Analysis of BHP Billiton ltd and Rio Tinto ltd operations in mining sector

Running head: COMPANY ACCOUNTING
Company Accounting
Name of the Student:
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Author’s Note

COMPANY ACCOUNTING
1
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Conclusion.......................................................................................................................................6
Reference.........................................................................................................................................7

COMPANY ACCOUNTING
2
Introduction
The main purpose of the assessment is to consider the business of BHP Billiton ltd and
Rio Tinto ltd which are engaged in mining industry and has operations relating to extraction of
minerals and natural resources rom the surface of the earth1. The focus of the assessment is on
the corporate governance practices which is followed by both these companies and whether the
same are appropriate. The discussion would also make a comparison regarding which company
has a better corporate governance structure and has appropriately reported the same in their
annual reports for the current year.
Discussion
Corporate Governance can be defined as the set of rules and responsibilities which are
clearly established by the company so that the operational process of the business can be
conducted in a smooth fashion. The corporate governance principles which are to be followed by
a business needs to be appropriate and the same needs to be compliant with the regulations which
are already established2. The corporate governance principles which are required to be followed
are laid out by eight principles which companies are expected to follow for the purpose of
ensuring that proper corporate governance principles are followed.
BHP Billiton Ltd
The business of BHP Billiton ltd is dedicated towards maintaining sustainability in its
approach while conducting the operations of the business. The company follows the Corporate
Governance principles which are set out by ASX Council. The responsibility of managing the
1 "Annual Reporting 2018". 2019. BHP. Accessed September 29 2019. https://www.bhp.com/investor-centre/annual-
reporting-2018.
2 Tricker, RI Bob, and Robert Ian Tricker. Corporate governance: Principles, policies, and practices. Oxford
University Press, USA, 2015.