Question

Explain the following ethical considerations for senior financial management and directors of the company in relation to the preparation of the financial reports.

Your answer should be a minimum of 40 words but no longer than 100 words each
Conflict of Interest:
Confidentiality:
Disclosure Requirements - Disclosure of a Director’s Material Personal Interests
Circle the Correct Answer below i.e. Yes or No to the following statement:
In accordance with Sections 191-195 of the Corporations Act – Does a director of a public company who has a material personal interest in a matter need to disclose that interest to the other directors and refrain from attending or voting in meetings discussing that matter?
Answer: Yes / No

Answer 1

Ethical considerations for senior financial management and directors in relation to the preparation of financial reports include conflict of interest, confidentiality, and disclosure requirements.

Step-by-step explanation:

Ethical considerations for senior financial management and directors in relation to the preparation of financial reports include conflict of interest, confidentiality, and disclosure requirements. A conflict of interest occurs when personal interests interfere with professional responsibilities, leading to biased decision-making. Confidentiality refers to the obligation to keep sensitive financial information private, protecting the company's interests and stakeholders. Disclosure requirements mandate that directors disclose any material personal interests they have in matters related to the company and refrain from attending or voting in discussions about those matters.