TopicTopicMPPaPbPcTopicMPPaPbPcAA1000 Accountability562Corporate Social Resposibility CSR Definition56AAA (American Accnting Association)129Corporate Watch519AAA (American Accnting Association)281Corporations Act136AASB136Corporations Act310Abbott17Correct advertising (employees)431Abuse of market power449Corruption (markets)485Accountability58COSO (Internal Control)355109Accountability AA1000562Criminal penalties442ACMAC Australian Corporations and Markets Advisory Committee56CSR Corporate Social Resposibility Definition56Agency and delegated powers344CSR critics592Agency costs345CSR Reporting, best practice, innovation571Agency theory3950Davenport215AICPA (decision tree)282Deegan5293Albrecht and Sack144Deegan (address climate change)591Allocation customers (Cartels, Markets)454Deegan (environmental management reporting)586Anglo-Saxon system (corporate governance)386Deegan and Ranklin (CSR, legitimacy)535Anti-competetive conduct449Dellaportas2587172APES 110 Code of Ethics1912Denning350APES 110 Code of Ethics212Deontological263APESB 2010112Dependency theory310APESB 2010212Dimnik and Felton144Aristotle266Directors and boards31013Asia (corporate governance system)392Discounting future cash flows544ASIC Act136Disqualification (board member)410ASX corporate governance principles and recommendations35872Diversity (boards)412Attributes of profession110Dodd, Merrick521Audit and regulation437Donaldson and Davies310Audit committee331Doucet and Ruland267Australian Corporations and Markets Advisory Committee ACMAC56Dowling and Pfeffer531Australian FRC (Financial Reporting Council)136Duff and Guo541Balanced Scorecard BSC3111Earnings management (business)245Bazerman215Eco-Balance566Beard, Smith and Briggs144EEO Energy Efficiancy Opportunities Act553Bebbington and Gray515Emissions582Becker117Empire buiding (agency costs)347Berle, Adolf521Employee governance433Best Practice CSR to address climate change591Employees429Biddle211Energy Efficiancy Opportunities Act EEO553Bid-rigging (Cartels, Markets)454Enlightened self-interest524Blanthorne144Entity assumption548Board appointments46Environmental management Reporting585Board chair319Environmental Reporting59Board departures47Equator Principles562Board of Directors310Ethical decision making (philosophical)265Bonding (agency costs)348Ethical decision making models280Bosch3313557Ethical egoism259Bosch47Ethical reasoning (Kohlberg)268Bribery (markets)485Ethics and failures135Brown37ETS554BSC Balanced Scorecard3111EU Emissions Trading Scheme554Buckley112European Commission audit reform222Buckley and Buckley110External auditors31038Business ethics26Externalities513Business governance37Failures (corporate)3107Business Roundtable356Fair pay and working conditions (employees)430Cadbury354Family and leave entitlements432CalPers356Fees (public practice)240CalPers492Fels, Alan (compliance)460Cap and Trade581Financial Interests (business)248Carbon Disclosure Project559Financial markets473Carey110Financial Services Council FSC Australia383Carnegie35France (corporate governance system)391Carnegie and Napier1933FRC (Financial Reporting Council)136Cartels452Friedman518CEC Commission of European Communities CEC (CSR)57FSC (Financial Services Council) Australia383CEO319Fundamental principles of prof conduct216Chinese walls223Fundraising documents (markets)483Churning (markets)482G20138Cicil penalties442Germany (corporate governance system)391CIMA3111GFC3100101CLERP 9 Corporate Law Economic Reform Program Act358GFC responses368CLERP9 Act136GHG The Greenhouse Gas Protocal564CLERP9 Act221Gifts Interests (business)248Climate change (CSR)516Global imperative (governance)352Climate change Accounting techniques580Global Reporting Initiative (CSR)556Climate change international initiatives (CSR)576Governing body119Coate, Mitschow and Schinski144Gray58Code of Ethics for Prof Accnts213Gray and Bebbington515Cognitive moral development (Kohlberg)268Greenbury354Collusion (markets)448Greenhouse Gas Protocal GHG564Combined Code354Greenwood110Commission of European Communities CEC (CSR)57Hampel report336Committees of the board31029Haque and Deegan591Competition (markets)445Harris3118Competition and consumer Act445Hazen and Broome412Competition policy (markets)445Health and Safety (employees)430Complaints255Higgs review354Components of corporate governance310Holme and Watts57Conceptual framework for ethical behaviour257Howes (CSR, NPI)552Conceptual framework (principles) approach230Human Rights into workforce (UDHR)138Confidentiality228ICGN International Corporate Governance Network356Conflicts of interest (business)244IFAC112212326Conflicts of interest (public practice)239IIRC Integrated Reporting (CSR)574Conformance36Improving environmental and social performance (CSR)588Consumer protection466Improving social and environmental performance (CSR)588Consumers and customers466Individual (decision making influences)271Corporate governance36Information and media (markets)474Corporate Law Economic Reform Program Act358Insider model (shareholders)489TopicMPPaPbPcTopicMPPaPbPcInsider system (corporate governance)386Protecting the financial market (markets)476Insider trading (markets)477Public Company Accounting Oversight Board221Insolvancy and liquidation3101Public Sector (corporate governance)3117Institutional Investors382Quality assurance253Institutional shareholders336Ramsay Report357Integrated Framework (COSO)3109Redress44244Integrated Reporting IIRC (CSR)574Regulation (markets)449Integrity216Regulations (CSR)548Integrity (reporting with)246Regulators31038Internal auditors31038Related party transactions251Internal Control (COSO)3109Relation based systems (corporate governance)38689International Corporate Governance Network356Remuneration and performance (directors)418International development timetable353Remuneration committee330International development timetable UK354Remuneration issues349International development timetable USA354Representation (shareholders)489Islam and Deegan (CSR, legitimacy)535Resale price maintenance (Cartels, Markets)457ISO 14000589Rights theory264ISO 26000589Risk avoidance (agency costs)347Issues traditional financial reporting544Risk management (corporate governance)3107Jeacle145Risk management committee330Jennings245Robson and Cooper18Jensen and Meckling3949Rogue trading (markets)486Justice theory264Role of markets473Kant263Runs (markets)482Kitchen-tabling260Russell211Kohlberg267Salomon371KPMG (CSR reporting survey)511Schein272Lampe and Finn271Schon118Leadership (corporate governance)3112Second opinions (public practice)240Legal compliance and governance459Service Ideal112Legal system440Shareholder primacy perspective521Legitimacy theory530Shareholder representations489Licence to operate (CSR)532Shareholder system (corporate governance)386Limitations traditional financial reporting (CSR)541Shareholders310Lindblom531Shocker and Sethi531Market based systems (corporate governance)38687Sikka135Market manipulation (markets)480SME (corporate governance)3116Marketing (public practice)243Smith and Briggs144Markets (financial)473Smith report354Mathews518Social Audits (CSR)568Mathieu (CSR, legitimacy)537Social contract531Mathison265Social contract perspective521MCA Minerals Council of Australia534Social Impact of Acc130Mele266Social Reporting59Mergers and acquisitions451Societal (decision making influences)277Miller132Soft skills, knowledge and experience143Milton Friedman518SOX221Minerals Council of Australia MCA534SOX33155Mintz210Spill Board spill48Misleading conduct (corporate behaviour)468SSKE143Mitchell24Stakeholder management527Monitoring (agency costs)348Stakeholder system (corporate governance)386Monks and Minow350Stakeholder theory - ethical branch529Moral Agency211Stakeholder theory - managerial branch528Motivations CSR522Stakeholders31040National Greenhouse and Energy Reporting Act NGER550Stakeholders (CSR)520National Pollutant Inventory NPI552Stereotypes (Accnt)144NGER National Greenhouse and Energy Reporting Act550Stewardship theory310Nomination committee330Stress in workplace275Not for profit organisations (corporate governance)3115Sustainability Reporting510NPI National Pollutant Inventory552Technical skills, knowledge and experience143Objectivity217Teleological258Occupational Health and Safety430Threats233OECD Guidelines for Multinational Enterprises555Time horizons (agency costs)347OECD Priciples of Corporate Governance35761Tinker and Niemark57Officers351Trade and Labour unions436Organisational culture, code of ethics (decision making influences)272Traditional financial reporting limitations (CSR)541Organisational legitimacy530Trucost (CSR)565Output restrictions (Cartels, Markets)453Tsahuridu215Outsider model (shareholders)489TSKE143Outsider system (corporate governance)386Two strikes rule4826PAIB (Prof Accnounts in Business)121UDHR (Human Rights)138PAIB (Prof Accnounts in Business)36Uhrig Report3118119Parker, Ferris and Otley132UK Financial Reporting Council Corporate Governance Code370PCAOB221UK FRC370Pecuniary penalty443UK FRC Stewardship code382Penalties and appeals256UN Global Impact560Penalties, proof, redress44244Unconscionable conduct (corporate behaviour)470Percy331Unilateral restrictions on supply (Cartels, Markets)456Performance36Utilitarianism261Performance improving social and environmental (CSR)588Virtue ethics266Performance management (corporate governance)3110Voluntary frameworks (CSR)556Perks346West16Pfeffer and Salancik310Whistleblowing215Philanthropy114Whistleblowing protection461Phoenix companies (markets)487Wilensky112Ponemon270Wilful blindness3100Ponzi schemes (markets)487Willmott18Pools (markets)482World Business Council on Sustainable Development5736Prep and reporting (business)245Wyatt223Price-fixing (Cartels, Markets)454Professional (decision making influences)276Professional appointment (public practice)237Professional behaviour229Professional competence and due care227Professional discipline255Professional ethics2610Professional Independence21721

ModuleTopicMPPaPbPcTopicMPPaPbPcWest16Kitchen-tabling260Abbott17Utilitarianism261Robson and Cooper18Deontological263Willmott18Kant263APES 110 Code of Ethics1912Justice theory264Carnegie and Napier1933Rights theory264Attributes of profession110Ethical decision making (philosophical)265Buckley and Buckley110Mathison265Carey110Aristotle266Greenwood110Mele266IFAC112212326Virtue ethics266APESB 2010112Doucet and Ruland267Buckley112Kohlberg267Service Ideal112Cognitive moral development (Kohlberg)268Wilensky112Ethical reasoning (Kohlberg)268Philanthropy114Ponemon270Becker117Individual (decision making influences)271Schon118Lampe and Finn271Governing body119Organisational culture, code of ethics (decision making influences)272PAIB (Prof Accnounts in Business)121Schein272AAA (American Accnting Association)129Stress in workplace275Social Impact of Acc130Professional (decision making influences)276Miller132Societal (decision making influences)277Parker, Ferris and Otley132Ethical decision making models280Ethics and failures135AAA (American Accnting Association)281Sikka135AICPA (decision tree)282AASB136Carnegie35ASIC Act136Conformance36Australian FRC (Financial Reporting Council)136Corporate governance36CLERP9 Act136PAIB (Prof Accnounts in Business)36Corporations Act136Performance36FRC (Financial Reporting Council)136Brown37G20138Business governance37Human Rights into workforce (UDHR)138Jensen and Meckling3949UDHR (Human Rights)138Agency theory3950Soft skills, knowledge and experience143Directors and boards31013SSKE143Committees of the board31029Technical skills, knowledge and experience143External auditors31038TSKE143Internal auditors31038Albrecht and Sack144Regulators31038Beard, Smith and Briggs144Stakeholders31040Blanthorne144Board of Directors310Coate, Mitschow and Schinski144Components of corporate governance310Dimnik and Felton144Corporations Act310Smith and Briggs144Dependency theory310Stereotypes (Accnt)144Donaldson and Davies310Jeacle145Pfeffer and Salancik310Mitchell24Shareholders310Professional ethics2610Stewardship theory310Business ethics26Board chair319Mintz210CEO319Biddle211Nomination committee330Moral Agency211Remuneration committee330Russell211Risk management committee330APES 110 Code of Ethics212Bosch3313557APESB 2010212SOX33155Code of Ethics for Prof Accnts213Audit committee331Bazerman215Percy331Davenport215Hampel report336Tsahuridu215Institutional shareholders336Whistleblowing215Agency and delegated powers344Fundamental principles of prof conduct216Agency costs345Integrity216Perks346Professional Independence21721Empire buiding (agency costs)347Objectivity217Risk avoidance (agency costs)347CLERP9 Act221Time horizons (agency costs)347PCAOB221Bonding (agency costs)348Public Company Accounting Oversight Board221Monitoring (agency costs)348SOX221Remuneration issues349European Commission audit reform222Denning350Chinese walls223Monks and Minow350Wyatt223Officers351Professional competence and due care227Global imperative (governance)352Confidentiality228International development timetable353Professional behaviour229Cadbury354Conceptual framework (principles) approach230Combined Code354Threats233Greenbury354Professional appointment (public practice)237Higgs review354Conflicts of interest (public practice)239International development timetable UK354Fees (public practice)240International development timetable USA354Second opinions (public practice)240Smith report354Marketing (public practice)243COSO (Internal Control)355109Conflicts of interest (business)244Business Roundtable356Earnings management (business)245CalPers356Jennings245ICGN International Corporate Governance Network356Prep and reporting (business)245International Corporate Governance Network356Integrity (reporting with)246OECD Priciples of Corporate Governance35761Financial Interests (business)248Ramsay Report357Gifts Interests (business)248ASX corporate governance principles and recommendations35872Related party transactions251CLERP 9 Corporate Law Economic Reform Program Act358Quality assurance253Corporate Law Economic Reform Program Act358Complaints255GFC responses368Professional discipline255UK Financial Reporting Council Corporate Governance Code370Penalties and appeals256UK FRC370Conceptual framework for ethical behaviour257Salomon371Dellaportas2587172Institutional Investors382Teleological258UK FRC Stewardship code382Ethical egoism259Financial Services Council FSC Australia383TopicMPPaPbPcTopicMPPaPbPcFSC (Financial Services Council) Australia383Corporate Social Resposibility CSR Definition56Market based systems (corporate governance)38687CSR Corporate Social Resposibility Definition56Relation based systems (corporate governance)38689World Business Council on Sustainable Development5736Anglo-Saxon system (corporate governance)386CEC Commission of European Communities CEC (CSR)57Insider system (corporate governance)386Commission of European Communities CEC (CSR)57Outsider system (corporate governance)386Holme and Watts57Shareholder system (corporate governance)386Tinker and Niemark57Stakeholder system (corporate governance)386Accountability58France (corporate governance system)391Gray58Germany (corporate governance system)391Environmental Reporting59Asia (corporate governance system)392Social Reporting59GFC3100101Sustainability Reporting510Wilful blindness3100KPMG (CSR reporting survey)511Insolvancy and liquidation3101Externalities513Failures (corporate)3107Bebbington and Gray515Risk management (corporate governance)3107Gray and Bebbington515Integrated Framework (COSO)3109Climate change (CSR)516Internal Control (COSO)3109Friedman518Performance management (corporate governance)3110Mathews518Balanced Scorecard BSC3111Milton Friedman518BSC Balanced Scorecard3111Corporate Watch519CIMA3111Stakeholders (CSR)520Leadership (corporate governance)3112Berle, Adolf521Not for profit organisations (corporate governance)3115Dodd, Merrick521SME (corporate governance)3116Shareholder primacy perspective521Public Sector (corporate governance)3117Social contract perspective521Uhrig Report3118119Motivations CSR522Harris3118Enlightened self-interest524Board appointments46Stakeholder management527Board departures47Stakeholder theory - managerial branch528Bosch47Deegan5293Two strikes rule4826Stakeholder theory - ethical branch529Spill Board spill48Legitimacy theory530Disqualification (board member)410Organisational legitimacy530Diversity (boards)412Dowling and Pfeffer531Hazen and Broome412Lindblom531Remuneration and performance (directors)418Shocker and Sethi531Employees429Social contract531Fair pay and working conditions (employees)430Licence to operate (CSR)532Health and Safety (employees)430MCA Minerals Council of Australia534Occupational Health and Safety430Minerals Council of Australia MCA534Correct advertising (employees)431Deegan and Ranklin (CSR, legitimacy)535Family and leave entitlements432Islam and Deegan (CSR, legitimacy)535Employee governance433Mathieu (CSR, legitimacy)537Trade and Labour unions436Duff and Guo541Audit and regulation437Limitations traditional financial reporting (CSR)541Legal system440Traditional financial reporting limitations (CSR)541Penalties, proof, redress44244Discounting future cash flows544Redress44244Issues traditional financial reporting544Cicil penalties442Entity assumption548Criminal penalties442Regulations (CSR)548Pecuniary penalty443National Greenhouse and Energy Reporting Act NGER550Competition (markets)445NGER National Greenhouse and Energy Reporting Act550Competition and consumer Act445Howes (CSR, NPI)552Competition policy (markets)445National Pollutant Inventory NPI552Collusion (markets)448NPI National Pollutant Inventory552Abuse of market power449EEO Energy Efficiancy Opportunities Act553Anti-competetive conduct449Energy Efficiancy Opportunities Act EEO553Regulation (markets)449ETS554Mergers and acquisitions451EU Emissions Trading Scheme554Cartels452OECD Guidelines for Multinational Enterprises555Output restrictions (Cartels, Markets)453Global Reporting Initiative (CSR)556Allocation customers (Cartels, Markets)454Voluntary frameworks (CSR)556Bid-rigging (Cartels, Markets)454Carbon Disclosure Project559Price-fixing (Cartels, Markets)454UN Global Impact560Unilateral restrictions on supply (Cartels, Markets)456AA1000 Accountability562Resale price maintenance (Cartels, Markets)457Accountability AA1000562Legal compliance and governance459Equator Principles562Fels, Alan (compliance)460GHG The Greenhouse Gas Protocal564Whistleblowing protection461Greenhouse Gas Protocal GHG564Consumer protection466Trucost (CSR)565Consumers and customers466Eco-Balance566Misleading conduct (corporate behaviour)468Social Audits (CSR)568Unconscionable conduct (corporate behaviour)470CSR Reporting, best practice, innovation571Financial markets473IIRC Integrated Reporting (CSR)574Markets (financial)473Integrated Reporting IIRC (CSR)574Role of markets473Climate change international initiatives (CSR)576Information and media (markets)474Climate change Accounting techniques580Protecting the financial market (markets)476Cap and Trade581Insider trading (markets)477Emissions582Market manipulation (markets)480Environmental management Reporting585Churning (markets)482Deegan (environmental management reporting)586Pools (markets)482Improving environmental and social performance (CSR)588Runs (markets)482Improving social and environmental performance (CSR)588Fundraising documents (markets)483Performance improving social and environmental (CSR)588Bribery (markets)485ISO 14000589Corruption (markets)485ISO 26000589Rogue trading (markets)486Best Practice CSR to address climate change591Phoenix companies (markets)487Deegan (address climate change)591Ponzi schemes (markets)487Haque and Deegan591Insider model (shareholders)489CSR critics592Outsider model (shareholders)489Representation (shareholders)489Shareholder representations489CalPers492ACMAC Australian Corporations and Markets Advisory Committee56Australian Corporations and Markets Advisory Committee ACMAC56

ContentsModule 1: Accounting and society Part A: Accountants as members of a profession

What is a professional 1.4Self - regulatory process1.5Professions - the market control view 1.6Altruism action1.7Enlightened self- interest1.7Entrepreneurialism1.8Professionalism1.8Trust and professions 1.8Attributes of the accounting profession (8)1.9Systematic body of theory and knowledge 1.9Extensive education process 1.9Ideal of service to the community 1.10The well-being of society 1.10The pursuit of excellence 1.11Community service1.11Pro bono work1.11High degree of autonomy and independence 1.11Self - regulation and professional discipline 1.12Code of ethics for members 1.12Distinctive ethos or culture 1.13Application of professional judgment 1.13Keys judgment that auditors must make 1.14Existence of a governing body 1.15Role of governing body1.15Profession's self regulatory process1.15APESB- Accounting professional and ethical Standard Board1.15ICAA- Institute of Chartered Accountant in Australia1.15Role of APESB (fulfill its role by)1.16Quality assurance process1.16Component of quality assurance process1.16Elements of a system of quality control1.17Professional discipline1.18Type of complaint1.19Penalties and appeals1.20Part B: Interaction with society 1.21Accounting roles, activities and relationships 1.21Relationships and roles 1.21Accounting work environments 1.21Public practice accounting1.22Roles of accountant in public practice1.23Professional accountant in business 1.23Accountants employed in the large business environment 1.23Roles of accountant in private business1.24Accounting in small and medium enterprises (SMEs)1.24IFAC research on accountants employed in SMEs1.25Accountants as external advisers to SMEs1.27Public sector1.28Not for profits- NFPs1.28Social impact of accounting 1.29Social impact example - Depreciation and behaviour1.30Credibility of the profession1.31Credibility under challenge1.31Key issues causing reduced credibility1.32Creative accounting1.32Poor audit quality1.32Lack of auditor independence1.32Financial accounting distortions1.33IFAC study 20021.33Restoring credibility to accounting 1.34Capability considerations 1.35Business leadership capalibities 1.36Technical skills, knowledge and experience 1.36Soft skills, knowledge and experience1.37TSKE and SSKE - Career perspectives 1.37Career guidance system (4 skills areas)1.38Module 2: EthicsPart A: Professional ethicsImpact of ethical or unethical decisions 2.4Ethics defined2.6Morals2.6Ethics2.6Business ethics2.7Professional ethics2.7Ethics in accounting - Real life scenarios 2.8Ethical dilemmas2.9Leung and Cooper 20052.9The accounting work environment 2.9Applying ethics 2.10Part B: Ethical theoriesTheoretical approaches to ethics 2.11A concept map2.11Normative theory2.11Teleological theories (consequential)2.12Ethical egoism2.13Psychological egoism2.13Restricted egoism2.14Kitchen- tabling2.15Sut ngy lm vic, nghin lm vicUtilitarianism2.15Limitations of consequential and utilitarian analysis (4)2.17Deontological theories (non- consequential)2.18Rights theory2.18Justice theory2.19Qualified egalitarian theory2.19Virtue ethics 2.20Doucet and Ruland- 3 virtues for accountant2.21Moral agency2.21Part C: A code of ethics for professional accountants 2.23The public interest - Ethics in practice2.23General application of the Code2.25Fundamental principles of professional conduct 2.25Integrity2.25Objectivity 2.26Professional competence and due care2.27Confidentiality2.28Professional behavior 2.29Conceptual framework (principles - based) approach2.31Threats2.33Safeguards2.36Ethical conflict resolution (5 steps)2.37Code of ethics for members in public practice 2.37Professional appointment 2.38Referrals 2.39Conflict of interest 2.39Incompatible activities 2.40Conflicts between 2 or more clients 2.40Second opinions 2.41Fees and other types of remuneration2.41Professional fees 2.41Contigent and referral fees 2.42Commissions and soft-dollar benefits 2.43Marketing professional services 2.44Gift and hospitality2.45Custody of client assets2.45Objectivity- all services2.45Independence- audit, review and other assurance engagements2.46Professional independence in practice2.49Provision of non- assurance services to audit clients2.50Chinese Walls2.503 reason make ethical lapses2.50Arthur Andersen and auditor independence2.51Code of ethics for members in business 2.54Potential conflicts 2.54Preparation and reporting of information and earnings managements 2.55Earnings management2.55Reporting with integrity 2.57Framework for reporting integrity2.57Acting with sufficient expertise2.58Financial interests2.58Inducements2.59Professional and ethical failures by members in business and members in public practice 2.60Member in business: Sonya Denise Causer 20102.60m TK individual payment o ly tin ca ctyMember in public practice: Trevor Neil Thomson 20102.61gip client evade taxLiquidator banned for life : Stuart Ariff 20092.61dng tin tiu xi c nhnABC Learning and related party transactions2.62ko disclose related party transactionsFudge this-reporting blooper2.62c ch Fudge this trn bcao gi stock exchangePart D: Ethical decision making2.63Factors influencing decision-making 2.63Individual2.64Cognitive development2.64Organisations 2.65Organizational culture, codes of ethics and significant others 2.65Schein's 6 primary mechanisms 2.65Professional 2.67Societal2.67Law and regulation2.673 shortcoming of law2.67Culture 2.68Ethical relativism-When in Rome, do as the Roman do2.68morality l ph thuc vo norm of the society m it is practisedEthical decision-making models 2.70Heuristic approach2.70Philosophical model of ethical decision-making2.71American Accounting Association Model2.727 Steps of AAA model2.81Module 3: Governance Concepts

Part A: Overview of corporate governance Governance definition3.4Accountant and effective governance3.5Important of corporate governance3.5The need for corporate governance3.6Stewardship theory 3.6Agency theory 3.7Agency issues and cost3.8Monitoring cost3.8Bonding cost3.8Residual loss3.9Excessive non-financial benenfits3.9Empire building3.9Risk avoidance3.9Differing time horizons3.10Components of corporate governance 3.11Corporations 3.11Advantages of corporation (so vs other form of organisation)3.11Types of corporations 3.12Board of directors3.14Board's functions3.14Board's functions- Rogers CJ3.15Alternative board structures and relationships ( including two-tier boards)3.16Board chair3.16Role of the CEO3.16Independence of director3.17Directors - independence characteristics 3.18Duties and responsibilities of directors 3.19Conflict of interest3.19Act in the corporation's best interests 3.20Act for proper purpose 3.21Nominee directors 3.21Duty to retain discretion3.21Dute of care, skill and intelligence 3.22Safe harbour rule3.23c li cc case module 3Office positions ( 5 positions)3.26Duty to avoid insolvent trading3.26Committees of the board3.27Risk management committee3.27Nomination committee3.28Remuneration committee3.28Audit committee3.28Benefit of audit committee3.29Limitations of audit committee3.29Bosch 1995 about audit committee3.30cho rng audit committee ch mang li li ch gShareholders3.31Power of shareholders defined in law ( shareholder's right3.31Individual shareholders3.32Institutional shareholders3.32Issues arise for Institutional shareholders3.33Stewardship code (FRC 2010)3.33Blue book (IFSA 2009- Aus)3.33Internal and external auditors 3.34Regulators 3.34Trait of a sound regulatory system3.35Principles based regulation3.35Rules based regulation3.36Stakeholders 3.36Milton Friedman - Shareholder theory3.36Edward Freeman- Stakeholder theory3.36Stakeholders map3.37Employees3.38Suppliers and lenders3.39Customers- consumers3.39Part B: International perspective on Corporate governance 3.40Global push for improved governance3.40Key factors driving the need for better corporate governance3.40Reasons for shareholder activism growing (2)3.4030 years of corporate governance 3.41International development timetable 3.41UK 3.41US 3.42SOCO 1994- Internal Control- Intergrated Framework3.42Sarbanes- Oxley Act3.42Business Roundtable3.42Australia3.43Ramsay Report 2001- Aus3.43ASX corporate governance principles and recommendations3.43CLERP9- Corporate Law Economic Reform Program 2004 (Cwlth)3.43Part C: Codes and guidence OECD Principles of C.G (6 principles)3.45Ensuring the basis for an effective C.G framework- OECD3.45Rights of shareholders and key ownership functions- OECD3.46Shareholder right- OECD3.46The equitable treatment of shareholders-OECD3.47Role of stakeholders in Corporate governance-OECD3.48Disclosure and transparency- OECD3.49Responsibilities of the board- OECD3.49Key function of the Board3.50UK FRC Corporate governance code (5)3.51Comply or explainApex 1.2LeadershipApex 1.4EffectivenessApex 1.4Composition of the BoardApex 1.5Re-election- UK FRCApex 1.5AccountabilityApex 1.6Audit committee and auditor- UK FRCApex 1.6Rmuneration committeeApex 1.7Relationship with shareholdersApex 1.7ASX Principles recommendations (8)3.53Lay solid foundation for management and oversight- ASX principles3.54Structure the Board to add value- ASX principles3.54Promote Ethical and responsibility decisiong- making- ASX principles3.55Audit committee structure- ASX principles3.56Remunerate committee- ASX principles3.58Executive remuneration packages3.58Alternative international approaches to governance 3.59Market-bases systems 3.60Relationship-based systems - European approaches 3.62Germany3.64France3.64Relationship-based systems - Asian approaches 3.65Objective of the reform process3.66Japan3.67Keiretsu3.67China3.67He 20113.69Family controlled companies and business networks3.70India3.70Governance in other sectors3.71Not for profit organisations3.71SMEs3.72Public sector3.73Harris 19973.74recommend use of legislation to set out fole ,power of boardUhrig 20033.74recommend use of committee enhance effectiveness of board & nen han che' representational appointmentPart D: Covernance failures and outcomes Common failure factor3.75Remuneration3.76Witful blindness 3.76Complex financial instruments3.77Improving corporate governance3.77Risk management3.77Internal control and risk management3.78Independence of the chair3.79Continued evolution of corporate governance3.79Module 4 : Corporations and other entities

Corporation governances success factors 4.4Board appointment and cessation4.5Appointment 4.5De-staggering 4.5Departures 4.6Removal 4.6Two-strikes rule - Shareholders spill the whole board 4.6Disqualification4.8Ethics of disqualification4.9Diversity - fairness and performance4.10Board diversity4.10Token director4.10Adopting diversity4.11NAB's diversity approach4.12Remuneration and performance 4.12Understanding the debate4.12Non-executive directors4.15Excecutive directors and other senior executives4.15Performance based remuneration4.15Disclosure, transparency and remuneration4.16Tightening rule regarding remuneration- Australia4.17Golden handsake4.17Public examples about remuneration4.18Operational issues4.20Employees generally 4.20Occupation health and safety 4.21Fair pay and working conditions4.21Family and leave entitlements 4.21Ethical obligations - Employee governance 4.22Nike- case examples of failure in ethics4.23Trade and labor unions 4.24Audit and related regulations 4.24Impact of the legal system on the corporation4.27Legal system4.27Economy and the legal system4.28Proof, penalties and redress - Criminal and civil 4.29Law leading to criminal penalties4.29Laws with civil outcomes and civil penalties 4.30Pecuniary penalty4.30Redress compared with penalties 4.31Competition and protecting markets for goods and services4.32Competition policy 4.32Workable competion (effective)4.33Competition and stakeholders 4.33Regulating anti-competitive conduct 4.35Abuse of market power 4.35Predatory pricing4.35Mergers and acquisitions 4.38Agreements between competitors - Cartel conduct - per se illegal4.38Test for catel conduct4.39Output restrictions4.39Allocating customers, suppliers and territories4.39Bid- rigging4.40Price- fixing4.40Unilateral restrictions on supply ( exclusive dealing)4.42Third line forcing- Per se illegal4.42Resale price maintenance 4.43Lost leading- exception of resale price maintenance4.43Approvals procedures 4.44Legal compliance and governance4.45Cost associated with publicised wrongdoings4.45Why have compliance program? As indentified by Professor Fels 4.46Whistleblower protection4.47Australia Corporation Act Whistleblowers's protection4.49Consumers and customers 4.51Caveat emptor to consumer protection4.52Regulation and consumer protection4.52Misleading conduct and representations 4.53Puffery4.55Unconscionable conduct 4.56Parol evidence 4.56Test for unconscionable conduct4.58The Corporation and financial markets 4.59Role of markets 4.59Information and the media 4.60Rating agency4.61Protecting the financial market 4.62Insider trading 4.63Chinese wall4.63Market manipulation4.66Form of market manipulation4.67Working definition4.67Churning4.68Pools4.68Runs4.68Fundraising document4.69Bribery 4.71Facilitation payment4.71Rogue trading 4.72Ponzi schemes 4.73Phoenix companies 4.73De factor director4.73Representation 4.74Representation role of institutional investors4.76IIC- institutional investors committee4.76Pseudo- market regulators4.77Expanding ethics 4.79Module 5: Corporate social responsibility

Definition and overview 5.6The evolution of CSR - A brief history5.6CSR definition5.6Accountability5.8Social reporting 5.9Environmental reporting 5.9Sustainability reporting 5.10Surveys of current reporting practice5.10The externalities created by business organizations: The implications for reporting 5.12Sustainability cost5.14Importance of climate change and its relevance to CSR reporting 5.15Alternative perceptions about the responsibilities of organizations 5.16Friedman's argument5.16Is it realistic to expect companies to fully embrace a broader social responsibility?5.18Good faith requirement5.18Who are the stakeholders of an organization?5.19The shareholder primacy perspective 5.20Professor Adolf Berle5.20Professor Merrick Dodd5.20Motivation for embracing CSR reporting 5.22Enlightened self-interest 5.23Drivers by BCA for greater CSR5.23Brundtland Report5.25Motivation for disclosing CSR information by BCA5.26Stakeholder management 5.26Stakeholder theory - The managerial branch 5.27Stakeholder theory - the ethical branch 5.28Organizational legitimacy 5.29Legitimacy theory5.29Social contract5.30Lindblom 19945.31Course of action organisation do to repair legitimacy (4)5.31Empirical evidence consistent with legitimacy theory5.33Other incentives tied to maximising the value of the organization and shareholder wealth 5.36Preferential capital flow5.36Criteria for responsible investing5.36Responsible investment screening5.36Best of sector5.37Thematic investment5.37Impact investing5.37ESG integration5.37Engagement with companies on ESG issues5.37Shareholder activism- Voting and resolutions5.37Board and reputation5.38Risk management incentives5.38What about the corporate social responsibility of accounting firms 5.40Limitations of traditional financial reporting5.41Definition of the elements of F.R5.41Practice of discounting future cash flows 5.43Issues of reliable measurement and probability 5.44Hypothetical decision process- 4 steps5,46Yankelovich5,46Focus on short-term results 5.47The entity assumption5.47Current regulations for CSR reporting 5.48Requirements embodied within the Corporations Act and Accounting standards 5.48NGER Act -National Greenhouse and Energy Reporting Act 2007 ( Cwlth) Act5.49CER's Responsibility5.49CER's objective5.49NGER Act -Reporting threshold5.50Carbon pricing scheme5.51CE Act- Clean Energy Act5.51Liable entity under CE Act5.51NPI- National Pollutant Inventory 5.51NPI's role5.51NPI's function5.52EEO Act- Energy Efficiency Opportunities Act 2006 (Cwlth)5.52European Union Emissions Trading Scheme 5.53OECD Guidelines for Multinational Enterprises 5.54Voluntary frameworks for CSR reporting 5.55The Global Reporting Initiative (GRI) 5.55International guidence on CSR-related performance and reporting 5.57 Carbon Disclosure project - CDP5.57United Nations Global Compact - UNGC5.58Global Compact's purpose5.58UNGC's principles (10)5.59Global Compact's critic5.59Accountability AA1000 series 5.60Equator Principles5.60Project financing definition5.60The Greenhouse Gas Protocol 5.62Kyoto Protocol5.62Project Protocol5.62Trucost 5.63Eco-balance 5.64Social audits and their relationship to CSR reporting 5.65SA8000-social accountability5.68Best practice and innovative reporting 5.69Zone of acceptability5.69AGL Sustainability report 20105.70Vicsuper performance Report 20105.70Integrated reporting 5.71IIRC- international Integrated Reporting Committee5.71Integrated reporting framework5.72Role of IIRC5.72International initiatives on climate change 5.73Copenhagen Accord5.74Conference in Cancun, Mexico5.75Durban Climate change Conference5.75Green Climate Fund5.75Bonn Climate Change Conference5.75Climate change accounting techniques - cap and trade5.77Financial accounting treatment of assets and liabilities associated with cap and trade schemes 5.78Accounting for the levels of actual emissions (3 Scope)5.79Environmental management accounting 5.80Win- win scenario5.80Deegan 20035.81Glad 19955.82Benefit of Environmental management accounting 5.83Corporate governance mechanisms aimed at improving social and environmental performance 5.83ISO 4000 family5.84ISO 2600- guidance on social responsibility5.84Corporate gorvernace mechanisms to specifically address climate change 5.86Best practice C.G practices 5.86The counter view - CSR will not achieve what it purports to achieve 5.87CSR is used to distract the community 5.88Corporations have a history of lobbying against regulation 5.88Industry codes of conduct do not provide positive outcomes 5.89Companies are not established to be socially responsible 5.89Market mechanisms do not work 5.90Consumers place price above social and environmental credentials 5.90Shareholder dialogue is not open discussion 5.91

AlphabetModule 1: Accounting and society Part A: Accountants as members of a profession 1.4What is a professional 1.4Self - regulatory process1.5Professions - the market control view 1.6Altruism action1.7Lm mi th ethics, k c khin bn thn mt CP hay thit hiWest 2003 (self- interest)1.7Larson 1977 (self- interest)1.7Cho rng movative of DN ko phi l ideal of service m l self interestLee 1995- Enlightened self- interest concept1.7a ra definitionRobson and Cooper 19901.7k hp gia enlightened self- interest and public interestEnlightened self- interest1.7Entrepreneurialism1.8Professionalism1.8Trust and professions 1.8Attributes of the accounting profession 1.9Systematic body of theory and knowledge 1.9Extensive education process 1.9Ideal of service to the community 1.10Wilensky 1964 abt service ideal1.10Buckley 19781.10Cho rng profession can use monopoly power as they see fit, as long as is used in the public interestThe well-being of society 1.10The pursuit of excellence 1.11Community service1.11Pro bono work1.11High degree of autonomy and independence 1.11Self - regulation and professional discipline 1.12Code of ethics for members 1.12Distinctive ethos or culture 1.13Application of professional judgment 1.13Judgment that auditors must make 1.14Existence of a governing body 1.15Role of governing body1.15Profession's self regulatory process1.15APESB- Accounting professional and ethical Standard Board1.15ICAA- Institute of Chartered Accountant in Australia1.15Role of APESB (fulfill its role by)1.16Quality assurance process1.16Component of quality assurance process1.16Elements of a system of quality control1.17Professional discipline1.18Type of complaint1.19PCO- Professional Conduct Officer1.19Penalties and appeals1.20Part B: Interaction with society 1.21Accounting roles, activities and relationships 1.21Relationships and roles 1.21Accounting work environments 1.21Public practice accounting1.22Roles of accountant in public practice1.23Professional accountant in business 1.23Accountants employed in the large business environment 1.23Roles of accountant in private business1.24Accounting in small and medium enterprises (SMEs)1.24IFAC research on accountants employed in SMEs1.25Accountants as external advisers to SMEs1.27Public sector1.28Not for profits- NFPs1.28Social impact of accounting 1.29Social impact example - Depreciation and behaviour1.30Credibility of the profession1.31Credibility under challenge1.31Key issues causing reduced credibility1.32Creative accounting1.32Poor audit quality1.32Lack of auditor independence1.32Financial accounting distortions1.33IFAC study 20021.33Restoring credibility to accounting 1.34Capability considerations 1.35Business leadership capalibities 1.36Technical skills, knowledge and experience 1.36Soft skills, knowledge and experience1.37TSKE and SSKE - Career perspectives 1.37Career guidance system (4 skills areas)1.38Module 2: EthicsPart A: Professional ethics2.4Impact of ethical or unethical decisions 2.4Ethics defined2.6Morals2.6Ethics2.6Business ethics2.7Professional ethics2.7Ethics in accounting - Real life scenarios 2.8Ethical dilemmas2.9Leung and Cooper 20052.9The accounting work environment 2.9Applying ethics 2.10Part B: Ethical theories2.11Theoretical approaches to ethics 2.11A concept map2.11Normative theory2.11Teleological theories (consequential)2.12Ethical egoism2.13Psychological egoism2.13Restricted egoism2.14Kitchen- tabling2.15Sut ngy lm vic, nghin lm vicUtilitarianism2.15Limitations of consequential and utilitarian analysis (4)2.17Deontological theories (non- consequential)2.18Deontological theories (non- consequential)2.18Rights theory2.18Justice theory2.19Qualified egalitarian theory2.19Virtue ethics 2.20Virtue ethics 2.20Doucet and Ruland- 3 virtues for accountant2.21Moral agency2.21Part C: A code of ethics for professional accountants 2.23The public interest - Ethics in practice2.23General application of the Code2.25Fundamental principles of professional conduct 2.25Integrity2.25Objectivity 2.26Professional competence and due care2.27Confidentiality2.28Professional behavior 2.29Conceptual framework (principles - based) approach2.31Threats2.33Safeguards2.36Ethical conflict resolution (5 steps)2.37Code of ethics for members in public practice 2.37Professional appointment 2.38Referrals 2.39Conflict of interest 2.39Incompatible activities 2.40Conflicts between 2 or more clients 2.40Second opinions 2.41Fees and other types of remuneration2.41Professional fees 2.41Contigent and referral fees 2.42Commissions and soft-dollar benefits 2.43Soft dollar benefit2.43Marketing professional services 2.44Gift and hospitality2.45Custody of client assets2.45Objectivity- all services2.45Independence- audit, review and other assurance engagements2.46Professional independence in practice2.49Non- assurance services to audit clients2.50Chinese Walls2.503 Reasons make ethical lapses2.50Arthur Andersen and auditor independence2.51Code of ethics for members in business 2.54Potential conflicts 2.54Preparation and reporting of information and earnings managements 2.55Earnings management2.55Reporting with integrity 2.57Framework for reporting integrity2.57Acting with sufficient expertise2.58Financial interests2.58Inducements2.59Professional and ethical failures by members in business and members in public practice 2.60Member in business: Sonya Denise Causer 20102.60m TK individual payment o ly tin ca ctyMember in public practice: Trevor Neil Thomson 20102.61gip client evade taxLiquidator banned for life : Stuart Ariff 20092.61dng tin tiu xi c nhnABC Learning and related party transactions2.62ko disclose related party transactionsFudge this-reporting blooper2.62c ch Fudge this trn bcao gi stock exchangePart D: Ethical decision making2.63Factors influencing decision-making 2.63Individual2.64Cognitive development2.64Organisations 2.65Organizational culture, codes of ethics and significant others 2.65Schein's 6 primary mechanisms 2.65Professional 2.67Societal2.67Law and regulation2.673 shortcoming of law2.67Culture 2.68Ethical relativism-When in Rome, do as the Roman do2.68morality l ph thuc vo norm of the society m it is practisedEthical decision-making models 2.70Heuristic approach- decision rule- rule of thumb2.70dng nhng decision mang tnh tng i, ch ko phi l optimalPhilosophical model of ethical decision-making2.71kt hp c 4 loi ethics theories trn a ra decisionAmerican Accounting Association Model2.72ch c g c bit, nhng l 1 systematic approach => c vn hn ko7 Steps of AAA model2.81Module 3: Governance Concepts Part A: Overview of corporate governance 3.4Governance definition3.4Accountant and effective governance3.5Important of corporate governance3.5The need for corporate governance3.6Stewardship theory 3.6Agency theory 3.7Agency issues and cost3.85 Reason for arising agency cost (5 reasons)3.8Monitoring cost3.8Bonding cost3.8Residual loss3.9Excessive non-financial benenfits3.9Empire building3.9Risk avoidance3.9Differing time horizons3.10Components of corporate governance 3.11Corporations 3.11Advantages of corporation (so vs other form of organisation)3.11Types of corporations 3.12Board of directors3.14Board's functions3.14Board's functions- Rogers CJ3.15Alternative board structures and relationships ( including two-tier boards)3.16Board chair3.16Role of the CEO3.16Independence of director3.17Directors - independence characteristics 3.18Duties and responsibilities of directors 3.19Conflict of interest3.19Act in the corporation's best interests 3.20Act for proper purpose 3.21Nominee directors 3.21Duty to retain discretion3.21Non- delegable function of directors3.22Dute of care, skill and intelligence 3.22Safe harbour rule3.23Office positions ( 5 positions)3.26Duty to avoid insolvent trading3.26Committees of the board3.27Risk management committee3.27Nomination committee3.28Remuneration committee3.28Audit committee3.28Benefit of audit committee3.29Limitations of audit committee3.29Bosch 1995 about audit committee3.30Shareholders3.31Power of shareholders defined in law ( shareholder's right3.31Individual shareholders3.32Institutional shareholders3.32Issues arise for Institutional shareholders3.33Stewardship code (FRC 2010)3.33Blue book (IFSA 2009- Aus)3.33Internal and external auditors 3.34Regulators 3.34Trait of a sound regulatory system3.35Principles based regulation3.35Rules based regulation3.36Stakeholders 3.36Milton Friedman - Shareholder theory3.36Edward Freeman- Stakeholder theory3.36Shareholders map- all the stakeholders3.37Employees3.38Suppliers and lenders3.39Customers- consumers3.39Part B: International perspective on Corporate governance 3.40Global push for improved governance3.40Key factors driving the need for better corporate governance3.402 Reasons for shareholder activism growing (2)3.4030 years of corporate governance 3.41International development timetable 3.41UK 3.41Cadbury report- comply or explain3.41Greenbury committee3.42V director's remunerationUS 3.42SOCO 1994- Internal Control- Intergrated Framework3.42Sarbanes- Oxley Act3.42audit partner must be rotated after 5 consecutive yearsBusiness Roundtable3.42other approachAustralia3.43Ramsay Report 2001- Aus3.43ve' auditor independence but not recommend ca'm provide non-assurance servicesASX corporate governance principles and recommendations3.43CLERP9- Corporate Law Economic Reform Program 2004 (Cwlth)3.43Part C: Codes and guidence 3.45OECD Principles of C.G (6 principles)3.45Ensuring the basis for an effective C.G framework- OECD3.45Rights of shareholders and key ownership functions- OECD3.46Shareholder right- OECD3.46The equitable treatment of shareholders-OECD3.47Role of stakeholders in Corporate governance-OECD3.48Disclosure and transparency- OECD3.49Responsibilities of the board- OECD3.49Key function of the Board3.50UK FRC Corporate governance code (5)3.51Comply or explainApex 1.2LeadershipApex 1.4EffectivenessApex 1.4Composition of the BoardApex 1.5Re-election- UK FRCApex 1.5AccountabilityApex 1.6Audit committee and auditor- UK FRCApex 1.6Rmuneration committeeApex 1.7Relationship with shareholdersApex 1.7ASX Principles recommendations (8)3.53Lay solid foundation for management and oversight- ASX principles3.54about gender diversityStructure the Board to add value- ASX principles3.54Promote Ethical and responsibility decisiong- making- ASX principles3.55Audit committee structure- ASX principles3.56Remunerate committee- ASX principles3.58Executive remuneration packages- ASX principles3.58Alternative international approaches to governance 3.59Market-bases systems 3.60Relationship-based systems - European approaches 3.62Germany3.64France3.64Relationship-based systems - Asian approaches 3.65Objective of the reform process3.66Japan3.67Keiretsu3.67China3.67He 20113.69Family controlled companies and business networks3.70India3.70Governance in other sectors3.71Not for profit organisations3.71SMEs3.72Public sector3.73Harris 19973.74recommend use of legislation to set out fole ,power of boardUhrig 20033.74recommend use of committee enhance effectiveness of board & nen han che' representational appointmentPart D: Covernance failures and outcomes 3.75Common failure factor3.75Remuneration3.76Witful blindness 3.76person avoid responsibility = cach putting themselves in the position unaware of factComplex financial instruments3.77Improving corporate governance3.77Risk management3.77Internal control and risk management3.78Independence of the chair3.79Continued evolution of corporate governance3.79Module 4 : Corporations and other entities Corporation governances success factors 4.4Board appointment and cessation4.5Appointment 4.5De-staggering 4.5ko apply vs MDDepartures 4.6Removal 4.6Two-strikes rule - Shareholders spill the whole board 4.6KMP- key management personnel4.7Disqualification4.8Ethics of disqualification4.9Diversity - fairness and performance4.10Board diversity4.10Token director4.10Adopting diversity4.11NAB's diversity approach4.12Remuneration and performance 4.12Understanding the debate4.12Non-executive directors4.15Excecutive directors and other senior executives4.15Performance based remuneration4.15Disclosure, transparency and remuneration4.16Tightening rule regarding remuneration- Australia4.17Golden handsake4.17Public examples about remuneration4.18Operational issues4.20Employees generally 4.20Occupation health and safety 4.21Fair pay and working conditions4.21Family and leave entitlements 4.21Ethical obligations - Employee governance 4.22Nike- case examples of failure in ethics4.23Trade and labor unions 4.24Audit and related regulations 4.24Impact of the legal system on the corporation4.27Legal system4.27Economy and the legal system4.28Proof, penalties and redress - Criminal and civil 4.29Law leading to criminal penalties4.29Laws with civil outcomes and civil penalties 4.30Pecuniary penalty4.30Redress compared with penalties 4.31Competition and protecting markets for goods and services4.32Competition policy 4.32Workable competion (effective)4.33Competition and stakeholders 4.33Regulating anti-competitive conduct 4.35Abuse of market power 4.35Predatory pricing4.35Mergers and acquisitions 4.38Agreements between competitors - Cartel conduct 4.38Test for catel conduct4.39Output restrictions4.39Allocating customers, suppliers and territories4.39Bid- rigging4.40Price- fixing4.40Unilateral restrictions on supply ( exclusive dealing)4.42Third line forcing4.42Resale price maintenance 4.43Lost leading- exception of resale price maintenance4.43Approvals procedures 4.44nhung TH exception as cartel conduct in some circumstancesLegal compliance and governance4.45Cost associated with publicised wrongdoings4.45Why have compliance program? As indentified by Professor Fels 4.46Fels 1999 (Alan Fels)4.46Whistleblower protection4.47Australia Corporation Act Whistleblowers's protection4.49Consumers and customers 4.51Caveat emptor to consumer protection4.52Regulation and consumer protection4.52Misleading conduct and representations 4.53Puffery4.55Unconscionable conduct 4.56Parol evidence 4.56addition word can't change the clear meaning of the signed contractTest for unconscionable conduct4.58The Corporation and financial markets 4.59Role of markets 4.59Information and the media 4.60Rating agency4.61Protecting the financial market 4.62Insider trading 4.63Chinese wall4.63Governing theories4.64Market manipulation4.66Form of market manipulation4.67Working definition4.67Churning4.68Pools4.68Runs4.68Fundraising document4.69Bribery 4.71Facilitation payment4.71Rogue trading 4.72Ponzi schemes 4.73du'ng investment of later investor de tra cho previously investorsPhoenix companies 4.73De factor director4.73nguoi na'm actual control nhung ko phai appoint directorsRepresentation 4.74Representation role of institutional investors4.76IIC- institutional investors committee4.76Pseudo- market regulators4.77l nhng investors t ban hnh regulation for C.GExpanding ethics 4.79Module 5: Corporate social responsibility Definition and overview 5.6The evolution of CSR - A brief history5.6Accountability5.8Social reporting 5.9Environmental reporting 5.9Sustainability reporting 5.10Surveys of current reporting practice5.10Externalities created by business organizations: The implications for reporting 5.12Sustainability cost5.14Importance of climate change and its relevance to CSR reporting 5.15Alternative perceptions about the responsibilities of organizations 5.16Friedman's argument5.16Is it realistic to expect companies to fully embrace a broader social responsibility?5.18Good faith requirement5.18Who are the stakeholders of an organization?5.19The shareholder primacy perspective 5.20Professor Adolf Berle5.20Professor Merrick Dodd5.20Motivation for embracing CSR reporting 5.22Enlightened self-interest 5.23Drivers by BCA for greater CSR5.23Brundtland Report5.25l manager coi sustainable development as a guiding principles=> khng compatible with enlightend self interestMotivation for disclosing CSR information by BCA5.26Stakeholder management 5.26Stakeholder theory - The managerial branch 5.27Stakeholder theory - the ethical branch 5.28Organizational legitimacy 5.29Legitimacy theory5.29Social contract5.30Lindblom 19945.31course of action m DN use to maintain and repair legitimacyCourse of action organisation do to repair legitimacy (4)5.31Social licence for operate5.32Empirical evidence consistent with legitimacy theory5.33nhng evidence cho thy DN act v legitimacyOther incentives tied to maximising the value of the organization and shareholder wealth 5.36Preferential capital flow5.36Criteria for responsible investing5.36Responsible investment screening5.36Best of sector5.37Thematic investment5.37Impact investing5.37ESG integration5.37Engagement with companies on ESG issues5.37Shareholder activism- Voting and resolutions5.37Board and reputation5.38Risk management incentives5.38What about the corporate social responsibility of accounting firms 5.40Limitations of traditional financial reporting5.41Definition of the elements of F.R5.41Practice of discounting future cash flows 5.43Issues of reliable measurement and probability 5.44Hypothetical decision process- 4 steps5,46Yankelovich5,46Focus on short-term results 5.47The entity assumption5.47Current regulations for CSR reporting 5.48Requirements embodied within the Corporations Act and Accounting standards 5.48NGER Act -National Greenhouse and Energy Reporting Act 2007 ( Cwlth) Act5.49CER's Responsibility5.49CER's objective5.49NGER Act -Reporting threshold5.50Carbon pricing scheme5.51CE Act- Clean Energy Act5.51Liable entity under CE Act5.51NPI- National Pollutant Inventory 5.51NPI's role5.51NPI's function5.52EEO Act- Energy Efficiency Opportunities Act 2006 (Cwlth)5.52European Union Emissions Trading Scheme 5.53OECD Guidelines for Multinational Enterprises 5.54Voluntary frameworks for CSR reporting 5.55The Global Reporting Initiative (GRI) 5.55International guidence on CSR-related performance and reporting 5.57 Carbon Disclosure project - CDP5.57United Nations Global Compact - UNGC5.58Global Compact's purpose5.58UNGC's principles (10)5.59Global Compact's critic5.59Accountability AA1000 series 5.60Equator Principles5.60Project financing definition5.60The Greenhouse Gas Protocol 5.62Kyoto Protocol5.62Project Protocol5.62Trucost 5.63Eco-balance 5.64Social audits and their relationship to CSR reporting 5.65SA8000-social accountability5.68focus on human rightBest practice and innovative reporting 5.69Zone of acceptability5.69AGL Sustainability report 20105.70nhng DN dnh CSR awardVicsuper performance Report 20105.70nhng DN dnh CSR awardIntegrated reporting 5.71IIRC- international Integrated Reporting Committee5.71Integrated reporting framework5.72Role of IIRC5.72International initiatives on climate change 5.73Copenhagen Accord5.74Conference in Cancun, Mexico5.75Durban Climate change Conference5.75Green Climate Fund5.75Bonn Climate Change Conference5.75Climate change accounting techniques - cap and trade5.77Financial accounting treatment of assets and liabilities associated with cap and trade schemes 5.78Accounting for the levels of actual emissions (3 Scope)5.79Ve' viec report Scope when meet reporting thresholdEnvironmental management accounting 5.80Win- win scenario5.80Deegan 20035.81about many environment cost are hidden in the overheadGlad 19955.82cho rng phn ln environment cost nm trong non- product profitBenefit of Environmental management accounting 5.83Corporate governance mechanisms aimed at improving social and environmental performance 5.83ISO 4000 family5.84ISO 2600- guidance on social responsibility5.84Corporate gorvernace mechanisms to specifically address climate change 5.86Best practice C.G practices 5.86The counter view - CSR will not achieve what it purports to achieve 5.87CSR is used to distract the community 5.88Corporations have a history of lobbying against regulation 5.88Industry codes of conduct do not provide positive outcomes 5.89Companies are not established to be socially responsible 5.89Market mechanisms do not work 5.90Consumers place price above social and environmental credentials 5.90Shareholder dialogue is not open discussion 5.91