Page 19 - CIMA OCS Workbook February 2019 - Day 2 Tasks

FINANCIAL REPORTING AND TAXATION (F1) - PRACTICE TASKS

EXERCISE 2 (CORPORATE GOVERNANCE)

UPDATE

Trigg Adventure has recently tendered for contracts to supply commercial products to
government buyers.

TRIGGER
Today you receive the following email from Sally Gomez.

From: Sally Gomez, Sales Director.
To: Finance Officer
Subject: Corporate governance.

As you may be aware, Trigg Adventure recently spent a lot of time and effort to tender for two
commercial contracts with government bodies to supply outdoor play areas. I have just received
confirmation that neither tender was successful, which is clearly a disappointment.

I obtained some feedback from a contact which indicated that our products and indicative selling
prices were competitive. Apparently, what did let us down was one or two issues associated with
corporate governance. I was surprised by this as I understood that Trigg Adventure normally tries
‘to do the right thing’ but clearly something is amiss. I’m also aware that, as an unlisted company,
Trigg Adventure is not obliged to comply with corporate governance requirements, so I am a little
confused by this.

Could you produce a set of briefing notes that explains the key elements of corporate governance
that I can present at the next directors’ board meeting? Your briefing notes should also include
steps that Trigg Adventure could take to improve corporate governance.
If the board has an understanding of the issues involved, it can then start to put in place
appropriate policies and procedures that Trigg Adventure could include within tender documents
that may enable future tenders for government contracts to be successful.
Sally Gomez (Sales Director)

TASK

Prepare the briefing notes requested by Sally Gomez.
(Time allowed 30 Minutes)

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