Corporate Accounting

Running head: CORPORATE ACCOUNTING
Corporate Accounting
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Author’s Note

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CORPORATE ACCOUNTING
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Table of Contents
Part B: REPORT..............................................................................................................................3
Classification of Expenses...........................................................................................................3
Profitability and Stability Ratios.................................................................................................4
Future Growth Options................................................................................................................5
Commitment to Sustainability and Environment Protection.......................................................6
Key Uncertainties Relating to the Future....................................................................................6
Section 2..........................................................................................................................................7
Social Contract and Its Implications............................................................................................7
Stakeholders if the Banks............................................................................................................8
Organizational Legitimacy..........................................................................................................8
Alternative Strategies...................................................................................................................9
Reference.......................................................................................................................................10

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CORPORATE ACCOUNTING
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Section I
Part A. BOARD COMPOSITION
1. There are total nine independent directors which also includes the non-executive directors
of the business of BHP Billiton ltd in accordance with the annual report of BHP Billiton
Ltd of 2018.
2. There are seven male directors and three female directors in the board of directors of
BHP Billiton ltd
3. The three directors of BHP Billiton ltd along with their experience are provided below:
(i) Ken MacKenzie is the chairman of BHP Billiton ltd and he is also an independent
director of the company who has been the director of the company since 2016 and
chairman since 2017. Ken MacKenzie has extensive global and executive experience
and a deeply strategic approach, with a focus on capital discipline and the creation of
long-term shareholder value. Ken Mackenzie has vast knowledge and experience as
he was Managing Director and Chief Executive Officer of Amcor Limited before this
company (Bhp.com. 2019)..
(ii) Andrew Mackenzie who is one of the Director of BHP Billiton ltd. Andrew
Mackenzie has a bachelor of science degree along with PHD degree which makes
him qualified. Andrew Mackenzie has over 30 years’ experience, including in oil and
gas, minerals, strategy and capital discipline over long-term cycles, technology and
global markets. He was also the CEO of the company in 2013
(iii) Anita Frew who is the director of BHP Billiton ltd. She has done Bachelors in Arts
and also has a degree in science. Anita Frew has an extensive breadth of non-

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CORPORATE ACCOUNTING
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executive experience in diverse industries, including chemicals, engineering,
industrial and finance.
4. There are two subsidiaries of BHP Billiton ltd which are BHP Billiton Finance Plc and
BHP Billiton (AUS) DDS Pty Ltd
Part B: REPORT
Classification of Expenses
As per stated in AASB 101/IAS 1, the company or any kind of entity who is classifying
its expenses by function must disclose some more information on the nature of expenses, the
company must also explain about the depreciation and amortization of expenses and the
expenses which occurred while providing benefits to the employee. The company or the entity
should choice wisely the nature of expense methods depends on the historical data of the
organization and also the factors regarding the industry. It also depends on the nature of the
company or any kind of entity. The above-mentioned methods provide an indication of those
costs that vary indirectly or directly with the level of sales of production of the company or
organization or any entity. The two methods have their own benefits and the company should
choose wisely keeping in mind about the suitability factors. The information provided by the
entity on the nature of expense helps to predict the cash flow position of the company and
addition disclosure is required with the classification of expense is used. As per nature of the
company and the business done in the kind of industry the BHP Billiton ltd follows actual
expense method. After keeping in mind, the industry and diversity of the company, they should
stick with that method only because the in actual expense method is the claiming expense related