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<br /> www.cpaj.com March 2014<br /> Sustainability<br /> Reporting<br /> Realizing<br /> the Growing<br /> Opportunity<br /> Evolution of Sustainability • Assurance Opportunities • Integrated Reporting<br /> <br /> <br /> CONTENTS<br /> march 2014<br /> 6 PERSPECTIVES 18 IN FOCUS <br /> 5 Publisher's Column<br /> Accounting for Virtual Currencies<br /> 6 Perspectives<br /> Is It Time for Companies to Capitalize on<br /> Sustainability? Considering the Opportunities<br /> and Challenges<br /> Sustainability—The Accounting Perspective<br /> A Growing Interest in Sustainability: Paving<br /> the Way for the Next Generation of CPAs<br /> 18 In Focus<br /> The Expanding Use of Sustainability Reporting:<br /> Standards Setting and Assurance Opportunities f<a title="The CPA Journal - March 2014 page 1" href="http://viewer.zmags.com/publication/cdb4a7af?page=1"> www.cpaj.com March 2014 Sustainability Repor</a> <a title="The CPA Journal - March 2014 page 2" href="http://viewer.zmags.com/publication/cdb4a7af?page=2"> </a> <a title="The CPA Journal - March 2014 page 3" href="http://viewer.zmags.com/publication/cdb4a7af?page=3"> </a> <a title="The CPA Journal - March 2014 page 4" href="http://viewer.zmags.com/publication/cdb4a7af?page=4"> CONTENTS march 2014 6 PERSPECTIVES 18 IN FOC</a> <a title="The CPA Journal - March 2014 page 5" href="http://viewer.zmags.com/publication/cdb4a7af?page=5"> vol. LXXXIV/no. 3 26 ESSENTIALS </a> <a title="The CPA Journal - March 2014 page 6" href="http://viewer.zmags.com/publication/cdb4a7af?page=6"> Not Yet a Member? Well, You’re Missing Out! </a> <a title="The CPA Journal - March 2014 page 7" href="http://viewer.zmags.com/publication/cdb4a7af?page=7"> publisher’s column Accounting for Virtual </a> <a title="The CPA Journal - March 2014 page 8" href="http://viewer.zmags.com/publication/cdb4a7af?page=8"> PERSPECTIVES viewpoint Is It Time for Companie</a> <a title="The CPA Journal - March 2014 page 9" href="http://viewer.zmags.com/publication/cdb4a7af?page=9"> </a> <a title="The CPA Journal - March 2014 page 10" href="http://viewer.zmags.com/publication/cdb4a7af?page=10"> (Continued from page 6) as well as the volatility</a> <a title="The CPA Journal - March 2014 page 11" href="http://viewer.zmags.com/publication/cdb4a7af?page=11"> Compliance costs. In a 2011 article, “The Re</a> <a title="The CPA Journal - March 2014 page 12" href="http://viewer.zmags.com/publication/cdb4a7af?page=12"> awareness, culture, incentives, resources, willin</a> <a title="The CPA Journal - March 2014 page 13" href="http://viewer.zmags.com/publication/cdb4a7af?page=13"> emerging issues Sustainability— The Accountin</a> <a title="The CPA Journal - March 2014 page 14" href="http://viewer.zmags.com/publication/cdb4a7af?page=14"> lenges, US Airways and American Airlines finally </a> <a title="The CPA Journal - March 2014 page 15" href="http://viewer.zmags.com/publication/cdb4a7af?page=15"> reporting.org/Pages/FR-UPS-2013.aspx or http://ww</a> <a title="The CPA Journal - March 2014 page 16" href="http://viewer.zmags.com/publication/cdb4a7af?page=16"> represents an assessment of the trade-offs betwee</a> <a title="The CPA Journal - March 2014 page 17" href="http://viewer.zmags.com/publication/cdb4a7af?page=17"> future of the profession A Growing Interest</a> <a title="The CPA Journal - March 2014 page 18" href="http://viewer.zmags.com/publication/cdb4a7af?page=18"> Even today, CPA firms are identifying the </a> <a title="The CPA Journal - March 2014 page 19" href="http://viewer.zmags.com/publication/cdb4a7af?page=19"> tionship management model is evolving and seems t</a> <a title="The CPA Journal - March 2014 page 20" href="http://viewer.zmags.com/publication/cdb4a7af?page=20"> In Focus </a> <a title="The CPA Journal - March 2014 page 21" href="http://viewer.zmags.com/publication/cdb4a7af?page=21"> The Expanding Use of Sustainability Reporting St</a> <a title="The CPA Journal - March 2014 page 22" href="http://viewer.zmags.com/publication/cdb4a7af?page=22"> Sustainability performance can be defined as a </a> <a title="The CPA Journal - March 2014 page 23" href="http://viewer.zmags.com/publication/cdb4a7af?page=23"> better relationships with government authorities,</a> <a title="The CPA Journal - March 2014 page 24" href="http://viewer.zmags.com/publication/cdb4a7af?page=24"> in industry, practice, government, and academia. </a> <a title="The CPA Journal - March 2014 page 25" href="http://viewer.zmags.com/publication/cdb4a7af?page=25"> G250 companies and N100 companies issu- ing resta</a> <a title="The CPA Journal - March 2014 page 26" href="http://viewer.zmags.com/publication/cdb4a7af?page=26"> States, is largely uncertain, investments in clim</a> <a title="The CPA Journal - March 2014 page 27" href="http://viewer.zmags.com/publication/cdb4a7af?page=27"> </a> <a title="The CPA Journal - March 2014 page 28" href="http://viewer.zmags.com/publication/cdb4a7af?page=28"> ACCOUNTING & AUDITING financial re</a> <a title="The CPA Journal - March 2014 page 29" href="http://viewer.zmags.com/publication/cdb4a7af?page=29"> areas of economic, environmental, and social perf</a> <a title="The CPA Journal - March 2014 page 30" href="http://viewer.zmags.com/publication/cdb4a7af?page=30"> Positive Return of Responsible Business,” Aug. 1,</a> <a title="The CPA Journal - March 2014 page 31" href="http://viewer.zmags.com/publication/cdb4a7af?page=31"> In “Triple Bottom Line Reporting for CPAs: Cha</a> <a title="The CPA Journal - March 2014 page 32" href="http://viewer.zmags.com/publication/cdb4a7af?page=32"> EXHIBIT 2 Global Reporting Initiative (GRI) G4 Re</a> <a title="The CPA Journal - March 2014 page 33" href="http://viewer.zmags.com/publication/cdb4a7af?page=33"> sis. Many of the standard disclosures, espe- cial</a> <a title="The CPA Journal - March 2014 page 34" href="http://viewer.zmags.com/publication/cdb4a7af?page=34"> help organizations establish processes that will </a> <a title="The CPA Journal - March 2014 page 35" href="http://viewer.zmags.com/publication/cdb4a7af?page=35"> closures certainly reflect a potential materi- al</a> <a title="The CPA Journal - March 2014 page 36" href="http://viewer.zmags.com/publication/cdb4a7af?page=36"> integration, but it does contain some unique info</a> <a title="The CPA Journal - March 2014 page 37" href="http://viewer.zmags.com/publication/cdb4a7af?page=37"> by a third party (Brian Ballou, Dan L. Heitger, a</a> <a title="The CPA Journal - March 2014 page 38" href="http://viewer.zmags.com/publication/cdb4a7af?page=38"> ACCOUNTING & AUDITING financial re</a> <a title="The CPA Journal - March 2014 page 39" href="http://viewer.zmags.com/publication/cdb4a7af?page=39"> sentations—for example, free cash flow should not</a> <a title="The CPA Journal - March 2014 page 40" href="http://viewer.zmags.com/publication/cdb4a7af?page=40"> effect is dilutive. Stock compensation awards imp</a> <a title="The CPA Journal - March 2014 page 41" href="http://viewer.zmags.com/publication/cdb4a7af?page=41"> In this release, the PCAOB offered a proposal r</a> <a title="The CPA Journal - March 2014 page 42" href="http://viewer.zmags.com/publication/cdb4a7af?page=42"> TAXATION not-for-profit organizations New Yor</a> <a title="The CPA Journal - March 2014 page 43" href="http://viewer.zmags.com/publication/cdb4a7af?page=43"> holder by implementing a stockholder rights plan </a> <a title="The CPA Journal - March 2014 page 44" href="http://viewer.zmags.com/publication/cdb4a7af?page=44"> EXHIBIT Profiles of New York Benefit Corporation</a> <a title="The CPA Journal - March 2014 page 45" href="http://viewer.zmags.com/publication/cdb4a7af?page=45"> loan forgiveness offered for government ser- vice</a> <a title="The CPA Journal - March 2014 page 46" href="http://viewer.zmags.com/publication/cdb4a7af?page=46"> TAXATION corporate taxation Structuring a Bon</a> <a title="The CPA Journal - March 2014 page 47" href="http://viewer.zmags.com/publication/cdb4a7af?page=47"> agement concluded were “excess” inven- tory that </a> <a title="The CPA Journal - March 2014 page 48" href="http://viewer.zmags.com/publication/cdb4a7af?page=48"> poses because it did not transfer domin- ion and </a> <a title="The CPA Journal - March 2014 page 49" href="http://viewer.zmags.com/publication/cdb4a7af?page=49"> Learning from the Past Although IRC section </a> <a title="The CPA Journal - March 2014 page 50" href="http://viewer.zmags.com/publication/cdb4a7af?page=50"> FINANCE business valuation Minority Interest </a> <a title="The CPA Journal - March 2014 page 51" href="http://viewer.zmags.com/publication/cdb4a7af?page=51"> The fact that the petitioner found sever- al case</a> <a title="The CPA Journal - March 2014 page 52" href="http://viewer.zmags.com/publication/cdb4a7af?page=52"> effectively an application of the market approach</a> <a title="The CPA Journal - March 2014 page 53" href="http://viewer.zmags.com/publication/cdb4a7af?page=53"> FINANCE personal financial planning 20 Quest</a> <a title="The CPA Journal - March 2014 page 54" href="http://viewer.zmags.com/publication/cdb4a7af?page=54"> Which Types of Distributions Are Available? Th</a> <a title="The CPA Journal - March 2014 page 55" href="http://viewer.zmags.com/publication/cdb4a7af?page=55"> owner/borrower is in need of cash and going into </a> <a title="The CPA Journal - March 2014 page 56" href="http://viewer.zmags.com/publication/cdb4a7af?page=56"> FINANCE corporate finance Foreign Currency Ma</a> <a title="The CPA Journal - March 2014 page 57" href="http://viewer.zmags.com/publication/cdb4a7af?page=57"> Functional Currency It is important to properl</a> <a title="The CPA Journal - March 2014 page 58" href="http://viewer.zmags.com/publication/cdb4a7af?page=58"> and type of entities subject to consolidation and</a> <a title="The CPA Journal - March 2014 page 59" href="http://viewer.zmags.com/publication/cdb4a7af?page=59"> MANAGEMENT financial reporting Improving Stake</a> <a title="The CPA Journal - March 2014 page 60" href="http://viewer.zmags.com/publication/cdb4a7af?page=60"> holders. There is a growing need for accountants </a> <a title="The CPA Journal - March 2014 page 61" href="http://viewer.zmags.com/publication/cdb4a7af?page=61"> example, it increased from 74% to 83%. But the re</a> <a title="The CPA Journal - March 2014 page 62" href="http://viewer.zmags.com/publication/cdb4a7af?page=62"> Integrated Reporting CSR activities may be rep</a> <a title="The CPA Journal - March 2014 page 63" href="http://viewer.zmags.com/publication/cdb4a7af?page=63"> n What are the specific opportunities and risks t</a> <a title="The CPA Journal - March 2014 page 64" href="http://viewer.zmags.com/publication/cdb4a7af?page=64"> MANAGEMENT corporate finance </a> <a title="The CPA Journal - March 2014 page 65" href="http://viewer.zmags.com/publication/cdb4a7af?page=65"> are consistent with the company’s finan- cial dat</a> <a title="The CPA Journal - March 2014 page 66" href="http://viewer.zmags.com/publication/cdb4a7af?page=66"> a benchmark to ensure that an integrated report i</a> <a title="The CPA Journal - March 2014 page 67" href="http://viewer.zmags.com/publication/cdb4a7af?page=67"> picture” view. Correlations can be bet- t</a> <a title="The CPA Journal - March 2014 page 68" href="http://viewer.zmags.com/publication/cdb4a7af?page=68"> from many sources, including human resources, ope</a> <a title="The CPA Journal - March 2014 page 69" href="http://viewer.zmags.com/publication/cdb4a7af?page=69"> Exhibit 4 identifies some measurement and r</a> <a title="The CPA Journal - March 2014 page 70" href="http://viewer.zmags.com/publication/cdb4a7af?page=70"> RESPONSIBILITIES & LEADERSHIP research A</a> <a title="The CPA Journal - March 2014 page 71" href="http://viewer.zmags.com/publication/cdb4a7af?page=71"> ing on their sustainability initiatives (KPMG 200</a> <a title="The CPA Journal - March 2014 page 72" href="http://viewer.zmags.com/publication/cdb4a7af?page=72"> REFERENCES n Alali, F., and Romero, S., “The U</a> <a title="The CPA Journal - March 2014 page 73" href="http://viewer.zmags.com/publication/cdb4a7af?page=73"> Overall, research in the area of sustain- abil</a> <a title="The CPA Journal - March 2014 page 74" href="http://viewer.zmags.com/publication/cdb4a7af?page=74"> TECHNOLOGY what to bookmark Websit</a> <a title="The CPA Journal - March 2014 page 75" href="http://viewer.zmags.com/publication/cdb4a7af?page=75"> costs as a percentage of premium revenue. Plan pe</a> <a title="The CPA Journal - March 2014 page 76" href="http://viewer.zmags.com/publication/cdb4a7af?page=76"> CLASSIFIEDMARKETPLACE PROFESSIONAL OPPORTUNITY l</a> <a title="The CPA Journal - March 2014 page 77" href="http://viewer.zmags.com/publication/cdb4a7af?page=77"> CLASSIFIED Well Established Diversified Atlantic </a> <a title="The CPA Journal - March 2014 page 78" href="http://viewer.zmags.com/publication/cdb4a7af?page=78"> CLASSIFIED SALES TAX, ISAAC STERNHEIM & CO. Sales</a> <a title="The CPA Journal - March 2014 page 79" href="http://viewer.zmags.com/publication/cdb4a7af?page=79"> CLASSIFIED </a> <a title="The CPA Journal - March 2014 page 80" href="http://viewer.zmags.com/publication/cdb4a7af?page=80"> CLASSIFIED Ad</a> <a title="The CPA Journal - March 2014 page 81" href="http://viewer.zmags.com/publication/cdb4a7af?page=81"> ECONOMIC & MARKET DATA monthly u</a> <a title="The CPA Journal - March 2014 page 82" href="http://viewer.zmags.com/publication/cdb4a7af?page=82"> EDITORIAL a message from the editor-in-chief </a> <a title="The CPA Journal - March 2014 page 83" href="http://viewer.zmags.com/publication/cdb4a7af?page=83"> </a> <a title="The CPA Journal - March 2014 page 84" href="http://viewer.zmags.com/publication/cdb4a7af?page=84"> </a>