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Case 5-1 and Case 6-2

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Case 5-1 and Case 6-2

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Running Head: CASE 5-1 AND CASE 6.

2 1

Case 5-1 and Case 6.2

Student’s Name

Institution Affiliation

Date
CASE 5-1 AND CASE 6.2 2

Case 5-1

Discuss why financial statement users find environmental disclosures informative.

It is crucial documents to be revealed to the users of the particular information regarding

information since it will be important for them to monitor the progress of the firm when it comes

to the efforts of the firm in matters of environmental conservation. It becomes imperative for

these firm to implement all regulations and laws which will put it in the good books of corporate

social responsibility and important allocation of its resources. When the firm does not take issues

of financial disclosures with utmost seriousness it can taint its image and lead to losses.

The users are able to use the financial and environmental disclosure to be very vital as it

provides insight as to if the company is following the rules or violating the regulations and it has

not been fined for violations. Most crucially it means the company has implemented all the

requirements of corporate governance through revealing the data associated with the

environment that is depicted in financial documents. It is very important for a company to

communicate the policies of the environment in the financial statements. It is obligatory for a

company to abide by the laws which dictate their corporate activities. Therefore, the company is

mandated to ensures that all matters regarding disclosures are taken seriously to protect the

interests of the organization.

Obtain the G3 sustainability reporting guidelines of the Global Reporting Initiative (GRI,

www. globalreporting.org). List the environmental performance indicators that the GRI

recommends for disclosure.

The performance indicators in the case are inclusive of transport , waste , emission ,energy ,

services , commodities and water.


CASE 5-1 AND CASE 6.2 3

How closely do Roche’s environmental disclosures match the GRI recommendations (see

Exhibit 5-3)? What are the areas of nondisclosure?

In my opinion, Roche has been able to reveal many categories of many social

performance indicators. The company has depicted utmost results when it comes to waste,

emissions, water and compliance. The aspects of non-disclosures in Roche is found in the

categories of biodiversity, material, commodities, and service. Roche has been found to have a

long-lasting strategy in the environment which means that the firm evaluates its business in

aspects of using an eco-balance technique. By use of Eco balance, it becomes imperative for

Roche to measure the total environment effects regarding its operations in the usage of resources

like energy and raw materials in addition to the restriction of emissions and waste.

Describe the environmental disclosures that O.J. should recommend his company make.

In my personal recommendation, It becomes imperative for the company to ensure it has

reported the performance indicators. This will be inclusive of enhancing activities in the areas of

biodiversity, areas where there is a lot of consumption and also invest in activities which reduce

the negative impacts on the environment like the product and services of the company.

Case 6-2

Based on the arguments presented, what do you think should be the functional currency in

this case?

I think the euro should be the functional currency in this case since it gets all the income

from Spain and also since the operating cash flow of the fund is established in Spain.

Nevertheless, the payment of expenses was made in dollars although all the income incurred

from Spain was denominated in euros. The investor is able to invest their money in the Spanish

securities in euro denominations, and it’s the primary task of the shady rest.
CASE 5-1 AND CASE 6.2 4

References

Choi, F. D., & Meek, G. K. (2008). International accounting. Pearson Education.


CASE 5-1 AND CASE 6.2 5

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