Custom Essay Writing Services-reflective journal: earning management(accounting theory)

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Topic on the Reflective report :

Download and examine the 2016 annual report of any banking companies or Airlines industry in Australia from the www.asx.com.au. Or visit the respective company’s website you decide to select by googling.

Review the Corporate governance statement and
evaluate how successful you think the board structure Is likely to minimise earning. In particular, consider the board size, independence, and committees in places

Prepare a reflective report of your findings. I will put more information in the file.

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AUSTRALIA AND NEW ZEALAND BANKING GROUP

Student’s Name

Course

Professor’s Name

University

City

Date

Australia and New Zealand Banking Group

ANZ‘s statement of Corporate Governance

The corporate governance statement for Australia and New Zealand Banking Group (ANZ) provides a comprehensive overview of the company. It is quite detailed and informative in the sense that shareholders and potential investors get to know exactly of how the organization operates. The statement projects different roles and responsibilities of distinct entities in the company such as the board (Australia and New Zealand Banking Group, 2017, p.6). It explains of all the obligations vested in each member of the company. Besides, the statement briefly highlights some of its core values such as the company’s compliance with various rules and principles in its operation (Australia and New Zealand Banking Group, 2016, p.13).   The official expression is able to ensure the confidence of the stakeholders as it reflects high levels of accountability in the company.

ANZ Board Structure

The board structure of ANZ comprises of seven non-executive directors including one executive director, Shayne Elliot who is the Chief Executive Officer (CEO) and David Gonski who is the independent Chair (Australia and New Zealand Banking Group, 2017, p.2). Further, the board consists of 8 other directors, three of whom are females while the others are males (Australia and New Zealand Banking Group, 2017, p.2). ANZ’s board is highly bound to be successful in regards to limiting earnings.

According to Kao & Chen (2004, p.106), the degree of earnings management is negatively linked to the number of outside directors and positively associated with the size of the board. The larger the number of board of members the less efficient a board is since it becomes quite difficult to monitor each and every member. Moreover,   outside directors are in a position of being able to oversee the management of the business efficiently (Tanjung, Sutisna & Sudarsono, 2015, p.25). The number of outside directors and executive directors at ANZ is relatively balanced. Besides, ANZ has an Audit Committee which according to Kao & Chen (2004, p.96) it minimizes instances of financial fraud.  ANZ is highly likely to restrict earnings.  

References

Australia and New Zealand Banking Group. (2016). ANZ Annual Report. Retrieved from http://shareholder.anz.com/sites/default/files/anz_-_annual_report_2016.pdf

Australia and New Zealand Banking Group. (2017). Corporate Governance Statement. Retrieved from http://shareholder.anz.com/sites/default/files/anz_corporate_governance_171105.pdf

Kao, L., & Chen, A. (2004). The effects of board characteristics on earnings management. Corporate Ownership & Control1(3), 96-107. Retrieved from www.virtusinterpress.org/IMG/pdf/cocv1i3p9.pdf

Tanjung, M., Sutisna, S., Sudarsono, R. (2015). The Role of Good Corporate Governance In Minimizing Earning Management To Increase Value Of Firm. International Journal of Scientific & Technology Research4(9), 21-27. Retrieved from http://www.ijstr.org/final-print/sep2015/The-Role-Of-Good-Corporate-Governance-In-Minimizing-Earning-Management-To-Increase-Value-Of-Firm.pdf

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