Corporate governance Essay Example | Topics and Well Written Essays - 2250 words

bodily governance - Essay Examplemanagement styles with those of the U.S. Many of the largest British multinationals, such(prenominal) as GlaxoSmithKline and BP, look at merged with or acquired large U.S. firms, and almost all leading U.K. companies derive substantial proportions of their revenues from the U.S.The differences in management style and culture have become far more nuance. Large British multinationals probably remain more international and cosmopolitan in their outlooks than their U.S. counterparts, slower to act and less disposed to adopt the latest management fads, and less ruthless in dealing with failure and under-performance. However, there is vast industry and firm differences.Under UK generally accepted accounting principles bazar values are assigned to identifiable intangible assets only if the identifiable intangibles are capable of being disposed of or settled separately, without disposing of a backing of the entity.Under US GAAP, identifiable assets are s eparately valued and amortised over their useful lives. The separately identifiable intangible assets included in the US GAAP balance sheet are principally comprised of brand rights, which are being amortised over periods between 25 to 30 years.US GAAP requires the Group to establish all derivatives on the balance sheet at fair value. The Group has decided not to satisfy the SFAS No. 133 Accounting for Derivative Instruments and Hedging Activities (SFAS 133) requirements to grasp hedge accounting for its derivatives, where permitted, and accordingly movements in the fair value of derivatives are recorded in the profit and loss account. (Annual Report and Accounting, 2005)The new era of extend businesses and increased awareness in the stakeholders have given importance to the notion of Corporate Governance. The execution of the notion will have important consequences for investors, companies, and, critically, for the stock and former(a) financial markets of UK. With the increasing globalisation when every country finish be seen as an opportunity for the investors the lack of understanding of effective corporate governance can adversely effect the investment intentions of investors. Nowadays corporate governance is seen as the key of attracting investors. Capital flow seems directed towards the companies, which practice fair and transparent shipway of governing their organisations. With the changing global business scenario the need of understanding and effective practise of fair and technologically advance corporate governance has also increased. In my speech I will first explain the notion of Corporate Governance.ICAEW (2002) has explained corporate governance in a very effective and comprehensive modal value as Corporate governance is commonly referred to as a system by which organisations are directed and controlled. It is the process by which company objectives are established, achieved and monitored. Corporate governance is concerned with the relatio nships and responsibilities between the board, management, shareholders and other relevant stakeholders within a legal and regulatory framework.