The influence of the development of accounting standards to preserve sustainability: Literature Review

Purpose: The study aims to investigate the relationship between the impact of the development of accounting pronouncements and the extent to which accounting can or should contribute to the pursuit of economic & social developments, and the sustainable development of an organization, and the contradiction between sustainability and accounting practices based on traditional financial reporting standards. It has been argued that the current accounting standards represent an attempt to present a ‘true and fair’ view. Design/methodology/approach: The study is essentially a literature review study that seeks to discuss a number of implicit assumptions within traditional accounting by IASB. Findings: Regulatory reports on the social and environmental dimension, particularly sustainability reports, demonstrate that accounting pronouncements, while trying to report on the environmental and social dimensions, suffer from some imbalance that has omitted environmental destruction and eroded any realistic concept of social justice. Practical implications: In this sense, this study seeks to demonstrate this contradiction and the strong and fundamental implications that this implies for traditional financial reporting and insignificant adjustments to these reports through new models of regulatory reporting. Originality/value: The study highlights the disregard of external factors as a major obstacle to the sustainability report and proposes accounting and tax designs to identify costs associated with external factors as a basis for fair reporting, pricing and sustainable business practice