Financial Accounting Essay

1418 Words3 Pages

Businesses large and small, public and private, for profit and nonprofit organizations have keep financial recording. Collecting, recording and maintaining this information called accounting. Accounting function helps managers of organization to make decisions and planning and for moving an organization forward in a financially sound manner and it helps to increase transparency of the companies.
This is an analytical report written for Contemporary Issues in Financial Accounting Assignment given to us based on Dilemma. The analysis is mostly focused on the Charities Vs Public listed Companies and its differences affect their respective governance structure. The report will also include Importance of Transparency, Voluntary and Mandatory disclosure, environmental risk management and possible challenges when reporting Financials under IASB Conceptual framework and how these challenges might overcome. The report it includes how a Non -Executive Board Member assist in addressing the apparent internal control deficiencies.

2. CHARITIES VS PUBLIC LISTED COMPANIES

A company is a form of a business organization. From them companies which are formed for non-commercial purpose such as charities. It is different in terms regulation with listed companies. Charities are not public companies. Therefore they are not subject to listing rules, depending upon countries rule, they may be subject to audit. They are recognized by country’s charity authority, to operate and receive the concessions that charitable statuses confess.
Charity Company often involves favorable tax treatment and different reporting requirements. Unlike them, listed companies are subject to all the provision of company law and listing rules that apply, such as committee s...

... middle of paper ...

.... They have satisfied themselves financial information produced is accurate of the financial control system of risk management as defensible.

In order to achieve agreed company strategy and objectives of Magey Foundation it is important to appoint non-executive director. They will play central role in strengthening performance of company and developing companies internal control strategies. NED can bring external knowledge and experience to the Magey Foundation. They can providing an external check on whether company strategy is appropriate and achievable. As non-executives members are Independence, they will helps to ensure that board and sub-committee decisions are acceptable to shareholders or not. To safeguard the assets of the Magey Foundation,it is necessary to ensure they are optimally utilized and protected from misuse, fraud and misappropriation or theft.

Open Document