Corporate Governance Accounting Question Answer 2022

Running head: ACCOUNTING
ACCOUNTING
Name of the Student
Name of the University
Authors note

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Table of Contents
Answer 1 (a) Corporate Governance...................................................................................2
Answer 1(b) Decision-Making............................................................................................3
Answer 1(c) Poor Corporate Governance and Ethical Decision Making............................3
Answer 2 (a) The Statement of Cash Flows differs from the Statement of Profit or Loss..4
Answer (b) The three main business structures...................................................................4
Answer 3 (a) Annual Report................................................................................................6
References............................................................................................................................8

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Answer 1 (a) Corporate Governance
Corporate governance: - These are government bodies, which look into business aspects
of the companies by having rules, the regulation which has to abide by the laws and
implementation as per the required features in operation, regulation. It has the two most
important subjects' external and internal factors. It has certain taxes involved in corporate
governance to enforce profitability maintenance. There is certain CSR activity that has been
enforced by the governance body, which is corporate social responsibility, the allocation of the
funds to serve the purpose in the community to help the needy or the non- government
organization social responsibility. Corporate governance is not politics; they are just framed
works to administrate processes, people, purpose, and performance(Zadjuli and Shofawati 2020)
 APES 110 code of professional conduct: Accounting Professional and Ethical
standards board limited, It applies for the members who are Certified, public
accountant. It was established in the year 2006. All types of business activities
have been considered to be checked as in go to the organization and proceed with
the auditing to find the anomalies within the organization. The financial statement
is one of the most important checks which are done depending on the assets and
risk factor which could involve in the fellow citizen. There is an internal and
external auditing procedure that worked out. Policies and procedures for
independent management determine the level of hierarchy remuneration of senior
management. Every organization can make mistakes to follow steps to reduce
mistakes certain systematic policies have to be followed. This reduces the risk
factor and provides some certainty in an uncertain environment.

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Answer 1(b) Decision-Making
This was not a failure of corporate governance and ethical consideration. There could be
few factors FAA was taking a risk by approving 737 max; plane crashes a maximum number of
times happens because of the pilot; the checklist was it followed as per the standard procedure.
There is another factor here that a plane stays on the air for about 6000 miles tested before it has
become an airbus for fellow travellers. 737 max already had an issue before it crashed in
Indonesia. Where is the black box? After all, it is concealment. The issue was at the time of take-
off; there was an advance device that helps the plane to take-off. Still, it could be said that rather
than going upward the plane predicted to go down this lead to confusion in the stability of the
plane and went downward, It could be said that this is a system failure or shape changes made on
the plane. The major occurrence for this miss hap could be frugal trying to create an economical
plane. The new planes are designed to be fuel-efficient, which helps the Aviation industry to
make flights have decreased the cost of the ticket. Still, they wanted to sustain in the market by
reducing its operating cost by living in a complicated world; it all went wrong by advancement
and limited tests.
Answer 1(c) Poor Corporate Governance and Ethical Decision Making
Bhopal (India) world's worst industrial disaster. It had exposed to methyl isocyanides gas.
The gas had escaped from the factory, which was about 40 tons. Failure of governance was for
few reasons the pesticide incident was in residential, CEO of Union carbide company was in
Bhopal at the time of its disaster and got the full support of the government to escape rather than
holding him accountable on the error he had made killing near half a million people. After this
disaster, evolutionary laws have been and introduce, which determines the obligations and
responsibilities of corporates to follow regulatory bodies(Banai, Paul and Elikwu 2017).

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Answer 2 (a) The Statement of Cash Flows differs from the Statement of Profit or Loss
Statement of Profit and Loss: A pattern of accountancy which provides the Net profit
or Net loss in a business environment it relates to operating and overheads in the business if
tackled could have hefty profits(Reid and Myddelton 2017).
Statement of changes in equity: Every business starts with Capital; it is a building block
of every organization basis on the past business and is prepared to identify cause or factors of
owner's equity(Kaschuk 2017).
Statement of Financial position: A balance sheet is one of the most important
statements in the organization because it has two major outcomes Assets and Liabilities of the
business (Kioko and Marlowe 2016).
Statement of cash flows: Cash flow is the monetary fund required for administration,
operation, petty expenses and other expenses without which business can come to a halt(Arnold,
Ellis and Krishnan 2018).
Statement of Cash flows differ from Statement of Profit and loss: Profit and loss
statements are useful for long-term financial purposes, whereas cash flow statements are more
suitable for short-term practice(Easton, Vassallo, and Weisbrod 2016).
Answer (b) The three main business structures
Business
Structure
Definition/About Finance Advantage Dis-advantage
Sole Trader The sole trader is Friends, The owner Limited

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one single owner
of his company.
He is responsible
for all decisions.
Raise funds by
relatives, own
saved income.
Relatives,
Personal
saving
takes its own
business
decisions.
The owner
keeps its
profit.
liability and
loss are
entirely taken
care of by sole
traders.
Partnership Two or more
person who has
agreed to join in
hands to work
together for one
company by
sharing risks,
capitals, and
management are
called partnership
company.
The fluctuating
capital method,
Fixed Capital
method
Unlimited
liabilities and
reduce the risk
factor of the
organization.
At the time of
profit, the
adjustments
are made by all
the partners
together.
Company Company or a firm
that requires land,
labour, Capital,
organization. A
business increases
Investment
banking, Initial
public
offering,
Relatives,
It is a separate
legal entity.
It falls into
massive debts
or liability
traps if sales

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and maximizes
profit.
Friends,
Primary
market,
secondary
market.
fall.
Answer 3 (a) Annual Report
There are certain aspects that we have to understand all of the business decision for future
planning was done based on just 2012 – 2015; this was when we recovered from the financial
crisis. Bank was bringing in significant changes in regulation by creating risk control apart from
having 393 stores in New Zealand alone and 351 stores in Australia there were still 15-20 stores
annually opening wit out a historical data or forecasting. Given that the top-level hierarchy had
good pay, it was still a question whether they were statistically analyzing if they had gone wrong
within the system of doing business. NPAT increased by seven times from 2014, and EBITDA
increased three and half times, which shows the volatility in the financial statement, which
showed good numbers because we were still an era where retail was doing better. Still, the
internet industry was making a profit of
2000%(www.asx.com.au/asxpdf/20150818/pdf/430kvhrl8cpg0l.pdf, 2020).
Inventory: Inventory were had increased to 309 million debts increased to 70 million
and net debts up to 41 million. There were issues since the products which were both by the

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business it had exchange value in currencies since there were a currency difference and some
miscellaneous or incandescing expenses, which led to certain losses in the company.
Cash flows: The ratio of sales and payment to suppliers was 1:14 in millions; they were
facing a sharp decline in sales from the year 2014 to 2015.
Suppliers: The suppliers increased as the demand increased, but it should have
strategically should have been sustained. The currency changes and receipt of products that were
not closely looked upon, which could lead to suppliers playing a hiding game or even charging
more.
Borrowing: The Net debts 41 million should have been curbed, but it plummeted, 70.5
million loans and borrowing. Borrowing increased two and half times more from 2014 to 2015,
which went from tens of thousands to a hundred thousand dollars, and repayment of borrowing
was not done in the year 2014. It was about -26.5 for the repayment of borrowings.

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References
Arnold, A.G., Ellis, R.B. and Krishnan, V.S., 2018. Toward effective use of the statement of
cash flows. Journal of Business and Behavioral Sciences, 30(2), pp.46-62.
Banai, G.A., Paul, A. and Elikwu, M., 2017. EFFECTIVE CORPORATE GOVERNANCE
AND ETHICAL FINANCIAL REPORTING IN NIGERIAN DEPOSIT MONEY
BANKS. PROCEEDING BOOK.
Easton, P.D., Vassallo, P.B. and Weisbrod, E.H., 2016. Accounting earnings, change in market
value and cash flows. Change in Market Value and Cash Flows (February 28, 2016).
Kaschuk, O. P. (2017). THE EQUITY FIGURE IN ACCOUNTING.
Kioko, S., and Marlowe, J. (2016). Financial Statement Analysis. Financial Strategy for Public
Managers.
Reid, W. and Myddelton, D.R., 2017. Profit and loss account and balance sheet. In The Meaning
of Company Accounts (pp. 14-14). Routledge.
www.asx.com.au/asxpdf/20150818/pdf/430kvhrl8cpg0l.pdf, 2020. [online] Asx.com.au.
Available at: <https://www.asx.com.au/asxpdf/20150818/pdf/430kvhrl8cpg0l.pdf> [Accessed 7
April 2020].
Zadjuli, S.I. and Shofawati, A., 2020. Implementing good corporate governance in zakat
institution. Bussecon Review of Social Sciences (2687-2285), 2(1), pp.27-37.