The current financial reporting system in the country has been described as inadequate in addressing the strategic earnings of corporate and individual entities.
This assertion was made by Prof. Ishola Akintoye, a professor of Accounting at Babcock University, Ilishan- Remo while delivering the university’s 28th Inaugural Lecture; according to a press release signed by Joshua Suleiman, Director of Marketing and Communication.
Akintoye said the inadequacy arose because sustainability accountability was yet to be incorporated in the current financial reporting adding that the efficiency of such a report would impact greatly on sustainable financial reporting.
The don stated 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”.
“The entire Accounting building which is currently cracking will sink beyond redemption,” Akintoye added in his lecture
titled, Accounting: A mismanaged concept requiring urgent redefinition.
He stated that he and a team of Accounting experts were developing a new Accounting model named ‘ Sustainability Accounting’ that went beyond the current assumption of stability and growth, to bring in economic, environmental and social factors.
Akintoye noted that the team was leveraging on Global Sustainability Index which had been developed for countries of the world to provide direction for government, private sectors and individuals.
He said these would serve as targets for all activities to be achieved in 2030.
According to Akintoye, the sustainable development targets were 17 and they included No poverty, zero hunger, good health and wellbeing, quality education, gender equality, clean water and sanitation.
He said others were, affordable and clean energy, decent work and economic growth, industry, innovation and infrastructure, reduced inequality, sustainable cities and communities.
Akintoye said the targets also included responsible consumption and production, climate action, life below water, life on land, peace and justice, and strong institutions partnership all of which he said were required to achieve this goal.
He asserted that an efficient sustainable financial report would enhance decision-making of the total stakeholders and guarantee the going concern of the business as well as the society in general.
The don recommended inclusion of strategic accounting and sustainability accounting in the Accounting curriculum at every level of education, by the Federal Ministry of Education and the National Universities Commission.
Akintoye recommended further 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 would be actualized.
He expressed 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.
“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,” Akintoye stated.
*Photo above: Professor Ishola Rufus Akintoye being congratulated by immediate Past
President/Vice Chancellor, Babcock University, Professor James Kayode
Makinde, and current President/ Vice Chancellor, Professor Ademola
Stephen Tayo at the University’s 28th inaugural lecture.