The role of accounting in the collapse or failure of Allco - Essay Example

Only on StudentShare

Extract of sample
The role of accounting in the collapse or failure of Allco

Causes of the Collapse of Allco Corporate collapse of Allco occurred like many other collapses but reasons of other collapses had been different than with Allco, which collapsed due to duality of the positions of the chairman and the CEO, the two topmost positions in the company, i.e., one of the chairman and the other of the chief executive were managed by the same person, by late David Coe. Media identified Coe as the executive chairman although later Bob Mansfield was the chairman and David Clarke, the chief executive (Walters, 2013). Financial environment worldwide was particularly not conducive otherwise but Allco suffered from the deficiency in corporate mechanism as board of corporate governance behaved like a private company. Criticality of Board Independence Board independence is very critical factor in the scheme of corporate things. The Australian Securities Exchange (ASX) has very clearly advised not to lead the two roles of chairman and chief executive officer by the ditto person. There has never been any ambiguity over this recommendation. Freedom of the board has been from the very beginning the leading principle of good corporate governance, as defined in the preamble of ASX. This issue is linked to the sound health of the capital markets, which has been central to the Australian economy. ...Show more

Summary

Critically evaluate the role of accounting in the collapse or failure of Allco. Introduction The last decade of the 20th century and the beginning of 21st century has seen a number of corporate accounting scandals in Europe and the U.S., including Enron, HealthSouth, Parmalat, Tyco, WorldCom and Xerox…
Author : littelleora
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"The role of accounting in the collapse or failure of Allco"
with a personal 20% discount.
Grab the best paper

Related Essays

The role of accounting system in the UK for motivation
However, it was argued that not all of the firms that have adopted the said strategies have experienced the intended performance. It is because of this that recent accounting literature has suggested the importance of accounting systems.
66 pages (16500 words) Dissertation
Questionable Accounting Leads to The Collapse
They need to address the societal thoughts while developing strategic plans. But this implementation of new ideas is not easy as it is not just a single new constraint, in fact a whole lot of new constraints, restricting companies to stop doing a lot of things which they are used to in a global competitive market.
9 pages (2250 words) Essay
Post Financial Crisis: Role of Audit
The paper highlights expectation gap and the framework of extended audit which could make the auditor’s report more informative for the general public so that they can make more informed decision. The term expectation gap signifies the difference between the expectation of the some people who have knowledge about some particular thing and the expectation of the people who depends upon the knowledge of the former.
10 pages (2500 words) Essay
The role of accounting profession in development and regulation of modern capital markets since 1970s
The requirements of each profession are usually clearly defined in the laws regulating the relevant sector. In accounting, a similar practice has been used. Accounting profession, like all professions, is based on a series of ethical rules and standards set both by the law and the national organization related to the specific field (Solita and Fajardo 2008, p.2).
4 pages (1000 words) Essay
Accounting
Accounting Companies should be required to use the same accounting method for inventory. That would ensure that there is no exploitation of the customers because of the inventory methods that are been used by companies. The other advantage of that is the fact that there will be uniformity in the reporting of financial statements by the various companies.
3 pages (750 words) Assignment
FSAs Role towards the Collapse of Global Financial Services Industry
FSAs Role towards the Collapse of Global Financial Services Industry Introduction The collapse of the global financial services industry in 2007 is also known as global financial crisis. By mid 2007, the financial disorder with its rigorous liquidity and credit crunch seemed to detain to financial markets and institutions.
8 pages (2000 words) Essay
Managerial Accounting and the Role of Experiments
Managerial Accounting and the Role of Experiments A fundamental purpose of managerial accounting is aimed at enhancing the firm values through effective utility of scarce resources. This means that managerial accounting systems are supposed to provide information that improves the employee’s ability to make organizations have desirable decisions.
8 pages (2000 words) Essay
Financial Management and Accounting
An income statement usually represents the cash flow attributable to a business in the form of revenue obtained in the normal running of a business, and the expenses that result from the operations of a business. The income statement should be able to show
2 pages (500 words) Assignment
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT