Download file to see previous pages...
The emergence of the concept of corporate governance can be attributed to certain events in the recent past which have shaken the business world. Accounting frauds such as Arthur Anderson, Enron, Satyam and World Com etc in the last decade resulted in loss of shareholder in the way the companies are governed. These disclosures along with the dot com bust which itself had its own share of corporate mis-governance made people loose confidence in the stock markets and the way that the companies are governed. The resulting market fall along with the tremendous impact on the society (loss of jobs, and damage to customers, and financiers) made it necessary to have a systemic framework which shall define the working of a public listed company.
More recently, the financial slowdown of 2008-09 has once again raised concern over the governance of such large organizations. The greed to make profits while ignoring risks involved and the eventual loss to the society has made it necessary to have a strong board of directors which has the complete knowledge of the companys operations, policies and business. In a nutshell, the following reasons can be listed for the growth in importance of Corporate Governance:
There have been many steps in setting out the standard for safeguarding the interests of the society and stop the occurrence of happenings like the Enron, Maxwell Communications and so on. Amongst the first one was the Cadbury report titled “Financial Aspects of Corporate Governance” published in the year 2002 (The Committee on the Financial Aspects of Corporate Governance, 1992). Subsequent standards were set up in the form of OECD Principles of Corporate Governance in the year 1999 and the Guidance on Good Practices in Corporate Governance Disclosure.
British Airways (BA) and British Petroleum (BP) are the two large UK plcs that we will be comparing for the purpose of this paper. British
...Download file to see next pagesRead More
A number of weaknesses were exhibited in the banking sector, which contributed to the financial crisis including “excessive leverage, inadequate and low quality capital, and insufficient liquidity buffers” (Basel Committee on Banking Supervision (b), 2010, p.
The Managing Director is not keen on including Lease A in the books as a finance lease and, instead, wants it recorded as an operating lease. A new accounting standard that will replace International Accounting Standard (IAS) 17, which covers 'Leases', is due to be finalized within the year.
Corporate governance is undoubtedly fundamental in the organizational setting. Practices of corporate governance influence and inform the interactions and relations between various stakeholders within and across an organization or industry. This was well observed during the global financial crisis that led to the failure of banks in the UK.
It was because of this reason that the regulations such as Sarbanes Oxley were promulgated in order to make it mandatory for the organizations to have a certain degree of corporate governance mechanism within them. The failure of large institutions especially financial services
The study intends to focus on the attributes of corporate governance reporting practices that are prevalent in the Saudi listed companies. The study would primarily accentuate on whether the Saudi Arabian companies comply with the established corporate governance disclosure norms while preparing their annual financial reports.
ompanies aims are as follows: to identify compelling intellectual property-base opportunities in their key target sectors; to develop the identified opportunities into a diversified portfolio of robust businesses; to grow the assets on behalf of the third ;arty; and to provide
public shareholders) is thought of as a reasonable way to structure firms, and so long as decisions are made in the interests of the shareholders, efficiency is maximized.” [Acharya, Myers and Rajan, NY Stern School of Business]
In larger organizations like a public
7 Pages(1750 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Coursework in financial reporting & corporate governance for FREE!