Financial Reporting Problem for Billabong International Ltd

Question: Discuss about theFinancial Reporting Problem for Billabong International Ltd. Answer: By considering corporate governance section of Billabong International Ltd, it can be noticed that all the guidelines provided by ASX have been satisfied. Corporate governance section has been prepared by the company on the basis of amended principles given by ASX. The company had given their detail description of their management strategies that how they are complying with the Australian regulations in their corporate practices. Each director and the managerial person have defined responsibility to ensure that interest of the company is not affected in an adverse manner (Corporate Governance Statement Billabong International Limited, 2017). To ensure equality, standard Workplace Equity and Diversity Policy is described which is strictly complied by each worker by considering a global code of conduct. The company is providing fair remuneration to their workers and directors by describing Group Remuneration Policy on the website of the company. In addition to this, the company had als o provided clarification that remuneration plans cannot consider any transactions which will lead to limitation of economic risk of options or other unvested entitlements. Further, the company had provided assurance of Safeguard integrity in corporate reporting by describing Audit Risk Committee and its members (Beekes, Brown and Zhang, 2015). For maintaining transparency and keeping stakeholders informed, company is providing timely disclosure on the basis of ASX Listing Rules. In order to ensure going concern, the effective internal control system is developed which has a primary objective to recognise and managing risk. By considering the aspect of social accountability, requirement of commitment is necessary for continuous development in environmental sustainability. It belongs to an area in which returns are exceptionally fluid; it results in the increasing speed of environmental awareness (De Zwart, 2015). Individual initiatives are taken by the billabong, which ultimately results in the benefit of the environment, including support for environment groups, beginning of recycling programmers, using economic friendly fabrics and fibres rather than hazardous plastic packaging material. In Billabong International Limited, duty and responsibility for the environment increases within the range of board of directors of a company. In separation, each and every project has its own benefits. The company is occupied in the audit firm and evaluates the footprints of changing impact of non-financial aspects like sustainability, corporate governance by making use of models triple bottom line (Sustainability En vironment- Billabong Biz, 2017). By considering above-described aspects, it can be said that company shows a good example of sustainability reporting as the company had provided a viable description of non-financial factors. This approach assists stakeholders in having a better understanding of the company. References Beekes, W., Brown, P. and Zhang, Q., 2015. Corporate governance and the informativeness of disclosures in Australia: a re?examination. Accounting Finance, 55(4), pp.931-963. Corporate Governance Statement Billabong International Limited. 2017. [Online]. Available through phx.corporate-ir.net/External.File?item...t=1cb=635762278197230266. [Accessed on 27th May 2017]. De Zwart, F., 2015. Enhancing Firm Sustainability through Governance: The Relational Corporate Governance Approach. Edward Elgar Publishing. Sustainability Environment- Billabong Biz. 2017. [Online]. Available through www.billabongbiz.com/phoenix.zhtml?c=154279p=environment. [Accessed on 27th May 2017].