1. Demonstrate an understanding of the nature of the corporate entity and be aware
of the concepts, statutory requirements and other authoritative influences that
underpin accounting and reporting in the Australian regulatory environment.
2. Explain the issues surrounding contemporary accounting controversies.
3. Evaluate solutions for accounting problems in diverse contexts using social,
ethical, economic, regulatory and global perspectives.
Research Based Report – Corporate Governance
As a new accounting graduate, you have just joined the financial reporting unit of a company.
Your company is listed in Australian Securities Exchange (ASX). The Chief Financial Officer
(CFO) approaches you with your first task.
In the last Board meeting, directors of your company are concerned about issues related to
reporting on corporate governance. It is particularly noted that the Corporate Governance
Council’s Corporate Governance Principles and Recommendations (the Fourth Edition) was
released on 27 February 2019 and takes effect for a listed entity’s first full financial year
commencing on or after 1 January 2020. Therefore, the Board decided to have a review of
relevant issues.
Based on the Board’s decision, the CFO asks you to prepare a business research report
addressed to the Board of Directors on the following three parts:
(1) Critically analyse complexities and key issues involved in TWO major changes in the
Corporate Governance Principles and Recommendations (the Fourth Edition). This recently
issued document can be found on the Corporate Governance Council’s website
(https://www.asx.com.au/regulation/corporate-governance-council.htm). (4 marks)
(2) Critically analyse to what extent corporate governance of your company can be enhanced in
response to EACH of the TWO major changes in the Corporate Governance Principles and
Recommendations (the Fourth Edition) that you identify in part (1). In your analysis, you should
refer to your company’s most recent Corporate Governance Statement. (7 marks)