ABIGAIL WAVINYA NGUNGI

BCMC01/2438/2019

LESSON 7 ASSINGMENT

1. State and explain the significance of social accounting in corporate

organizations

 Classifying Transactions: A country's economic activity involves numerous

transactions involving purchasing and selling, making and receiving
payments, importing and exporting, paying taxes, and many other
activities. Social accounting's greatest asset is its ability to accurately
categorize and summarize these various types of transactions, and then
extrapolate these aggregates to produce things like national income,
national expenditure, saving, investment, consumption expenditure,
production expenditure, government spending, foreign payments and
receipts, etc.
 In Understanding Different Sectors and Flows: Social accounting shed
information on the relative weight of the various economic flows and
sectors. They let us know if the production sector, the consuming sector,
the investment sector, or the rest of the world sector contributes more to
the national accounts than the other sectors.
 In Guiding the Investigators: Social accounts serve as a guide for economic
investigators by outlining the kinds of data that could be gathered to
examine how the economy behaves. Such information could be about the
gross domestic product, public spending on goods and services, personal
spending, gross private investment, etc.
 In Explaining Trends in Income Distribution: Variations in the components
of social accounts are a guide to the trends in income distribution within
the economy.
 Helpful in Big Business Organizations: Social accounts are also used by big
business houses for assessing their performance and to improve their
prospects on the basis of the statistical information about the various
sectors of the economy.

2. Describe the evolving framework of corporate governance?

The AA 1000 Framework and its Global Reporting Initiative (GRI) principles,
which encourage accountability reports, can be used as a framework for
corporate governance reporting and assurance. One-dimensional financial
reporting is transformed into multidimensional bottom lines through
corporate governance reporting (MBL). MBL reporting goes one step
farther than corporate sustainability reports created in accordance with
GRI standards. While corporate governance reporting stresses
multidimensional sustainability of governance, economic, ethical, social,
and environmental performance, the GRI focuses on the three
sustainability elements of SEE performance.