Essay: Financial Accounting Issues (Accounting as a governance mechanism)
The requirement to disclose the details of executive remuneration should not be dispensed with. According to the shareholders, they should get clear accounting records with all the reports of the expenditures the business had over a reporting period. This way, the shareholders will feel that the accounting records are prepared following the recommended accounting standards.
According to the companies Act 1993, it is mandatory that the remuneration of the executives exceeding $100,000 be included in the accounting reports (Drever, Stanton & McGowan, 2007).