and socially

The triple bottom line is an accounting framework that incorporates what is commonly referred to as the three P 's: people, planet, and profit.

The triple bottom line outcome focuses on the concept where firms are environmentally conscious and socially responsible by achieving a balance between profits, avoiding damage to the environment, and achieving social benefits (Douglas, 2012). Traditionally, firms focused on profit maximization to achieve profits to pay out dividends and capital gains so shareholders can buy things. In a recent article, Nursing Homes are overbilling Medicare $1.5 billion a year for treatments patients don’t need or never receive. When nursing homes

The “Triple Bottom Line” can be best included in places where nonprofits need to work on. For instance, you should best include it where the nonprofit is lacking on helping the people and the world. The “Triple Bottom Line” should only be used in places where you want to improve your business not hinder it. Therefore the “Triple Bottom Line” should be best in improving the way an organization impacts people and the environment by focusing on what the nonprofit need to do to improve across the board. Also, it can be included with monitoring and calculating cost.

Therefore, they require acceptance rather than mere adherence. The article presents individual principles which are applied to accounting: utilitarianism and deontological. Pros and cons of utilitarianism when applied to accounting, its influence in the business context in the sense that most economic and finance concepts are implicitly or explicitly built on the assumption that companies are interested in maximizing short-term self-interest. However, the accounting concepts are often presented as neutral or as morally correct, and accounting control has a moral quality (Preuss,

As BWB is truly interested in the social aspect, the financial reporting structure should also describe how the profits will be used to enhance the company and the social organizations that receive donations. Investors would have increased confidence in BWB if they were to learn that BWB retains profits to ensure the company’s viability, rather than profits to support corporate officers earning large wages and bonuses. Next we’ll explore the three dimension of the triple bottom line.

The triple bottom line or TBL is an accounting framework that was created by John Elkington for measuring the company’s sustainability in the mid-1900s (Slaper & Hall, n.d). The triple bottom line incorporates the three dimensions of company which are people, planet, and profit or they were called 3P (Investopedia, 2015). First, people is about measuring the company’s degree of social responsibility, the second is planet, which measures the company’s environmental responsibility, and the last one is profit that measures company’s economic value (The Economist, 2009).

Continuous changes in the world’s economy have forced companies to go beyond their commercial purposes and pay attention to the importance of social actions. One of the first scholars to initiate the requirement of social initiatives for corporate enterprises was Bowen (1953). He argued that businessmen should aim broader than just maximizing profits for shareholders and should contribute to the society as well (Carroll, 1999). Eventually, more scholars performed research on a firm’s corporate social responsibility (CSR) and tried to define this new insight. A few decades later, Elkington (1997) introduced the term ‘Triple Bottom Line” (Carroll, 1999). He referred to three dimensions that could be impacted by a company’s system and policy,

A triple bottom line model never merely quantifies an accomplishment or rather the wellbeing of a company through its conventional monetary bottom line. However, triple bottom line similarly measures social, ethical as well as environment performance of the company. Triple bottom line typically is an incessant process that shall assist the company in concentrating into the performance of a more sustainable business whereas demonstrating to local communities together with employees of that particular firm that is not merely looking forward on profit making, but similarly a greater common good for the company operations (Hitchcock and Willard, 2009).

The aim of this assignment is to “Identify the ‘other users’ [of business accounts] and assess the extent to which financial accounting information is of use to managers, and management accounting information is of use to ‘other users’.” The appropriate definitions and roles of financial and management accounting will be given and the ‘other users’ of accounts will be identified. Thereafter, the uses of both financial accounting information and management accounting information will be discussed and analysed to evaluate the extent to which each is of use to the needs of managers and ‘other users’ respectively.

The triple bottom line principles are terms which layout the areas that a firm needs to satisfy in order to successfully address its goal and become corporately sustainable. A company that fits into all triple bottom line principles should be socially responsible, profitable and environmentally conscientious. All three areas are equally important and should complement one another. A company needs to be environmentally responsible in order to lower their carbon footprint and maintain their working areas in good conditions. Also, they need to be socially responsible in order to create a nurturing community that engages and retains their stakeholders. Finally, a company needs to be profitable for it to switch from