Concept of Social Accounting | LECTURE 20 JKSSB |ACCOUNTS ASSISTANT | CA LATEEF (AIR-35 CA FINAL) скачать в хорошем качестве

Concept of Social Accounting | LECTURE 20 JKSSB |ACCOUNTS ASSISTANT | CA LATEEF (AIR-35 CA FINAL)

Concept of Social Accounting | LECTURE 20 JKSSB |ACCOUNTS ASSISTANT | CA LATEEF (AIR-35 CA FINAL) Website :- www.eactclasses.com Link of Book:- https://drive.google.com/file/d/10iXL... Contact No. +91-9711374943 SOCIAL ACCOUNTING Business is a socio-economic activity and it draws its inputs from the society; hence its objective should be the welfare of the society. It should owe a responsibility towards solving many of the social problems. The concept of ‘Social Accounting’ has gained importance as a result of high-level industrialization which has brought prosperity as well as many problems to the society. It has necessitated the corporate sector, with huge amounts of funds at their disposal, to invest substantial amounts in social activities so as to nullify the adverse effects of industrialization. Social accounting is concerned with analysing and evaluating organizational impact on society and its environment. It measures the social costs and benefits of various organizational activities. Social accounting is the process of communicating the social and environmental effects of organizations' economic actions to particular interest groups within society and to society at large. It is also known as social accounting and auditing, social accountability, social and environmental accounting, corporate social reporting, corporate social responsibility reporting, non-financial reporting or accounting. Social accounting is an Information system in which the societal losses and benefits of an organization are identified accurately and measures those losses and benefits aptly and reporting those in such a manner so that the sustainability of the organization is judged by the society. Features of Social Accounting (i) Social accounting is an expression of a company’s social responsibilities. (ii) Social accounting is related to the use of social resources. (iii) Social accounting emphasizes on relationship between firm and society. (iv) Social accounting determines desirability of the firm in society. (v) Social accounting is application of accounting on social sciences. Objectives of Social Accounting The concept of social accounting gained prominence and momentum as a result of high level of industrialization that had necessitated the corporate to invest substantial amount in the social activities. Main objectives of social accounting are to help society by providing different facilities by enterprise and to record them like: 1. Effective utilization of natural resources: Main objectives of making social accounting are to determine whether company is properly utilising their natural resources or not. To identify and measure the periodic net social contribution of an individual firm consisting of cost and benefits internalised to the firm and externalities affecting social system. 2. Help to employees: Company can help employees by providing the facility of education to children of employees, providing transport free of cost and also providing good working environment conditions. 3. Help the society: To help determine whether individual firms’ strategies and practices which directly affect the relative resource and power status of individuals, social segments, generations consistent with widely shared social priorities one hand and individual aspirations on the other. Because companies' factories spread the pollution in natural society which is very harmful for society. So, enterprise can help to society by planting the trees, establishing new parks near factory area and also opening new hospitals. 4. Help to customers: If company provides goods to customers at lower rate and with high quality also benefits the society. To provide optimal information to all the constituents of the society to enable them to make decisions regarding allocation of the social resource where optimally implies cost/benefit effective reporting strategy which also optimally balances potential information conflicts among the various constituents of a firms. Need/Benefits of Social Accounting The important benefits of social accounting are as follows: 1. A firm fulfils its social obligations and informs its members, the government and the general public to enable everybody to form correct opinion. 2. It counters the adverse publicity or criticism levelled by hostile media and voluntary social organisations. It assists management in formulating appropriate policies and programmes. 3. Through social accounting the firm proves that it is not socially unethical in view of moral cultures and environmental degradation. 4. It acts as an evidence of social commitment. 5. It improves employee motivation. 6. Social accounting is necessary from the view point of public interest groups, social organisations investors and government. 7. It improves the image of the firm. #SOCIAL_ACCOUNTING #jkssb #Accounts_Assistant