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To catalyse the impact economy, we need a common language which unites the various disciplines covered by the universe of impact investing, including environmental science, sociology, anthropology, human capital, childhood education and development, workforce development, criminal justice, diversity equity and inclusion and more and which translates those into monetary estimates to enable decision-making, and to catalyse more sustainable and just outcomes. Impact accounting seeks to do just that by uniting the statements of an organisation's financial health and performance with monetised impact accounts that reflect the organisation's positive and negative impacts on employees, customers, the environment and the broader society. This chapter provides an argument for impact accounting, an implementation roadmap, and grapples with principles and ethics-based challenges for impact accounting.

Collectively, we can use impact accounting to demand accountability from the businesses from which we purchase or of which we are equity owners, either through from investment managers and our retirement accounts. We must demand that they start showing the impact-weighted earnings of their profits or the ‘true’ price of the product they produce.

The objective of this study aims at reviewing a synthesis of the economic impact of the implementation of International Financial Reporting Standards (IFRS) in an attempt to provide directions for future research. There are significant evidences of adopting a high-quality set of harmonised accounting standards (i.e. IFRS) fosters trade and foreign direct investment (FDI), financial transparency, and comparability and reduces information asymmetries. From the extensive structured review of literature using the Scopus database tool, the study reviewed 108 articles, and in particular, the topic-related 41 articles were analysed. Seven journals contribute to 39% of the articles (The Accounting Review; European Accounting Review; International Journal of Accounting; Journal of Accounting Research; Revista Espanola de Financiacion y Contabilidad; Asian Review of Accounting; and International Journal of Economics and Management). However, most of the cited journals were Journal of Accounting Research, The Accounting Review, European Accounting Review, and International Journal of Accounting (Armstrong, Barth, Jagolinzer, & Riedl, 2010; Brüggemann, Hitz, & Sellhorn, 2013; Christensen, Lee, & Walker, 2007; Daske, Hail, Leuz, & Verdi, 2008, 2013). Most of the studies did not use any theory, and most of the articles utilised quantitative approach. The study calls for future research on the theoretical impactions on the economic impact of IFRS implementation in a country-specific study, cross-country study, and global study. Future studies should also focus on the policymaking agenda for the local and international standard setters.

This paper aims to investigate the extent to which accounting standards for social impact reporting are in the public interest. This study aims to explore what the public interest means for social impact reporting by charities; and assess the extent to which the accounting standardisation of social impact reporting supports the public interest so defined.

This study conducts a case study of how stakeholders in Australian charities conceptualise the public interest when discussing accounting standardisation. This paper distinguishes three concepts of the public interest from prior research, namely, aggregative, processual and common good. For each, this paper analyses the implications for accounting and how accountants serve the public interest, and how they align with stakeholder views.

Stakeholder views align with the aggregative and processual concepts of public interest, however this was contested and partial. Accounting standards for social impact reporting will only serve the public interest if they also capture and implement the common good approach.

Clarifying how key stakeholders interpret the public interest can help standard-setters and governments design (or withhold) accounting standards on social impact reporting. This paper also distinguishes different practical roles for accountants in this domain – information merchants, umpires or advocates, which each public interest concept implies.

This paper extends prior research on accounting for the public interest to social impact reporting. The paper empirically demonstrates the salience of the common good concept of public interest and demonstrates the diversity of views on the standardisation of social impact reporting by charities.

In addition to introducing the papers that contribute to the special issue on “Accounting for Social Impact”, the purpose of this editorial is to prompt critical reflection and discussion on the concept of social impact in accounting research and practice.

This editorial draws on Alvesson and Blom’s (2021) hembig concept to frame the discussion. After briefly introducing the hembig concept, we discuss social impact in accounting research and practice in relation to it before reflecting on potential implications. We then introduce the contributions to this special issue.

While we argue that social impact in accounting is not a hembig concept, we suggest that it is potentially at risk of becoming one. In light of this discussion, we identify the importance of conceptual clarity in the use of social impact within accounting research and practice, given the potential for conceptual ambiguity.

The editorial aims, which are reflected in this special issue, are not only to stimulate qualitative research on accounting for social impact but to also encourage further critical engagement with the concept and its use. We suggest that the concept of social impact and its use within accounting research and practice would benefit from further conversations and critical reflection.

We consider the concept of social impact within accounting in relation to the hembig concept.

To raise the quality of regulatory capital, Basel III capital rules recognize unrealized gains and losses on all available-for-sale (AFS) securities in Common Equity Tier 1 Capital (CET1). However, by examining the correlations between U.S. GDP growth rate, interest rates and regulatory capital ratios computed using Basel III regulatory capital definition for six U.S. global systemically important banks (G-SIBs) since 2007, this chapter finds that Basel III regulatory capital will enhance the pro-cyclicality of Basel III leverage ratio and Tier 1 capital ratio and their sensitivity to long-term interest rates. Therefore, Basel III capital standards may have significant implications for bank supervision and bank capital risk management in the near future. As banks will hold more high-quality liquid assets (HQLAs) as required by Basel III Liquidity Coverage Ratio (LCR), the weight of unrealized gains and losses arising from fair value accounting will increase in Basel III Tier 1 capital base, the consequent increase of pro-cyclicality in a bank’s regulatory capital ratios may distort the true picture of bank capital adequacy. If an expected loss approach (EL) is used as the provisioning model, such capital risk may be increased further. Moreover, as U.S. monetary policy has started tapering quantitative easing, long-term interest rates will increase inevitably. This may increase the negative impact of unrealized gains and losses on AFS securities on bank capital. As a result, it may be difficult for banks to maintain appropriate capital ratios to meet regulatory requirements and support business activities.

Prior studies show that accounting considerations related to executive compensation impact managerial incentives, which in turn can impact real investment. These studies, however, largely omit the role of one key incentive: the duration of executive compensation. This study addresses this gap by examining the impact of accounting costs on duration. The findings have important implications not only for the determinants of duration but also the potential role duration plays in incentivizing corporate investment.

This study exploits a plausibly exogenous increase in the accounting cost of option compensation under accounting rule FAS 123R to determine the impact of accounting considerations on managerial incentives and particularly the duration of executive compensation. Heterogeneity in firm-level exposure to the rule is exploited under a difference-in-difference framework. The sample comprises S&P 500 firms for the years 2002–2008.

The analysis shows that under FAS 123R, which increased the accounting cost of option compensation, duration is impacted more for affected firms than are delta and vega, two other key incentives highlighted in the literature. While duration, delta and vega are all highly intertwined making disentangling the individual impact of each incentive difficult, cross-sectional evidence suggests changes in research and development (R&D) spending are more likely attributable to changes in duration rather than vega or delta.

The evidence in this study shows how accounting considerations shape managerial incentives, particularly duration, and provides new insights into the relationship between duration and R&D spending.

The purpose of this study is to examine the extent to which using accounting as a multidimensional practice that encompasses technical, social and moral dimensions facilitates the instigation and advancement of a culture of sustainable development.

A qualitative approach was used to analyse the case of Waratah Coal Pty Ltd vs Youth Verdict Ltd – a dispute over a lease to establish a coal mine. The study draws on Carnegie et al.’s (2021a, 2021b) multidimensional definition of accounting and the Carnegie et al.’s (2023) framework for analysis to explore how different parties drew on accounting concepts to support their position over the sustainability of the mining lease proposal.

A multidimensional perspective on accounting appears to have clear transformative potential and can be used to champion a culture of sustainable development. This approach also has broad societal, environmental and moral implications that transcend Western financial metrics. This study shows that relying solely on accounting as a technical practice to pursue economic benefits can result in contested arguments. Overall, this analysis illustrates how the wider public, and notably First Nations communities, might challenge accounting methodologies that marginalise cultural and social narratives.

This paper expands accounting research by demonstrating how fully embracing accounting’s capacities can create a space for hearing multiple voices, including those silenced by Western accounting practices. Specifically, this study presents a unique case in which the authors incorporate the voices and views of those affected by accounting-based decisions.

The paper aims to explore the impact of the transition to International Financial Reporting Standards (IFRS) on Greek listed companies' financial statements with a focus on net profit, shareholders' equity, gearing and liquidity. It also seeks to examine any differences in the impact across the sub‐samples of companies with Big 4 and non‐Big 4 auditors.

In line with recent literature, the paper employs Gray's comparability index. The sample consists of 238 Greek companies, representing 75 per cent of the companies listed on the Athens Stock Exchange at the end of March 2006.

Implementation of IFRS had a significant impact on financial position and reported performance as well as on gearing and liquidity ratios. On average, impact on shareholders' equity and net income was positive while impact on gearing and liquidity was negative. Only companies with non‐Big 4 auditors faced significant impact on net profit and liquidity. They also faced a significantly greater impact on gearing than companies with Big 4 auditors. A large number of companies with material negative changes is identified, suggesting that transition to IFRS and the fair value option does not necessarily result in higher shareholders' equity figures. Many companies provided inadequate transitional disclosures. This is significantly related to auditor size.

The findings suggest that reporting quality has improved under the new accounting regime, especially for companies with non‐Big 4 auditors.

Prior literature indicates that the impact revealed in companies' reconciliation statements can have significant effects on users' decision making. On that basis, the study can stimulate future research and is relevant to standard setters and regulators.

This paper reviews studies that have examined how accounting information impacts commercial lending judgments. Issues discussed involve the usefulness of accounting data in lending decisions, effects of different accounting methods on lenders’ judgments, bankruptcy and default judgments, and decision processes pertaining to the use of accounting information in lending decisions. Additionally, the paper reviews the research on how audits and other forms of assurance influence commercial loan officers’ judgments. Topics include the way perceived auditor independence influences loan officers’ judgments, the impact of financial statement audits and audit opinions on lending decisions, how internal control reports and other CPA firm reports influence loan decisions, ways in which audit report disclosures and wording impact lending decisions, how perceived auditor quality affects lending decisions, and the effects of limited assurance engagements on loan officers’ judgments.

This paper aims to conduct an analysis of management research based on impact measures, with a focus on the accounting discipline and the environment theme. Using author and journal data as units of analysis, this study seek to determine the representation of environmental accounting researchers among the most cited accounting authors and the consideration given to environmental issues in the impact assessment of management journals.

This study collects and quantitatively analyzes the publications and citations of the 50 most cited accounting authors and run a principal component analysis on a collection of journal-centered indicators and rankings.

This study finds that – among the most cited accounting authors – environmental accounting researchers hold a relatively influential position although their research is mainly published in non-top-tier accounting journals. This study also documents that some environment-themed journals suffer from significant disadvantages in peer-reviewed journal rankings.

Environmental accounting researchers are likely to disseminate their research in other media than in top-tier journals. This may have an impact on the academic viability of this field.

Despite their strong connection to societal issues, some research themes could become understudied if journal rankings are not able to consider publication outlets in a more comprehensive way. There is a strong need for a broader consideration of scientific production, particularly in relation to its overall societal impact.

To the best of the authors’ knowledge, this is the first time an empirical analysis, combining author and journal data and documenting such findings, has been presented for publication. This study means to provide some descriptive insights into where environmental accounting researchers and environment-themed journals stand.