Introducci´ on a las series de Fourier

7 1.

and International Emissions

Trading op.

analysis of the results of the Joint Survey undertaken by

and IETA on the accounting approaches applied in practice and assessment of the key accounting approaches considered suitable under IFRS. 72. Leung, Coram, BJ Cooper,

and Richardson, Modern auditing and assurance services, 4th edition,

2009, Brisbane: John Wiley Sons Australia, Ltd.

73. KPMG 2008, International of corporate responsibility reporting,

www.kpmg.com.

74. KPMG 2008, op. p. 58. Large companies are defined as the 100 largest companies by revenue, except for Sweden, where only 70 companies are included. 75. ibid.

76. ibid. ibid.

78. A Davies, 'The to paint the White House green', The Age Insight, April 4, 2009, p. 3.

79. Ceres (pronounced "series") is a national network of investors. environmental organisations and other public interest groups working with companies and investors to address sustainability challenges such as global climate change, www.ceres.org.

80. Carbon Disclosure Project, www.cdproject.net. 8 1. Carbon Disclosure Project,

op. in 2008 the CDP dealt with 385 institutional investors who collectively managed investor assets of trillion, www.cdproject.net.

82. KPMG, International Survey of Corporate Responsibility Reporting 2008, p. 62, www.kpmg.com. 83. ibid., p.

84. IAASB Completes Clarity Project [Media release], www.ifac.org. 85. Assurance Standard 2008,

London,

86. The International Organization for Standardization has issued

14064, which deals with quantification, reporting, validation and verification of greenhouse gas (GHG) assertions. It also specifies requirements for selecting GHG

establishing the level of assurance, objectives, criteria and scope, determining the

approach, assessing GHG data, information, information systems and controls, evaluating GHG assertions and preparing

statements.

87. B Owen,

'Assurance statement practice in environmental, social and sustainability reporting: a critical evaluation' The British Accounting Review, 37, 2, 2005, 88. C Deegan, BJ Cooper, and M

Shelly, 'An investigation of TBL report assurance statements: Australian evidence', Australian Accounting Review, vol. 16, 39, 2008, 2-18.

89. Federation des Experts Comptables Europeens,

90. KPMG 2008, op. p. 55.

1. IAASB, Approved Project Proposal 'Assurance engagements on carbon emissions information', December, 2007,

92. IAASB, December 2007, op. p. 5.

93. IASB, work plan awww.iasb.org. 94. IAASB Project Timetable as of

March 2009, http://web.ifac.org. 95. The Water Accounting Standards

Board (WASB) was previously known as the Water Accounting Development Committee (WADC), and is an independent advisory Board to the Bureau of Meteorology,

and the WADC was established in February 2007. The WASB succeeded the WADC in April 2009, with the same membership as existed for the WADC at the time, and a similar

aim. Both the WASB and the WADC envision the development of water accounting taking place over the next 20 years. The Water Accounting Standards Board reports to the Bureau of Meteorology, which is charged under the Water Act 2007 with responsibility for water accounting in Australia. 96. The information presented

in this section o n the Water Accounting Standards is based on the Australian project. Other organisations are also tackling these issues. For example, see www.wateraccounting.com. 97. WASB, op.

98. ibid.

99. For further details see 100. Australian Government

National Water Commission, ibid.

102. Statement of Water Accounting Concepts 2 Objective of General Purpose Water Accounting Reports (SWAC 2).

103. Water Accounting Standards Board, Water Accounting Conceptual Framework for the Preparation and Presentation of General Purpose Water Accounting Reports, Commonwealth of Australia, Canberra, 2009.

104. World Business Council for Sustainable Development and World Resources Institute, The greenhouse gas protocol, a corporate accounting and reporting standard (revised edition), www.ghgprotocol.org. 105. ibid., p. 9.

106. ibid., p. 44. 107. ibid. 108. ibid., p. 25.

109. L Gettler, 'Standard-setters rendered toothless by The Age

April, 15, 2009, p. 14.

A

a posteriori: once a statement has been developed, its validity is assessed based on objective empirical evidence.

a priori: the application of syntactic rules to test the validity of a statement 'from first principles', as opposed to testing the validity of a statement from observation of real-world events.

abnormal item: a large or unusual item of revenue or expense incurred during normal operations that is required to be disclosed separately because of its size and impact on the operating profit.

abnormal return: the difference between the expected and the actual return. For example, if the market average return on a particular investment is 10% and a return of 17% is achieved, then 7% represents an abnormal return.

accounting conceptual framework: a structured theory of accounting that is a coherent, interrelated theoretical description of the purpose, structure and components of accounting. It is intended to guide accounting practice.

accounting theory: logical reasoning in the form of a set of broad principles that provide a general framework of reference by which accounting practice

be evaluated and (2) guide the development of new practices and procedures. Accounting theory is a logically derived description, explanation, prediction or prescription of accounting practice.

accumulated benefits fund: a superannuation fund that provides a pension directly from the total contributions of the pension recipient; also known as a defined contribution fund.

additivity: the ability to add together values that are expressed in like values. For example, past costs cannot be added to future expectations or current market prices.

agency costs: costs that arise from agency relationships, for example because of the separation of ownership from control of an entity. Three types of agency costs have been identified: (1) monitoring costs, (2) bonding costs and (3) residual loss. Agency costs can be initially incurred by both principals and agents. However, principals are able to adjust how much they pay agents, so agents will ultimately bear at least some, and possibly all, of the incurred agency costs.

agency relationship: arises where one party (the principal) engages another party (the agent) to perform some service on the principal's behalf. Decision-making authority is delegated to the agent. In accounting theory, the principals most usually

considered are investors and lenders. The agents most usually considered are managers.

agency theory: a theory developed to explain and predict the actions of agents managers) and principals

shareholders or lenders). The theory assumes that both the agent and the principal are utility maximisers

they seek to maximise their returns) whose interests are not necessarily aligned. As a result, an agency relationship has agency costs.

agent: a person appointed by a principal to manage the principal's affairs. See agency relationship.

agreements equally proportionately unperformed a type of contract where both parties have yet to perform the same percentage of their individual obligations under the contract; also referred to as a wholly executory contract.

amortisation: systematic allocation of a prepaid expense to the periods in which the benefit from the expense is received. For example, the payment of building insurance 3 years in advance would be amortised (allocated) across each of the financial years covered by the insurance, rather than fully expensed in the year the insurance is paid.

anomalies: problems that cannot be solved and which contradict the dominant pattern.

model: a non-linear, S-shaped relationship between accounting numbers and share prices. Extreme gains or losses have a declining impact on prices because they are only temporary gains and losses.

asset: a resource controlled by an entity as a result of past events and from which future economic benefits are expected to flow to the entity.

asset substitution: occurs when managers invest in riskier investments than debtholders expected at the time they entered into the debt agreement. This reduces the value of the debt. Debtholders do not benefit from the increased returns that high-risk projects can provide; however, they can share in the possible losses. Debt lenders are therefore assumed to be risk averse and prefer firms to engage in less risky projects that increase the recoverability of their debt.

B

behavioural accounting research the study of the behaviour of accountants or the behaviour of non-accountants as they are influenced by accounting functions and reports. BAR research is concerned with improving the quality of decision making.

beta a measure of systematic risk; the non- diversifiable (market) risk in an investment.