Q1. Corporate Governance:
a) Define corporate governance. Read Loosey-Goosey Governance uploaded. What is good governance as mentioned/defined in the article? Can good governance characteristics be listed and checked for companies? Explain.
b) Choose one country from the following countries: France, Germany, India, Singapore, Brazil, China, and South Korea. Identify two similarities and two differences between the US and your chosen country.
Q2. Cops on the Beat
You were introduced to sustainability standards (SASB — https://www.sasb.org/) in class.
a) Why have sustainability issues become strategically important to managerial decision-makers?
b) As a managerial decision maker, how would you convince the other C-Suite members to adopt the SASB standards by the company? Provide details.
Q3. Earnings Quality & Management
Managers and accountants regularly rely on accounting policies that utilize subjective decisions to make estimates when booking various accruals, reserves, and transactions. In some cases, creative accounting leads to misleading performance and a variety of fraud. As we have learned, revenue recognition is the most common misreported financial figure.
We reviewed various frauds in class especially those involving revenue recognition issues.
a) Describe types of normal manipulation of revenue utilized by managers to boost financial performance and how it impacts earnings.
b) Why it is important to discourage this practice – even if the revenue recognition methodology is may be considered legitimate?
