Accounting: the expanded

CHAPTER FIVE

Social Accounting and Reporting for Economically Targeted Investments: The Expanded Value Added Statement¹⁵

Introduction

This chapter presents a social accounting model called the Expanded Value Added Statement for reporting the economic, social and environmental impact of an organization in order to assist with economically targeted investment decisions. After providing an introduction to economically targeted investments and social accounting, the chapter outlines the Expanded Value Added Statement, which is applied subsequently to an economically targeted investment based on a real estate development undertaken by Concert Properties Inc., unique because it is owned exclusively by union and management pension plans. As explained below, although the economically targeted investment and the real estate firm exist and are described using the best information available, elements of the data used in the Expanded Value Added Statement had to be estimated.

This case, like the others referred to in this thesis to demonstrate the utility of the Expanded Value Added Statement, addresses two questions: 1) How can economic, social and environmental impacts of an organization be quantified to be included in an accounting model? 2) How can an organization’s contribution to/detraction from sustainability (quality of life and environmental health) be reflected in an accounting


¹⁵ A version of this manuscript has been accepted for publication in J. Quarter, I. Carmichael, & S. Ryan (Eds.), The Socially Responsible Investment of Pension Funds, University of Toronto Press.
model? The contribution in this particular case is to evaluate a range of social and environmental impacts over a period of ten years through the lens of the Expanded Value Added model.