Assignment questions
1. Discuss the purpose of a double-entry bookkeeping system.
2. Differentiate between financial and management accounting. Give an example of how management accounting reports would be incorporated into financial accounting reports.
3. BHP Billiton Ltd includes a sustainability report in its annual report. What key performance indicators are included in this report? Explain the different stakeholders that would be interested in this information.
4. ‘Complying with the law will always mean that you are acting ethically.' Discuss this statement.
5. Comment on the following situations in relation to the ASXCGC corporate governance principles and recommendations.
a. A member of a board of directors insists on being involved in the employment of personnel.
b. The auditor of a company is the brother-in-law of one of the company's directors.
c. The XYZ company ensures that as much information as possible about the operations and financial affairs of the company is made available on the company website.
d. The chairman of the board puts forward a proposal to remunerate the CEO. A member of the board questions the proposal, giving the opinion that ‘in comparison to similar size entities, it seems excessive'.
e. A board member is a major shareholder of a company that has tendered on a contract worth millions of dollars. When the board meets to consider the tenders received, the board member declares that she has a conflict of interest, and leaves the meeting room while the tenders are being discussed.