Accounting Theory and Corporate Governance

Accounting Theory and Corporate Governance
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1ACCOUNTING THEORY AND CORPORATE GOVERNANCE
Table of Contents
Part A.........................................................................................................................................2
Part B..........................................................................................................................................4
Reference..................................................................................................................................11

2ACCOUNTING THEORY AND CORPORATE GOVERNANCE
Part A
Approaches Considered
BHP Billiton is devoted to uppermost level of presentation with applying an operative
corporate governance system. It has struggled to grow an effort philosophy that is founded on
the moral values, corporate truthfulness and high opinion or others (BHP Billiton, 2018). In
accord with ASX listing rule, BHP Billiton has obviously illustrious the parts as well as
accountabilities of the board as well as the organisation. The Board is chosen by the
stockholders and is steadily composed.
The business classical of Rio Tinto is planned to attain its considered determined as
well as principally attentions on transporting worth for its stockholders. Though, in the
current reasonable business atmosphere, it is very significant to that occupational model shall
be flexible by way of the active market situations and purchaser’s request. In other word,
commercial perfect not solitary requirements to emphasis on generating worth for their
clienteles but also on the association structure. Even though Rio is bringing additional worth
to its purchaser through mine of the Upcoming package, it absences to shape a considerable
association with the dealers and additional commercial associates lengthways with their
source chain. Henceforth, it motionless requirements to exertion on that to guarantee long-life
inflatable processes by means of their data aptitude organisation.
BHP Billiton
Chairman- Ken Mackenzie
CEO- Andrew Mackenzie
Percentage of Share hold by executive Directors- 25%
Rio Tinto

3ACCOUNTING THEORY AND CORPORATE GOVERNANCE
Chairman- Simon Thompson
Percentage of Share hold by executive Directors- 40%
Comparison of corporate governance principle between BHP Billiton and Rio Tinto
Principle BHP Billiton Rio Tinto
1. Role of Board
Members
All the directors’ effort
autonomously to deliver
impartial report to the
shareholders so that pure
and reasonable image of
corporation presentation can
be understood.
The board members are duly
discharging their
responsibilities.
2. Size of board The Board has 10 associates,
together with the CEO.
The board has 14 associates
without CEO.
3. Implementing ethical
decision making
Has maintained its ethical
standards to strive on its
value.
Rio Tinto has also
maintained its ethics to work
on its planned strategies.
4. Risk Management The risk management
disclosures need to be more
appropriate (Bhp.com. 2019)
The disclosure of risk
management in the annual
report are adequate and
proper (Riotinto.com. 2019)