By Uzoma Akobundu
Professor Ishola Akintoye, a professor of accounting at the Babcock University in Ilishan Remo, Ogun State has made a case for a sustainable accounting system that will not leave environmental and human capital out of reporting.
Akintoye made the call on Thursday, April 4, 2019 as the Inaugural Lecturer during the university’s 28th Inaugural Lecture that attracted attendees cut across government and private sectors.
In the lecture with theme: Accounting: A mismanaged concept requiring urgent redefinition, the erudite professor called on government to insist that environmental cost and human capital are part and parcel of the statement of financial position going forward.
Akintoye, was of the opinion that the current financial reporting system is inadequate to address the strategic earning of corporate and individual life. “The current concept of Accounting and financial reporting system is inadequate to address the life of corporate and individual entities.”
He insists that sustainability accountability must be incorporated in the current financial reporting as doing so will impact greatly on sustainable financial report.
He faulted the past conceptual framework for the definition of Accounting, saying it “cannot be adequate in driving Accounting in the contemporary times and in the future.”
His words: “If efforts are not made for an urgent redefinition of Accounting, the entire Accounting building which is currently cracking will sink beyond redemption.”
Akintoye hinted that himself and a team of Accounting experts were developing a new Accounting model named ‘ Sustainability Accounting’ which goes beyond the current assumption of stability and growth, to bring in economic, environmental and social factors.
He said that they were leveraging Global Sustainability Index developed for countries of the world to provide direction for government, private sectors and individuals as targets for all activities to be achieved in 2030.
Akintoyem listed the 17 sustainable development targets as: “no poverty, zero hunger, good health and wellbeing, quality education, gender equality, clean water and sanitation, affordable and clean energy, decent work and economic growth, industry, innovation and infrastructure, reduced inequality, sustainable cities and communities.”
Others include “responsible consumption and production, climate action, life below water, life on land, peace and justice, and strong institutions partnership” all of which are required to achieve this goal.
He maintained that an efficient sustainable financial report will enhance decision-making of the total stakeholders and guarantee the going concern of the business as well as the society in general.
Akintoye madea number of recommendations that include: that the federal ministry of education and the national universities commission must include in the Accounting curriculum at every level of education, the subject of strategic accounting and sustainability accounting; that the practice of accounting must demonstrate and emphasize driving the future rather than short or medium term in the private and public sector of any economy if long term sustainability will be actualized; and the need to include human and environmental assets in the venture capital in business commencement and in evaluation of the strength and weakness of a company.
Others are: that government in all countries should insist, through their local regulatory agencies, that environmental cost and human capital be revealed in the statement of financial position of all corporate entities for public consumption.
People from all walks of live attended the lecture including the former Vice Chancellor, Professor James Kayode
Makinde, and current President/ Vice Chancellor, Professor Ademola Stephen Tayo, lecturers, students, other members of the university community and other visitors.