Abstract:

Currently financial accounting function is going through an accelerated transformation. In this transformation the area of interest of the accounting function is expanding to serve the information needs of a greater number of interest groups’ wider spectrum of interests with financial, economic, social and environmental data related to the performance of companies. This transformation is initiated by the developments in stakeholder, corporate social responsibility, sustainability and environmental protection concepts. The area of interest of accounting function is developing in three dimensions. These are, specifying the interest groups (that is types of stakeholders), types of interest of each interest groups, and the measurement of each type of interest. The emerging accounting function can be named “social accounting”. Social accounting can be defined as an accounting function that specifies the interest groups, defines their interests, develops measures appropriate to measure for the interests defined, and collecting, analyzing and reporting the relevant data related to these measures. The financial accounting practice today aims at reporting only the financial interest (profit) of the shareholders, using verifiable financial data. On the other hand, the social accounting aims at reporting on all the interests of all the shareholders using all financial, quantitative or qualitative data. Social accounting processes this data and reports it. Social accounting presents very fruitful research areas for accounting function. This paper discusses the dimensions of the social accounting, the current level of accomplishments and its potentials.

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