Accounting Theory and Corporate Governance

Running head: ACCOUNTING THEORY AND CORPORATE GOVERNANCE
Accounting Theory and Corporate Governance
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Author’s Note

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ACCOUNTING THEORY AND CORPORATE GOVERNANCE
Table of Contents
Part A...............................................................................................................................................2
Corporate Governance Strategies and Policies............................................................................2
Important Corporate Governance Indicators...............................................................................3
Corporate Governance Features..................................................................................................4
Part B...............................................................................................................................................4
Reference.........................................................................................................................................9

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ACCOUNTING THEORY AND CORPORATE GOVERNANCE
Part A
Corporate Governance Strategies and Policies
The management of Qantas ltd is committed towards ensuring that no activity of the
business affects the environment. The business is engaged in proving airline services to the
clients and the company has made strong progress in reducing our overall environmental impact
(Qantas.com., 2019). The management of the company has appropriately set out targets such as
reduction in usage of power by 20% and reduction in waste generation by 30% by 2020.
The business of Bunnings which is one of the subsidiaries of Wesfarmers focuses on use
of Indigenous means for carrying out the operations of the business. The management is also
dedicated towards the needs of the society and therefore has made community contributions of
$147.5 million, including $86.6 million of direct contributions to community organisations. This
shows that the strategies of the business are formulated to maintain sustainable development in
the business.
Important Corporate Governance Indicators
a. As per the annual report of Qantas ltd for the year 2018 shows that the business has 12
members as board of directors of the business. The business pf Bunnings ltd also has 12
directors who are included in the board of director of the business.
b. The percentage of non-executive directors in the case of Qantas ltd is shown to be
maximum number of non-executive directors in the business which is more than 90%
while in the case of bunnings ltd shows that there are 75% of non-executive directors.
c. The annual report of Qantas ltd shows that there are 83.33% of directors who are
independent while business of Bunnings shows similar results for the business.

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ACCOUNTING THEORY AND CORPORATE GOVERNANCE
d. The CEO of Qantas ltd is Alan Joyce and he praises the company in the CEO letter that
the business follows appropriate steps for enhancing the value for the business and at the
same time also ensure safety and sustainable practices in the business
(Wesfarmers.com.au., 2019). The CEO further goes on about the recent success which
has been achieved by the business of Qantas ltd in terms of new route which is Perth–
London route which connects Australia and Europe. The management of the company
has also introduced Project Sunrise which would be connecting from the East Coast of
Australia to London and New York. In the case of Wesfarmers, the Chairmen of the
business is Michael Chaney. The chairmen message shows that the business has
undergone certain changes in structure for enhancing the shareholder’ return
(Investor.qantas.com., 2019). The chairmen provide the reasons for fall in net profit and
also states the commitment of the bossiness to return to its profit-making ways.
e. As per the annual report of the business, 45% of shares of Wesfarmers are hold by non-
executive directors. The non-executive’s directors of Wesfarmers holdings show similar
results.
f. The annual report does not show that the shares of either company are hold by any
institution buyer.
Corporate Governance Features
The corporate governance framework which is followed by both the companies shows
that the same follows the suggested framework of ASIC for the purpose of reporting the same in
the sustainable reports which is formulated by the business. The focus of both the companies is
to promote sustainability practices. The difference which can be spotted is that the management