Defining the Joint Cost in the Field of CSR and Disclosing it in the Financial Statements: An Initiative to Enrich the Thought of Accounting for CSR


  • Younis A. Battal Saleh


Joint Cost, Corporate Social Responsibility, Corporate Philanthropy, Accounting Disclosure, Accounting for Corporate Social Responsibility


Purpose: This study aims to establish a precise definition of the term ʺjoint costʺ in the field of CSR and discuss the issues of disclosing this cost in the financial statements.

Method: To raise a meaningful discussion about the meaning of joint cost in the field of CSR, through which an accurate definition can be developed regarding it, this study adopted the following concepts: 1) Overlapping CSRs; 2) The real sacrifice; 3) Independent legal personality; 4) Untargeted social or economic benefits; 5) Mixed costs resulting from loaning fixed assets and providing non-material assistance such as advisory services, construction and maintenance works, etc. By adopting the possible behavior method and its supporting justifications, the researcher will discuss all expected scenarios regarding the disclosure of these costs in the financial statements.

Result: This study developed a precise definition of the term ″joint cost″ in the field of CSR. This study provided a meaningful discussion on the issues of disclosure of this cost in the reports and financial statements. Also, this study identified three basic principles for achieving transparency when disclosing charitable activities that include a joint cost.

Originality /Value: This study is considered an enrichment of accounting thought in the field of CSR. This study will enhance the capabilities of companies in the field of disclosure of their commitment to CSR adequately and transparently. Also, this study is considered an invitation to international accounting organizations to issue their recommendations regarding how to disclose in the financial statements about charitable activities, especially those that reflect the concept of joint cost or whose costs are small but produce great benefits.

Author Biography

Younis A. Battal Saleh

HRM Of General Electricity Company "GECOL" In Benghazi-Libya


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How to Cite

Saleh, Y. A. B. (2023). Defining the Joint Cost in the Field of CSR and Disclosing it in the Financial Statements: An Initiative to Enrich the Thought of Accounting for CSR. The International Journal of Accounting and Business Society, 31(3). Retrieved from