accounting theory and cooperate governance ( question file attached )Major Assignment Question “Over...

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accounting theory and cooperate governance ( question file attached )

Major Assignment Question “Over the past decades, interest in corporate governance practices has increased as a direct result of highly publicised cases of corporate misconduct and concerns over the management of corporation” (Rankin et al 2018, p.202). It is also viewed that corporate governance suffers from being a multilevel concept which differs between the country (or economic) and individual levels. As such, there is an emergence of corporate governance reforms in various countries; which have created significant implications for auditors and increased responsibilities for accounting professionals. Students are required to obtain copies of recent (2018/2019) annual financial reports of two companies listed in the Australian Stock Exchange. The names of two sample companies for each group will be allocated to students in Week 3 of the semester. i.e. coles group and woolworths group Requirement: The Group Assignment develops students’ theoretical and technical skills in accounting theory and corporate governance as well as their written communication skills The Group Assignment is comprised of two parts: Part A: Case study using ASX listed Companies (10%) Part B: Essay - Written Assignment (1500 words) (15%) . Assignment Questions: There are two requirements for this assessment. Part A involves case study on the following questions (Max 500 words): 1. Identify and illustrate how the two sample companies disclose their corporate governance strategies, policies and practices. (i.e., approaches considered) 2. Compute the following corporate governance indicators from the collected annual reports for the selected two companies: a) Total number of directors (i.e., board size); b) Percentage of non-executive directors (if any); c) Percentage of independent directors (if any); d) The name of the Chief Executive Officer (CEO) and/or Chairman and the summary of his/her statement in the annual reports for the selected companies; e) Percentage of share hold by the executive directors; and f) Percentage of shares owned by the block-holders and institutional investors. 3. Compare the corporate governance indicators of the selected two companies and discuss the effectiveness, strength, and adequacy of the corporate governance practices and principles adopted by these companies. Part B involves writing an essay on Corporate Governance (1500 words). The essay is to be written on the role of corporate governance in accounting. Your essay should demonstrate a wide range of aspects of corporate governance including practices in relation to corporate failure, approaches to corporate governance, roles of ASIC and CLERP 9 in Australia, independent director, ethics and integrated reporting and its reflection of international perspectives and developments. You must incorporate academic and professional research including theoretical praxis in your essay.

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Sweta · Accepted Answer

Financial Analysis of BHP Billiton
                                                                                                                                                  May 29, 2019
Corporate Governance
Table of Contents
Part A. Case study using ASX listed companies	3
1. Identification of disclosure of corporate governance strategies	3
2. Computation of corporate Governance Indicators	3
3. Comparison of Corporate governance indicators	4
Part B: Role of Corporate Governance in Accounting	4
Reference List	8
Part A. Case study using ASX listed companies 
1. Identification of disclosure of corporate governance strategies
Coles group has presented its Corporate Governance as a separate webpage in the company website disclosing its Constitution, Board and committee charters including Board Charter, Audit and Risk Committee Charter, Remuneration Committee Charter, Nomination Committee Charter, Codes and Policies like code of conduct; diversity policy; Health, safety and wellbeing Policy; Risk Policy; Securities Dealing policy; Market disclosure policy; Environment policy.  (Coles group, n.d.)
Woolworths group has complied with Corporate Governance requirement through adequate disclosure in Annual reports and also released a 2018 Corporate Governance Statement which includes the details of the Board of directors, role of board, responsibilities, relationship of board and CEO, details of Chairman, the structure, skills and composition, evaluation of performance, appointment of directors, independence, professional development, remuneration of CEO, method of resolution of conflicts in interest, board committees, communication to shareholders. (woolworthsgroup, 2018)
2. Computation of corporate Governance Indicators
	 
	Corporate Governance Indicators
	Coles group
	Woolworths group
	a
	Total number of directors
	 Ten
	Eight
	b
	Percentage of non-executive directors
	 90%
	 Six directors out of eight director are non-executive. Hence the percentage is 75%
	c
	Percentage of independent directors
	 90%
	Seven directors out of eight director are independent. Only CEO wan no-independent, Hence the percentage of independent directors is 88%
	d
	Name of the CEO and/or Chairman and summary of his/her statement in Annual report
	 Michael Chaney is Chairman, R G Scott is the Managing Director. The Director’s report contain exclusive disclosure regarding all substantial matters regarding the company . (Coles group, 2018)
	Brad Banducci is CEO and Goldon Cairns is the Chairman of Board of Directors. The director’s statutory report states the Principal Activities, name of Directors and meetings attended, name and experience of company secretary, compliance to environment regulations, details of directors and officers indemnity insurance, the details of non-audit services paid to Deloitte, other matters like financial results, dividends, subsequent matters, directors shareholding, remuneration and auditors report. (woolworthsgroup, 2018)
	e
	Percentage of shares held by the executive director
	 .39%
	 4.36%
	f
	Percentage of shares owned by the block-holders and institutional investors
	 54.35%
	 59.13%
3. Comparison of Corporate governance indicators
The Annual Report for Woolsworth Group contains all the disclosure requirements under Corporate Governance also, there are corporate governance statement and also disclosure of plocies in its websites. (Woolworths group, n.d.)
The Annual reports of Coles group and the corporate governance principles laid down in the company’s website through an extensive insight into the company’s performance measures, the methods employed by the company in achieving its objectives and the director’s report and independence declaration. The composition, structure and functions of the Audit and Risk Committee have been discussed in light of the Audit and Risk Charter stated under Corporate Governance on the Company’s website.
Part B: Role of Corporate Governance in Accounting
Corporate Governance can be described as the framework of rules, systems and processes through which the Board exercises its authority and is a mechanism to control and make the company accountable for its actions. (ASX, 2019).

Major Assignment Question “Over the past decades, interest in corporate governance practices has increased as a direct result of highly publicised cases of corporate misconduct and concerns over the...

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