Comments

  1. avatar says

    Hi?
    The lecturer said the remuneration committee (in which mostly are NEDs) decide the executives’ remuneration, however what confuses me is that, as mentioned in the video, the NEDs’ remuneration is in turn decided by the executives. It seems to me that it has the same drawbacks as ‘cross directorship’?evaluating each other’s performance? I hope i am making myself clear. :P

    Luke

  2. avatar says

    Dear sir,
    why formal arrangements should be in place for considering how to apply financial reporting principles??? Shouldnt the person preparing the accounts would already know these principles????

    • Profile photo of MikeLittle says

      I think I’m correct in saying that within IAS / IFRS there are a number of situations where alternative treatments are allowed as distinct from the benchmark.

      Surely it’s important that there is some degree of formality about which alternative should be consistently followed.

      Depreciating assets over their useful life is an accounting policy. But the rate at which those assets are depreciated (straight line, reducing balance, machine hour, sum of the digits) needs to be known and formalised. And then consistently applied

      It’s ok saying the preparer already knows but without the formalities of transparency and openness, if no-one else knows, how can anyone be certain that the preparer is following selected and acceptable principles

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