Accounting Disclosures In Context Of Corporate Governance - Coursework Example

Firstly, the framework of corporate governance should ensure that timely and accurate disclosures are made on all material matters. These matters relate to the financial situation of a company, its performance, ownership, and governance. This principle ensures that an entity will disclose all material information in its financial statements that will be used by shareholders or prospective clients to make decisions. Secondly, the corporate governance framework should ensure the strategic guidance of the company, the effective monitoring of management by the board and the board's accountability to the shareholders.

This means that management will always be on their toes to ensure that the operations of the company are well coordinated since the board of directors monitors them. Hence, appropriate disclosures are likely to be made due to the oversight role of the board. In conclusion, the attempts that have been made to improve accounting disclosures have been beneficial to the business world. According to Oppermann, this is because; various stakeholders have attained their goals through appropriate disclosures.

Through corporate governance, managers have taken more responsibility and accountability in their roles in businesses as well as the board of directors. In overall, the public has gained more confidence in financial information published by companies, as they are aware that disclosures have been made guided by corporate governance principles and the accounting standards.