Economic activity is conducted by separately identifiable units.

The purpose of this essay is to look at the sustainability issues as a framework for understanding corporate environmental responsibility. The corporate accountability concept will be considered as well as impact of the stakeholders and other pressure groups upon the organisation and its environment. Social accounting and limitations in traditional accounting, when it comes to accounting for the environment, will be discussed. Finally, the last part of this essay is dedicating to New Zealand and …

…prepare and distribute general purpose financial report, and the need to follow accounting standards is established. Conclusion: The main purpose of this essay was to explain importance of the relationship between the most significant features in the accounting framework for financial reporting - the reporting entity concept, general purpose financial reports and accounting standards. An understanding of this elements and relationships of accounting theory guarantees an understanding of the rational behind actual and future practices.