By Destiny Day
A professor of Accounting at the prestigious Babcock University in Ilishan Remo in Ogun State, has called on government to insist that environmental cost and human capital be revealed in the statement of financial position.
Professor Ishola Akintoye, a professor of accounting at Babcock University thinks the current financial reporting system is inadequate to address the strategic earning of corporate and individual life.
He feels that sustainability accountability is yet to be incorporated in the current financial reporting.
Delivering the institution’s 28th Inaugural Lecture on Thursday, April 4,2019 Akintoye enthused that the efficiency of sustainable accounting report will impact greatly on sustainable financial report.
The university don noted that the past conceptual framework for the definition of Accounting “cannot be adequate in driving Accounting in the contemporary times and in the future.”
“If efforts are not made for an urgent redefinition of Accounting,” he said, “the entire Accounting building which is currently cracking will sink beyond redemption.”
His lecture is: Accounting: A mismanaged concept requiring urgent redefinition.
Akintoye stated that himself and a team of Accounting experts were developing a new Accounting model named ‘ Sustainability Accounting’ which goes beyond the current assumption of stability and growth, to bring in economic, environmental and social factors.
He noted that they were leveraging on Global Sustainability Index which has been developed for countries of the world to provide direction for government, private sectors and individuals as targets for all activities to be achieved in 2030.
According to Akintoye, the sustainable development targets are 17 and they include “no poverty, zero hunger, good health and wellbeing, quality education, gender equality, clean water and sanitation, affordable and clean energy, decent work and economic growth, industry, innovation and infrastructure, reduced inequality, sustainable cities and communities.”
Others, he said include “responsible consumption and production, climate action, life below water, life on land, peace and justice, and strong institutions partnership” all of which are required to achieve this goal.
Akintoye asserted that an efficient sustainable financial report will enhance decision-making of the total stakeholders and guarantee the going concern of the business as well as the society in general.
The current concept of Accounting and financial reporting system is inadequate to address the life of corporate and individual entities.
His recommendations were also thought-provoking.
They include: that the federal ministry of education and the national universities commission must include in the Accounting curriculum at every level of education, the subject of strategic accounting and sustainability accounting; that the practice of accounting must demonstrate and emphasize driving the future rather than short or medium term in the private and public sector of any economy if long term sustainability will be actualized; and the need to include human and environmental assets in the venture capital in business commencement and in evaluation of the strength and weakness of a company.
Also, he recommended that government in all countries should insist, through their local regulatory agencies, that environmental cost and human capital be revealed in the statement of financial position of all corporate entities for public consumption.
The lecture was well attended by the former and current leadership of Babcock, the lecturers, students, members of the university community and other visitors.