AICPA and World Accounting Bodies Call for Single Standard for Climate Change Reporting

NEW YORK, Dec. 9 /The American Institute of Certified Public Accountants joined with 12 major accounting institutes around the world and The Prince of Wales Accounting for Sustainability Project in an open letter to political leaders attending the Copenhagen Convention on Climate Change. The letter calls for the development of universally accepted accounting standards that would provide relevant financial reporting information on climate change.

"The AICPA supports and endorses the call for a single set of accounting standards that measure and disclose climate issues to shareholders," said AICPA President and CEO Barry Melancon. "As demand for disclosure about climate change and other sustainability issues increases, universal standards -- such as the ones we're recommending now -- will reduce complexity and allow businesses and investors to make better decisions in the future."

The letter calls on policy makers to develop a single set of universally accepted standards for climate change disclosure in mainstream financial reports. The letter states that an independent, stakeholder-led body with appropriate links to public authorities should be established to develop and adopt the required accounting standards.

"Sustainability is a global issue," said AICPA Senior Vice President for Member Competency and Development Arleen Thomas. "Collaboration with other major accounting bodies in international groups like the Accounting for Sustainability Project is essential to success in providing thought leadership and influence in this emerging area."

The AICPA in 2009 joined with accounting leaders from around the world in signing The Prince's Accounting for Sustainability Project's principles that promote "connected reporting," that is, reporting that connects an organization's sustainability impacts and initiatives with its financial performance.

Many organizations are already reporting their climate change-related information to the Carbon Disclosure Project, a UK-based non-profit organization. In 2007 the World Economic Forum created the Climate Disclosure Standards Board which issued a proposed framework for climate risk-related reporting by corporations in May.

Members of the board and leading experts from the accounting profession will present highlights from the public consultation on the CDSB's draft reporting framework at a side event in Copenhagen on Thursday, Dec. 10.

"CPAs have an important role to play in sustainability," said AICPA Vice President for Business, Industry and Government Carol Scott. "In addition to their widely recognized expertise in measurement, accounting, reporting and assurance, CPAs in business are best able to connect the dots between strategy, risk, financial performance, and reporting," Scott added. "This is central to the principles of the Accounting for Sustainability Project and to the draft CDSB framework."

The 15 organizations signing the letter are:

Institute of Chartered Accountants in England and Wales (ICAEW)
The Prince's Accounting for Sustainability Project
The Climate Disclosure Standards Board
American Institute of Certified Public Accountants
Association of Chartered Certified Accountants
Canadian Institute of Chartered Accountants
Chartered Accountants Ireland
Chartered Institute of Management Accountants
Chartered Institute of Public Finance and Accountancy
CPA Australia
Hong Kong Institute of Certified Public Accountants
Institute of Chartered Accountants in Australia
Institute of Chartered Accountants of Scotland
Japanese Institute of Certified Public Accountants
South African Institute of Chartered Accountants
About the AICPA

The American Institute of Certified Public Accountants (www.aicpa.org) is the national, professional association of CPAs, with more than 360,000 members, including CPAs in business and industry, public practice, government, and education. It sets ethical standards for the profession and U.S. auditing standards for audits of private companies; federal, state and local governments; and not-for-profit organizations. It develops and grades the Uniform CPA Examination.

The AICPA maintains offices in New York, Washington, D.C., Durham, N.C., Ewing, N.J., and Lewisville, Texas.

Media representatives are invited to visit the AICPA Online Media Center at www.aicpa.org/mediacenter.