Monitor Corporate Governance Activities for ABC - myassignmenthelp

Question: Discuss about theMonitor Corporate Governance Activities for ABC Learning. Answer: Introduction ABC learning was recognised was recognised for its excellence in providing early childhood educational services. The listing of this company was seen in Australian securities exchange with total market capitalisation of AUD $2.5 billion as on March 2006. The company faced sub-prime mortgage crisis due to debt repayments and signing off on the financial reports citing which needed to be casted as per previous years of the profits (McGrathNicol, 2017). Determination of whether organisation complied with the existing legal and accounting standards It has been discerned that the main accounting standards complied by ABC learning during the period of 2007-2008 was as per Corporations Act 2001. It has been further determined that the remuneration report was prepared as per section 300A. The presentation of the financial statements where done as per accounting standards AASB 101 (Asic.gov.au, 2017). Accessing of the audit reports, the methodologies applied and the recommendations The conduction of the audit has complied with the independence requirement of Corporations Act 2001. The financial report of A.B.C learning has been conducive in presenting a true and fair value of groups financial position as on 30th June 2007. However the main concern was arise due to the dramatic expansion which ultimately led to company being defunct. In addition to this, the company was pleaded guilty for failure to enclose and was fined with an amount of $ 1300. The consolidation of the financial report is also seen to comply with international financial reporting standards as per the disclosures made in Note 1. As per the recommendations made by the auditors on AASB 124 the remuneration disclosure has been contained in the directors report. As per the opinion of the auditors it has been discerned that the company is subject to audit and complied with the aforementioned accounting standards (Ferrierhodgson.com, 2017). Review of internal organisational practices along with corporate governance obligations The review of the internal organisational practices has been identified with the corporate governance statement. Some of the main obligations of corporate governance have been discerned with commitment for spending sufficient time in carrying out the necessary duties as a director, maintaining confidentiality with the legal requirements and ethical standards and continuous disclosure of coordinating with the ASX rules of the company. Some of the other form of internal organisational practices has been discerned in form of giving independent professional advice and regular performance review and evaluation. Identification of appropriate regulatory authority Some of the main forms of the regulatory body of the company have been identified with Regulation Impact Statement (RIS), which is responsible for providing financial information to assess and monitor the financial viability on a regular basis. This is also responsible for creating new aesthetic power for enabling independent audit of childcare provider and associating the concerns about financial viability. And the regulatory authority has been discerned with new National Quality Framework (NQF) for the purpose of early child care and education. This has been identified with a total funding of $ 1.9 million to help achieve the ongoing stability in childcare facilities. The various types of internal role have been assessed with external management consultants and the audit committee. Reviewing the content of internal financial reports, statutory returns and processes As per the review of the internal financial reports and statutory return has stated on the $ 1.78 billion loss in the financial year 2008, although the company was in the position of insolvency in the mid 2007 itself. The final drafts for the FY June 30, 2008 has resulted in total impairment charges of $1.168 billion, and a $364 million loss due to the disposal of the majority stakes in the US business in ABC. Performance indicator signifying compliance with corporate governance requirements Based on the findings of the performance indicator it has been discerned that the company is seen to comply with setting and formulation of appropriate strategy for the operations. The company has been further identified to review the entire system as per the compliance control and adherence with the accountability systems. It has been further identified to be associated with appropriate measures related to delegation of authority. Some of the other areas of the CG practices as per the performance report have been evident with providing formal policies for the appointment of the directors and contribute to the expectations. Revealing made in performance indicator of the company with regard to key result areas On 12 December 2006 ABC learning centre was identified as the largest childcare provider in US. In addition to this, with the acquisition made in U.K.s Busy Bees Group, Ltd, the companys expansionary measures were seen to be aggressive in outsourcing of childcare services and including employees from Australian Department of defence. On March 2008, the company announced major sponsors as Adelaide 36ers an further sold their 60% of childcare business to Morgan Stanley. Built on the performance indicators, the company voluntarily liquidated in the same year and was acquired by good start childcare in December 2009. It has been further seen that the company was rebranded as good start "Goodstart Early Learning", and registered charity owned by Brotherhood of St Laurence, Mission Australia, The Benevolent Society and Social Ventures Australia. Evaluating information technology indicators along with key result areas The key use of the information technology has been performed with distribution of dividend as per date paid, dividend per share and total dividend. The company has been further seen to protect the groups financial asset and adverse market fluctuations by hiring of a special personal for IT. The directors performance has been further seen to be structured in an orderly manner with the use of information technology. This is evident with including elements of remuneration and adherence of the same as per non-executive directors, the directors and Australia senior executives. Report plans needed to ensure compliance requirements are met within the deadline As per the compliance requirement, the companys income statement and interest expense has been classified in the balance sheet and the convertible preference shares were converted to ordinary shares within the same time period. The developers of the business took the initiative of purchasing Judas private limited with the diary getting worse pricing of not less than $ 26.8 million. This has been seen to be adjusted as per five-year CPI (Rlf.com, 2017) Description of main failures in compliance which have occurred and remedy for the same The company was identified as one of the largest publicly listed childcare service provider with market capitalisation of more than $ 4.1 billion. However, there was an unexpected drop of 42% profit in 2007 and inability to repay a debt amount of $ 1.8 billion which finally triggered the downfall of the company. The main remedy for this could have been taken with a more stringent policy for estimating the date for a particular financial year and improving the liquidity aspects such as keeping more current assets than current liabilities (Mondaq.com, 2017). Conclusion The report has been able to establish the fact that although ABC learning centre and adhered to the appropriate accounting standards and internal corporate governance structure, there has been several controversies associated to increasing debt servicing obligations and auditors failing to sign of its accounts. The main form of problem was seen with reliance on external capital supported equity ended investors and further leading to liquidity crisis. The CG practice of ABC learning centre has been further identified to review the entire system as per the compliance control and adherence with the accountability systems. References ABC Learning | ASIC - Australian Securities and Investments Commission. (2017).Asic.gov.au. Retrieved 9 November 2017, from https://asic.gov.au/about-asic/media-centre/key-matters/abc-learning/ ABC Learning Centres Limited - McGrathNicol. (2017).McGrathNicol. Retrieved 9 November 2017, from https://www.mcgrathnicol.com/case-studies/abc-learning-centres-limited/ Asic.gov.au. (2017).ABC Learning | ASIC - Australian Securities and Investments Commission. [online] Available at: https://asic.gov.au/about-asic/media-centre/key-matters/abc-learning/ [Accessed 9 Nov. 2017]. Easy as ABC Insolvency and the Relation-Back Day - Insolvency/Bankruptcy - Australia. (2017).Mondaq.com. Retrieved 9 November 2017, from https://www.mondaq.com/australia/x/251926/Insolvency+Bankruptcy/Easy+as+ABC+Insolvency+and+the+RelationBack+Day Ferrier Hodgson - ABC Learning Centres Limited. (2017).Ferrierhodgson.com. Retrieved 9 November 2017, from https://www.ferrierhodgson.com/au/creditors/abc-learning-centres-limited Third Circuit Affirms Chapter 15 Recognition of Australian Liquidation Proceeding as Foreign Main Proceeding - Richards, Layton Finger - Delaware Law Firm. (2017).Rlf.com. Retrieved 9 November 2017, from https://www.rlf.com/5402