Discuss about the Determination Of The ASX Corporate Governance Principles For JB-Hi-Fi.
JB-Hi-Fi is regarded as one of the Australian and New Zealand retailer of the user goods that specializes in video games, DVD, electronic home appliances, hardware, mobile phones and certain number of Telstra Services (JB Hi-Fi., 2018). JB-Hi-Fi is publicly listed company on ASX that has its headquarters organisation at the Chadstone Shopping Centre in Melbourne. The company has 112 stores that combines stores from Victoria, New SouthWales, ACT and South-East Australian nations.
The company was established in the suburbs of Melbourne by John Barbuto in 1974. Later the company was sold in 1983 to Richard Bouris. JB-Hi-Fi has expanded trade that ranges from marketing of music to CD and now to store of the consumer electronics (JB Hi-Fi., 2018). The primary objective of study is considered with addressing the implications of Corporate Governance Principles of JB-Hi-Fi and provide a detailed description of the corporate audit risks.
The board of JB-Hi-Fi identifies the significance of corporate governance, ecological and communal subjects to its stockholders, dealers and consumers to uninterruptedly assess and monitor the expansions in the corporate governance that are applicable to the company (Tricker & Tricker, 2015). The company is committed in making sure that the trade is performed in a principled way in compliance with the highest values of corporate governance. The relationship among the board and the management represents a strong engagement.
The corporate governance strategy of the JB-Hi-Fi is directed towards the integral part of encouraging the innovation and diversification with new products, technologies with proper control of locations in a responsible manner (Council & Exchange, 2014). JB-Hi-Fi identifies the significance of governance, ecological and communal subjects to its stockholders, contractors and consumers. The board continuously examine and observe and develops the corporate governance that are applicable to the entities and controls. The managements and the administration of the organization is dedicated to make sure the business is performed in the ethical manner and are in compliance with the highest standard of corporate governance.
The company complies principles of acting ethically and responsibly. The company has the code of conduct that ensures that all the employees understand it and follow this all the time (Du Plessis et al., 2014). The corporate governance principles include the responsibilities of providing safe working environment that are free from harm and illegal workshop performance for all affiliates, consumers, people and dealers.
The corporate governance report states that JB-Hi-Fi protects and keeps the information confidential in compliance with the law (Christensen et al., 2015). JB-Hi-Fi complies with the rules and principles that are application in the functions of the company and make sure that the team members possess the opportunity of raising the concerns under the code of conduct and take the opportunity of raising any concerns under the code of conduct. The team members of the company acts in good faith and with integrity of and profession at all times.
JB-Hi-Fi group rules and practices complies with the physical respects with the third edition of the ASC Corporate Governance Council Principles and Recommendations (JB Hi-Fi., 2018). In the financial year of 2017 JB-Hi-Fi has complied with the spirit of principles that are contained in the ASX recommendations.
The main role of the board is to safeguard and progress the long term worth of the shareholder (Lama & Anderson, 2015). The board is held responsible towards its shareholders for the performance of the business and it guides and screens the commercial activities on behalf of the shareholders. The major accountabilities of the board comprise of supervision of the commercial dealings overseeing the management objectives. The board responsibly oversees the reliability and integrity of the group accounting policies (JB Hi-Fi., 2018). The board of directors responsibly makes the disclosure practices by overseeing the company process for making disclosure in the market.
The remuneration committee is assigned with the responsibility of reviewing and making disclosure relating to the outline, construction and significance of decision-making officers and non-executive directors.
Nature of the Company:
JB-Hi-Fi is an electronic company and nature of the business involves large range of retail home entertainment products (JB Hi-Fi., 2018). The company’s nature of business includes specializing in range of electrical home appliances with Blu-rays, DVD, CD and providing number of Telstra Service. The company provides products both in terms of retail stores and online products.
Sales in the previous year of JB were held by wide range of market demand relating to third party content cards (JB Hi-Fi., 2018). Apart from the impacts of the cards the increased market demand led to rise in sales by 3.4%. During the year 2016 the company acquired 100% of The Good Guys being one of the leading retailer of the home-based applications and being the leading retailer in the Australian market for electronics.
The acquisition helped the company in creating a world class leading demand that ultimately allowed for the significant amount of expansion of the company’s capability in the market of home appliances (Shimeld et al., 2017). Additionally the company holds a noteworthy amount of marketplace share in majority of produce categories. The sales were highly raised by the marketplace demand for the third party prepaid contents cards.
JB-Hi-Fi recognizes certain financial, ecological and communal sustainability risks. The financial sustainability risks are defined as the risks to the capability of JB-Hi-Fi present operations and its present level of economic productions over the long period of time (Gitman et al., 2015). The company is uncovered to several economic sustainability risks that have real actual possibilities of considerably creating an impact on the company’s capability to generate or preserve for its stockholders in respect of both short, medium and long term.
The company faces the environmental risks are risks that are posing threat as the continuing operation in the way that does not comprises the well-being of the ecologies in which it operates during the long run (Beekes et al., 2015). Irrespective of the environmental sustainability risks the company has applied numerous initiatives to reduce the influence of the business functions on the atmosphere.
Additionally, the company faces risks that are related with the communal sustainability risks. The social risks to the business represents the ability of the company to endure functioning in a way that meets the recognized communal standards and requirements over the period of long term (William et al., 2015). Irrespective of the social risks the company in a social responsible way believes that it is necessary to return to the community as well.
The company faces business risks that might create a threat in future relating to the future operations and financial performance of the company. The market in which the company operates continues to be highly competitive and any form of increased competition may result in decline in the revenue and profitability of the organization (Arens et al., 2016). Additionally, JB-HI-FI also faces the financial risks since it is exposed to the risk of foreign currency and interest rate risks. However, there are policies in the organization that considers creating a balance of risk and rewarding as much as practicable in optimizing the returns from the business activities to meet the anticipations of the shareholders.
The management of the JB-HI-FI has implemented the risk management procedure in the daily practices so that management can minimize the risks and attain the objective of policy (Cohen & Simnett, 2014). To minimize the risk the management is sets down the culture to encourage the management of risks in every business aspects and supervise the application of sound risk management practices across the company. The management identifies, monitors and assess the material risks that creates an impact on the company’s business activities on a continuous basis.
The management reports the ARM committee relating to the JB-HI-FI risk management activities and reports the status of material risks that creates an impact on the business activities (Messier et al., 2015). The company seeks to reduce the impact of risks by implementing numerous financial instruments namely the derivative financial instrument. The company does not enters into or trade the financial instruments together with the financial instrument for speculative purpose.
Conclusion:
The report successfully enlightens the application of ASX Corporate Governance Principles and provides that JB-HI-FI has assured that the appropriate corporate governance principles are followed. The report highlights that the boards identifies the interest of the shareholders and serve in the best interest. The risk assessment of JB-HI-FI provides that the company is exposed to numerous economic, social, business and financial risks however these risk are considered inherent for the business. The appropriate risk management strategies are in place to mitigate the business risks of JB-HI-FI.
Reference List:
Arens, A. A., Elder, R. J., Beasley, M. S., & Hogan, C. E. (2016). Auditing and assurance services. Pearson.
Beekes, W., Brown, P., & Zhang, Q. (2015). Corporate governance and the informativeness of disclosures in Australia: A re?examination. Accounting & Finance, 55(4), 931-963.
Christensen, J., Kent, P., Routledge, J., & Stewart, J. (2015). Do corporate governance recommendations improve the performance and accountability of small listed companies?. Accounting & Finance, 55(1), 133-164.
Cohen, J. R., & Simnett, R. (2014). CSR and assurance services: A research agenda. Auditing: A Journal of Practice & Theory, 34(1), 59-74.
Corporate Governance | JB Hi-Fi. (2018). Jbhifi.com.au. Retrieved 25 April 2018, from https://www.jbhifi.com.au/General/Corporate/Shareholder-Matters/Corporate-Governance/
Council, A. C. G., & Exchange, A. S. (2014). Corporate governance principles and recommendations . ASX Corporate Governance Council.
Du Plessis, J. J., Hargovan, A., & Harris, J. (2018). Principles of contemporary corporate governance. Cambridge University Press.
Gitman, L. J., Juchau, R., & Flanagan, J. (2015). Principles of managerial finance. Pearson Higher Education AU.
JB Hi-Fi Corporate | JB Hi-Fi. (2018). Jbhifi.com.au. Retrieved 25 April 2018, from https://www.jbhifi.com.au/General/Corporate/Shareholder-Matters/Financial-Annual-Reports/
Lama, T., & Anderson, W. W. (2015). Company characteristics and compliance with ASX corporate governance principles. Pacific Accounting Review, 27(3), 373-392.
Messier, W. F., Glover, S. M., & Prawitt, D. F. (2015). Auditing & Assurance Services: A Systematic Approach. Qing hua da xue chu ban she.
Shimeld, S., Williams, B., & Shimeld, J. (2017). Diversity ASX corporate governance recommendations: a step towards change?. Sustainability Accounting, Management and Policy Journal, 8(3), 335-357.
Tricker, R. B., & Tricker, R. I. (2015). Corporate governance: Principles, policies, and practices. Oxford University Press, USA.
William Jr, M., Glover, S., & Prawitt, D. (2016). Auditing and assurance services: A systematic approach. McGraw-Hill Education.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download