Few minutes ago, Writers (Rahul Misra and Pallavi Patil ) of The Hindu "Business Line" has published a very knowledgeable content in this newspaper. As per this content,
"About 70% of a company's actual value does not appear on the balance sheet."Link
I read this content and I satisfy from its logic. Here, I am reviewing it in simple words.
1. # This contents tells that 95% company does not make environment sustainability and governance report. You should know what is in this report? This report tells non -financial data of using water and other resources. This report will also tells what is being done by company for these natural resources.
2. # Due to negligence of protecting natural resources and misusing without any control, corporate risks has become at large scale. Japan tsunami and earthquake are its simple examples. Now, big corporate accounting experts are thinking to include all the accounting standards and principles for showing all these corporate risks factors with balance sheet figures. Just showing financial liabilities is not sufficient because natural hazard are happening due to the corporate working. So, this should also be accountable. Billion of $ loss with human life in Japan's earthquake and tsunami are connected with misusing of natural resources of japan by its corporates.
3. # This content also hints that major accounting software players like SAP, Oracle and Microsoft are making new system in which all the non-financial data will be recorded and linked with financial data for knowing real value of company which is not being shown by company's balance sheet. They are also thinking to use eXtensible business reporting language (XBRL)
"About 70% of a company's actual value does not appear on the balance sheet."Link
I read this content and I satisfy from its logic. Here, I am reviewing it in simple words.
1. # This contents tells that 95% company does not make environment sustainability and governance report. You should know what is in this report? This report tells non -financial data of using water and other resources. This report will also tells what is being done by company for these natural resources.
2. # Due to negligence of protecting natural resources and misusing without any control, corporate risks has become at large scale. Japan tsunami and earthquake are its simple examples. Now, big corporate accounting experts are thinking to include all the accounting standards and principles for showing all these corporate risks factors with balance sheet figures. Just showing financial liabilities is not sufficient because natural hazard are happening due to the corporate working. So, this should also be accountable. Billion of $ loss with human life in Japan's earthquake and tsunami are connected with misusing of natural resources of japan by its corporates.
3. # This content also hints that major accounting software players like SAP, Oracle and Microsoft are making new system in which all the non-financial data will be recorded and linked with financial data for knowing real value of company which is not being shown by company's balance sheet. They are also thinking to use eXtensible business reporting language (XBRL)
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