Advance Financial Accounting Essay Example

The main purpose of the article is to highlight that the board of directors of Feltex didn’t commit any criminal guilt because they acted fair. The board of directors didn’t breach the Financial Reporting Act as they disclosed all the information and had no intentions to commit fraud. Even the information provided in the fianancial statement was true and correct and there was no instance which highlighted that the director committed a criminal crime hence are set free.

The article deals with the current issue of financial reporting. The article presents the difference in financial reporting among nations and highlights the importance of having a strong financial reporting act so that people who misuse the information can be held guilty and the investors protected.

The article highlights the importance of financial reporting especially for global companies. This makes it important that the companies adopt the Sarbanes Oxley Acyt which ensures that the information is signed by the CEO and CFO stating it to be correct. The author also highlights the importance of having more independent directors but it should be ensured that they are monitored so that they act in a fair way. The author also presents the manner in which financial reporting differs in US and Australia. The article presents the manner in which the people of New Zealand reacted to the decision made by the court in relation to Faltex and felt that the decision made by the court didn’t consider the impact if was having on the lifes of the peopl and reacted to it. A situation like the one committed in Faltex would have found someone responsible in US but was not the case in Australia. This made investor loose money and no one was held responsible thereby not adhering to the corporate governance norms. The author states the importance of having uniform reporting standards so that the board of directors act in a responsible manner and ensure that information provided by them are true and fair. The role of audit committees needs to be enhanced so that all information can be verified so that responsibilities can be fixed and the people on the board who look towards using information to their advantage can be held guilty.