The Importance Of Corporate Governance

Corporate governance is concerned with maintaining a balance between the social and economic goals as well as between the communal and individual goals. The corporate governance framework of a company exists to effectively use resources and thus maintain accountability for the purpose of resource stewardship and thus align the society and individual corporation’s interests. Through corporate governance is appropriate to lay solid foundations for oversight for oversight and management. Further, a listed company should establish and disclose the board’s roles and responsibilities in addition to evaluation and monitoring performance. Moreover, the corporate governance gives the distribution of rights and responsibilities among different stakeholders

This aims to keep the management’s self-interests in check and thus ensure that there is no abuse of power at the expense of shareholders. Corporate governance is thus concerned with board commitment and shareholder rights, transparent disclosure, control environment, and good board practices. However, corporate governance is based on the pillars of independency, transparency, fairness, and accountability. The OECD stipulates the principles of corporate governance to entail the rights of shareholders, the equitable treatment of shareholders, the role of stakeholders in corporate governance, disclosure and transparency, and the responsibility of the

The appropriate changes have been made on the specific cross currency interest rate swaps with the appropriate recognition and amortization made to the income statement over the remaining life of the hedging instrument. The disclosure according to the AASB 9 has ensured that hedging funds are quoted in the appropriate foreign currency denominated borrowings with recognition of the fair value of the foreign currency being made. Further, the financial assets of the company are classified as subsequently measured at amortization costs depending on the contractual cash flow characteristics. Further, in the financial statements, the roles of directors are specified to show a separation and free of any interest, influence or association to a level that might influence the fairness of financial