Accounting and accountability in the European Union context

Accounting and Accountability are “old” terms that are continuously affected by new global trends. In academia and business context they can be used in many different forms. As Accounting can be seen as a social and moral practice and Accountability as a “responsible” form of accounting, the recent changes in the European Union legislation are transforming Accounting and Accountability. Large companies are required to change their reporting policy by implementing Environmental, Social and Governance (ESG) issues. This regulatory challenge is determining a new scenario that can imply a substantial new approach on corporate reporting by large companies with relevant consequences for Small and Medium Enterprises (SMEs). The chapter aims to investigate such changes by analysing the main features of the EU standards for sustainability reporting that are influencing both Accounting and Accountability concepts. In this perspective, the interoperability among different rules and standards and more integration and connectivity between financial and non-financial (sustainability) reporting is the desired output.