Developing Collective Intentionality and Writing the Rules of the Game for Environmental Reporting: A Content Analysis of SOP 96-1 Comment Letters

ABSTRACT Financial reporting operates in a changing social landscape. One focus of change in the contemporary social landscape is growing recognition of the impact of human activity on the natural environment, a significant part of which derives from economic activity. Evidence exists that financial statement users want environmental accounting information, yet it remains underdeveloped. This underdevelopment becomes notable because it is increasingly clear that long-term economic viability is wholly dependent on ecological sustainability. This study furthers our understanding of financial reporting, accounting standards, and the standard-setting process as institutional practices in the U.S. by exploring whether voices raising these emerging concerns find receptivity in accounting standards setting. Searle's (1995, 1998) work on constructing institutional reality provides the theoretical frame. Results add a layer of empirical analysis to prior accounting research using this frame to critique the opennes...