There will be some new regulations to the UK financial sector. And the government will make...
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There will be some new regulations to the UK financial sector. And the government will make changes to the UK Corporate Governance Code to bring effect to the proposed overhaul. These proposals have been made in response to the financial harms created by the collapse of "big business", with recent cited examples often including BHS (2016), Carillion (2018), Patisserie Valerie (2018) and Thomas Cook (2019), each of which became financially distressed not long after receiving clean bills of health from their auditors. With these reforms, the government intends to reinforce the UK's reputation as a world-leading destination for investment, and to set a golden standard globally for corporate governance, risk management and internal control, corporate reporting, and audit. The increased regulation, and the associated disclosure rules, will have the greatest impact on the profession for years to come. Many professional (tax) accountants will be affected by intergovernmental tax action to limit base erosion and profit-shifting. Additionally, because of greater public pressures and stakeholder expectations, social and environmental considerations are getting importance alongside economic concerns in contemporary organizations. Because of the widespread stakeholder concern and associated regulations toward social and environmental considerations, contemporary organizations are facing challenges to find sustainable solutions to deal with the complexity of integrating financial, social, and environmental performance. The regulatory concern for different social and environmental issues, along with the associated measurement and reporting complexities of these issues, has allowed accounting professionals to open their minds to the possibility that accounting has the capacity to change. The important implication is that all professional accountants will be expected to look beyond the numbers, which will, in turn, enhance collaborations among members of multiple professions, including accountants, doctors, lawyers, environmental scientist, sociologists, and so on. Required 1. Select any of the above collapsed companies and find out the role of professional accountant, if any, that may have led to that collapse? And what do you think that accountants could have done differently to protect the public interest? 2. Discuss how the accounting professionals should open their minds to the possibility that accounting has the capacity to change and look beyond the numbers regarding the social and environmental considerations There will be some new regulations to the UK financial sector. And the government will make changes to the UK Corporate Governance Code to bring effect to the proposed overhaul. These proposals have been made in response to the financial harms created by the collapse of "big business", with recent cited examples often including BHS (2016), Carillion (2018), Patisserie Valerie (2018) and Thomas Cook (2019), each of which became financially distressed not long after receiving clean bills of health from their auditors. With these reforms, the government intends to reinforce the UK's reputation as a world-leading destination for investment, and to set a golden standard globally for corporate governance, risk management and internal control, corporate reporting, and audit. The increased regulation, and the associated disclosure rules, will have the greatest impact on the profession for years to come. Many professional (tax) accountants will be affected by intergovernmental tax action to limit base erosion and profit-shifting. Additionally, because of greater public pressures and stakeholder expectations, social and environmental considerations are getting importance alongside economic concerns in contemporary organizations. Because of the widespread stakeholder concern and associated regulations toward social and environmental considerations, contemporary organizations are facing challenges to find sustainable solutions to deal with the complexity of integrating financial, social, and environmental performance. The regulatory concern for different social and environmental issues, along with the associated measurement and reporting complexities of these issues, has allowed accounting professionals to open their minds to the possibility that accounting has the capacity to change. The important implication is that all professional accountants will be expected to look beyond the numbers, which will, in turn, enhance collaborations among members of multiple professions, including accountants, doctors, lawyers, environmental scientist, sociologists, and so on. Required 1. Select any of the above collapsed companies and find out the role of professional accountant, if any, that may have led to that collapse? And what do you think that accountants could have done differently to protect the public interest? 2. Discuss how the accounting professionals should open their minds to the possibility that accounting has the capacity to change and look beyond the numbers regarding the social and environmental considerations
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1 Role of professional accountant in the collapse of BHS In the case of BHS the company was sold by Sir Philip Green for 1 to Dominic Chappell in 2015 BHS collapsed in April 2016 leading to the loss o... View the full answer
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10th Edition
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