1. Introduction
Social and environmental accounting has been increasingly important in the organisation because the society has become more industrial-dominant since 1990s (Deegan and Unerman, 2006, pp. 317). Disclosure of social and environmental accounting has regarded as a core reporting method among organisations and it has been eventually separated from the statement of the financial position (Deegan and Unerman, 2011, pp. 385). In the late 1990s, triple bottom line reporting, which considers that economic, social and environmental areas are equally important (Elkington, 1997), but unfortunately, with the higher demand of more integrated reporting, it has been replaced (Deegan and Unerman, 2011, pp. 386). This responsibility also embraces the social and environmental reporting practices on the basis of the personal judgement (Deegan and Unerman, 2006, pp. 318).
Social and environment reporting can be defined as the process of the communication with particular stakeholder groups within society regarding the social and environmental impacts of the organisation (Gray, Owen and Maunders, 1987, pp. ix). It has been argued that the accounting standards which deal with this social and environmental sector appear to be somewhat meagre although there are some frameworks in terms of sustainability reporting (Gray et al, 1997). Hence, there may be some claims that an accounting standard regarding social and environmental issues needs to be established while others might think that the organisation may feel more comfortable to comply with current guideline from the association 'Global Reporting Initiative (GRI)' for sustainability reporting (Deegan and Unerman, 2011, pp. 389).
It is thought that accounting standard should not address the social and environmental part because a number of organisations currently follow frameworks with respect to this area (Gray et al,