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FINANCIAL REPORTING AND ETHICSBoards and DirectorsRisk ManagementAuditing and AccountingInternal Audit (Assurance)Non – official matters:Reporting LossLabour Control RegulatoryEnvironment Profit (Legal and Institutional)Employment equityHuman capital, skillsSocial responsibilityTrainingCommunicate and ReviewMonitor and ReviewCompliance and EnforcementFigure 11.1 Holistic Corporate Governance ProfileSource: UnpublishedTutorialFigure 10.1 shows the “constituents/power points” of activities and offices of acompany which consolidate into the profile of a typical good corporategovernance.11.5.3 Benchmarking Governance Cases in PracticeWhat does the word ‘benchmark’ mean? The Chambers Dictionary (2003)defines ‘benchmark’ as “something taken or used as a point of referenceor comparison; a standard, criterion, etc.” From the definition statedabove, a ‘benchmark’ is, therefore, a measure below which performanceor expectation should not fall. It is a yardstick of efficiency or goaloptimization. When the concept is applied to governance cases in practicewhat is being addressed is the sustainability of congenital businessenvironment where there are order, discipline and strong ethicalstandards underlying the operations of a company. Implementing thestipulations of the Code of Best Practices in Nigeria, the Institute ofChartered Accountants of Nigeria (ICAN) Rules of Professional Conductfor Members and International Ethics Standards Board for Accountants(IESBA) Code of Ethics for Professional Accountants can be seen as‘benchmark’ or ‘standard’ of moral behaviour. However, other areas orissues to be examined include:216
CORPORATE GOVERNANCE(a)(b)(c)(d)(e)Boards of directors need not be set up where there is no legalobligation to do so, unless there is assurance that they will adddistinct value to the running of the affairs of the corporations. Ifthere is a board in place, the heart of its contribution is the role ithas to play in moderating the conflicts of interests among thevarious stakeholders;Board members should be experts in their various fields. Theyshould have deep knowledge of the finance, laws and regulationsand complexities of the company and the industry to which itbelongs. Board members who are deficient in expertise in thecore industry will not be effective partners in the process ofdecision making;There is the need to hire compensation or personnel consultants.The appointment should be handled by the board’s compensationcommittee and not the company’s human resources officer, forfairness. The consultants are likely to be objective andindependent, since they are from external sources, rather thanunduly favour top management. The consultants will most likelycome up with fair and reasonable remuneration packagespayable throughout the company;There should be formal evaluation of the managing director orchief executive officer on a yearly basis. The compensationcommittee of the board should have vital responsibility of annualreview of the succession plans for the senior management of thecompany, so that there will not be the personalisation of offices.Evaluating the chief executive officer by the board rather thanoutside agency assists him or her to preserve humility. This wouldotherwise not be achievable under the chief executive officer ofa sizeable company; andJust as with the chief executive officers, boards should conductperiodic review sessions of directors. With the assistance ofmanagement, directors from outside can evaluate the contributionof each of their members at, say, five yearly basis, after the firstappointment. Those who are underperforming should not be putforward for re-election.11.6 SCOPE, BACKGROUND AND CONCEPT OF CORPORATE SOCIALRESPONSIBILITY, CORPORATE AND OTHER SOCIAL RESPONSIBILITIES,AND LIMITS OF SOCIAL RESPONSIBILITY ACTIVITIESA school of thought believes that it is proper and sound for business organisationsto lend their support to worthy community assistance such as building schoolsand hospitals, equipping them with material logistics, or even employing the217
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FINANCIAL REPORTING AND ETHICS1.3.3
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ACCOUNTING AND REPORTING POLICIESsu
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ACCOUNTING AND REPORTING POLICIES(j
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ACCOUNTING AND REPORTING POLICIES(i
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ACCOUNTING AND REPORTING POLICIES2.
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3AMALGAMATION, ABSORPTION ANDRECONS
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AMALGAMATION, ABSORPTION AND RECONS
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4ANALYSIS AND INTERPRETATION TION O
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ANALYSIS AND INTERPRETATION OF FINA
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5ACCOUNTING STANDARDS5.0 LEARNING O
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ACCOUNTING STANDARDS(i)(ii)(iii)(iv
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ACCOUNTING STANDARDSThere is no SAS
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ACCOUNTING STANDARDS5.2.4 Borrowing
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ACCOUNTING STANDARDS(iii)Certain pe
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ACCOUNTING STANDARDSby venture capi
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ACCOUNTING STANDARDSIFRS 7 Financia
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ACCOUNTING STANDARDSactivity, non-c
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ACCOUNTING STANDARDSin the year inc
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ACCOUNTING STANDARDS(v)(vi)(vii)whe
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ACCOUNTING STANDARDS(v)Actions requ
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ACCOUNTING STANDARDSAccounting stud
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6ETHICAL FRAMEWORK, CONCEPTSAND VAL
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ETHICAL FRAMEWORK, CONCEPTS AND VAL
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7THE ENVIRONMENT: CORPORATE,PROFESS
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THE ENVIRONMENT: CORPORATE, PROFESS
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Page 165 and 166: THE ENVIRONMENT: CORPORATE, PROFESS
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Page 177 and 178: PROFESSIONAL ETHICSabout conflicts
Page 179 and 180: PROFESSIONAL ETHICS(d)(e)Confidenti
Page 181 and 182: PROFESSIONAL ETHICSA. III onlyB. II
Page 183 and 184: 9DECISION MAKING IN ETHICS9. 0 LEAR
Page 185 and 186: DECISION MAKING IN ETHICS9.2 A FRAM
Page 187 and 188: ETHICAL THREATS AND SAFEGUARDS(d)We
Page 189 and 190: DECISION MAKING IN ETHICS4. A perso
Page 191 and 192: 10ETHICAL THREATS TS AND SAFEGUARDS
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Page 195 and 196: ETHICAL THREATS AND SAFEGUARDSto th
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Page 201 and 202: ETHICAL THREATS AND SAFEGUARDSimmin
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Page 207 and 208: 11CORPORATE GOVERNANCE11.0 LEARNING
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Page 219 and 220: CORPORATE GOVERNANCE11.6.1 The law
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Page 223 and 224: CORPORATE GOVERNANCEimitated. They
Page 225 and 226: CORPORATE GOVERNANCE(a)(b)Greenbury
Page 227 and 228: CORPORATE GOVERNANCE11.9.2 Boards d
Page 229 and 230: CORPORATE GOVERNANCErelationship wi
Page 231 and 232: CORPORATE GOVERNANCE(e)(f)(g)(h)(i)
Page 233 and 234: CORPORATE GOVERNANCE(vi)Inquisitive
Page 235 and 236: CORPORATE GOVERNANCE(e)ConsultancyA
Page 237 and 238: CORPORATE GOVERNANCEThe incoming au
Page 239 and 240: CORPORATE GOVERNANCEIn summary, acc
Page 241 and 242: CORPORATE GOVERNANCEAccording to Th
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Page 245 and 246: 12SOCIAL AND ENVIRONMENTALISSUES IN
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SUGGESTED SOLUTIONS TO REVISION QUE
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APPENDIX IICOMPREHENSIVE QUESTIONS
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COMPREHENSIVE QUESTIONS AND SUGGEST
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APPENDIX IIICASE STUDY 1Karsashi, a
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CASE STUDIES(iii)(iv)The floor sale
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CASE STUDIESShare price and dividen
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CASE STUDIESSUGGESTED SOLUTION(A) A
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CASE STUDY 3The following informati
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CASE STUDIESCASE STUDY 4Ologobojo i
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APPENDIX IVTable 1:SUMMARY OF INTER
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SUMMARY OF INTERNATIONAL ACCOUNTING
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APPENDIX VGLOSSARY OF TERMSAbsorpti
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GLOSSARY OF TERMSEthical Objectivis
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APPENDIX VIBIBLIOGRAPHYChambers Ham
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APPENDIX VIISTUDY AND EXAMINATION T
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STUDY AND EXAMINATION TECHNIQUES7.3
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INDEXAAbsorption, 17, 19, 39, 40, 4
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INDEXProfessional Behaviour, 136, 1
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