Further Thoughts on Mega-Accounting and the Need for Standards

Abstract

This paper continues previous research (Mathews 1984, 1997b, 2000a, 2000b, 2003) into de
veloping a proposal for a system of comprehensive reporting based on a concept called mega
accounting.  The ideas in mega-accounting are similar to those behind GRI (2002) and triple 
bottom line (TBL) reporting (Elkington 1997), but with a different underlying philosophy, a 
social contract approach compared to one based on organisational legitimacy or the need for 
management to drive sustainability and sustainable capitalism which is sometimes called ‗the 
business case‘. The paper attempts to develop the concept of mega-accounting by identifying 
the purpose underlying the reports, identifying the basis of a conceptual framework and provid
ing an indication of the content that social and environmental accounting reports may include in 
the future.  Of necessity the research perspective is normative and deductive, as is much of the 
process of developing accounting standards, the model upon which it is argued social and envi
ronmental accounting should be based. The paper concludes by reiterating that the way forward 
for social and environmental accounting and reporting is for a conceptual framework to be 
agreed and standards developed via a normative-pragmatic process that will provide the basis 
for comprehensive, audited, corporate reports encompassing the social, environmental and eco
nomic dimension.  Furthermore, additional work is needed on the areas of macro-social ac
counting and externalities in order to develop a comprehensive framework.