Table of Contents
Definition of social balance sheet:
The social balance sheet is used to systematically record and document the social effects of the company's activities on its environment. In addition to the annual financial statements, it represents a decisive step in the direction of company-related accounting. To date, there is still no closed concept for this form of reporting in practice.
Representation for his social achievements
It is therefore up to each company to find the most appropriate form of presentation for its social services. In addition to the social report, which provides information on voluntary social benefits, the social balance sheet is of particular importance. It is advisable to design the social balance sheet in the following way:
In the inventory calculation, on the one hand, the social assets, z. B. Programs for the benefit of society, and social debts of the company to society on the other hand, are recorded.
In the income statement, the advantages for workforce and the environment expressed in monetary units can be recorded as social benefits and the disadvantages as social costs as flow variables. From this, a net social benefit or net damage can be determined as the balance.
Companies that publish their social balance sheet together with the management report usually have the entire work audited together. As far as the social balance sheet is published separately, there is no test obligation.