The Role of International Accounting Standards in Advancing Sustainability and Social Equity: Implications for Accountability and the value of economic units.

Abstract

This paper is going to examine the purpose of International Accounting Standards (IAS) in ensuring sustainability and social justice and will also show how the standards will contribute to accountability and long-term value generation at economic units. Against the backdrop of rising economic insecurity, rising climate issues and mounting societal expectations in terms of transparency and equity, the study utilised a quantitative analytical methodology in exploring the links between IAS and sustainability, social justice, accountability and long-term value.

The information was gathered with the help of a structured questionnaire that was sent to a sample of accountants, auditors, and other financial specialists conducting their activities in educational organizations and the State Audit Bureau. The hypotheses of the study were tested with the help of Descriptive statistical techniques, correlation test, multiple regression, and mediating role test. The findings indicated a statistically significant beneficial effect of the use of IAS on sustainability and social justice. Moreover, the research also showed that accountability and transparency are greatly increased due to the implementation of these standards and mediate partially the association between IAS and long-term value creation.

The researchers found that International Accounting Standards (IAS) are not only the instruments of financial reporting regulation, but the ones that help to support sustainable development, build social justice, and develop sustainable public value within the economic sector. The results have a practical implication to the policymakers, regulators and managers of the economic sector as the sustainability and social justice facet of accounting framework and disclosure system is highlighted. With this integration, accountability is maximized and long term institutional sustainability is achieved.