SciELO - Scientific Electronic Library Online

 
vol.18 issue3Determining South Africa's export potential to Australia: A panel data approachMeasuring the impact of marginal tax rate reform on the revenue base of South Africa using a microsimulation tax model author indexsubject indexarticles search
Home Pagealphabetic serial listing  

South African Journal of Economic and Management Sciences

On-line version ISSN 2222-3436
Print version ISSN 1015-8812

Abstract

YOO, Taeyoung  and  NAM, Giseok. An expanded accounting framework for sustainable growth: Focus on the relationship between a focal firm and its stakeholders. S. Afr. j. econ. manag. sci. [online]. 2015, vol.18, n.3, pp.366-379. ISSN 2222-3436.  http://dx.doi.org/10.17159/2222-3436/2015/V18N3A6.

In contrast to current accounting principles, which have focused on financial information about the reporting entity, this study suggests that attention should be paid to the information about relationships between a focal firm and its stakeholders. That is, we could more accurately assess the sustainability of a firm's profit and growth by considering both its financial outcomes and business relationships. The rationale of the suggestion is that firms which facilitate mutual profitability between themselves and their stakeholders are more likely to achieve cooperative relationships and consequently enjoy better financial performance and sustainable growth than those who pursue their profitability in an exclusive way. This study therefore suggests that principles of accounting should embrace not only the incomes of a firm and its consolidations (subsidiaries, associates and joint arrangements) but also those of its stakeholders, such as suppliers.

Keywords : principles of accounting; quality of outcomes; quality of information; societal relationships; sustainable growth.

        · text in English     · English ( pdf )

 

Creative Commons License All the contents of this journal, except where otherwise noted, is licensed under a Creative Commons Attribution License