Make Decisions in a Legal Context

Question: Discuss about theMake Decisions in a Legal Context. Answer: Hierarchy of Courts in Australia Hierarchy of Australian court contains various courts and tribunals at territory, state and federal level. The highest authority in the hierarchy is High Court of Australia. Hierarchy of courts in Australia is as follows: How are Industry Codes Prescribed, who Administers them and why do some Industries Prescribe their Codes and Policies? Five compulsory industry codes are given under Competition and Consumer Act 2010, and same is regulated by ACCC. Cited authority has also power to provide guidance to industry concerned towards the development of their own code. Following criteria is use to prescribe an industry code Documentation of a problem, and existing regulation that currently applies in that particular industry Efficacy of any industry self-regulatory measures Added regulatory or governing possibilities Determination of objectives prescribed industry code Cost benefit analysis After prescription of industry code notification is provided by ACCC and draft of Regulation Impact Statement is developed. After review, final Regulation Impact Statement is developed, and regulations related to it are formed, and codes are reviewed by experts. Developed codes are administered by participants of the industry. Reasons due to which some industries prescribe their codes and policies Participants of industry are generally better placed to adapt tailored codes of practice as they are convenient to business conditions and formed by considering circumstances faced by the industry. Developed industry codes will impose lesser compliance costs on business in comparison to regulation developed by the government. These codes are more flexible as it can be amended by participants of industry on the basis of their requirements. Formed codes are liberated from processes and permission of government and parliament. It will not increase costs of regulatory authorities in terms of application, obedience supervision and enforcement of any action In view of that, codes of conduct developed by the industry are usually to be favoured in comparison to industry codes in law. Furthermore, industry will be subjected to intervention by government in a situation of perceptible problem distressing other participants or customers which cannot be resolved by the market. Role of Financial Reporting Financial reporting should be done in accordance with the standards set by AASB. These standards are statutory requirements for businesses which aim at promoting confidence of investors. Financial reporting plays an important role in ensuring whether the companies comply with relevant regulations to reveal the true financial health of a company. Financial statements are also used by the owners and managers to make important decisions of the organisations. On the other hand, employees also need these reports for the purpose of collective bargaining agreements. Importance of Employee Compliance with Legislation and Protection Provided by Legislation to Employees The clearest result of compliance which comes to employees is that it reduces the risk of fines and penalties in the work area. Employee Compliance refers to obeying all the legal laws and regulations made in regards to employees on the manner they work in business. Employees feel more passionate to work in situation where they are appreciated with reward and incentives in a fair manner for their work. It is because, they feel financially secured and motivated towards their work. For this reason, it is significant to comply with the legislations. In business policy regulations related to wages, safety, employee benefits, and discrimination must be complied. It create a positive environment and enhances worker productivity. Safety and security rules help to reduce risk of injuries and accidents which reduce the profitability of a person. If the staffs feel that they are working in a professional and safe environment which is fair to them, they will remain in the organisation for long. Difference Between Duty of Care and Fiduciary Duty Fiduciary duty is a broader concept in the terms that it comprises of two major duties: the duty of loyalty and the duty of care. The duty of care bounds the directors to make business decisions after considering all available information and then act in a responsible manner which supports the company's interests. Directors are required to exercise care in making business decisions in order to fulfil their fiduciary duty. Relevance of Policies and Procedures with regards to Standards and Statutory Reporting A Policy can be considered as high-level strategic decision that formulates a principle-based approach to a subject. It is formulated for directing the purpose of reporting. A Policy is implemented through instruments, such as procedures or supporting documents, which give the necessary guidelines and devise a proper method required to prepare a financial statement. This outlines a hierarchy of Procedures by providing Supporting documents in order to sets out the necessities for each step. All Policies and Procedures are developed and monitored in accordance with the framework of established standards and the requirements of statutory reporting. Role and Importance of ASX in Organisations Risk Management and Governance The role of ASX is to ensure that all the listed companies follow the framework which it has developed for corporate governance and management of risks associated with capital markets. The guidelines provided by ASX have added a high standard of corporate governance in Australia. Corporate governance can be considered dynamic force that keeps developing and plays an important role in estimating the cost of capital in the global capital market. It assists the Australian companies to compete globally and promote investor confidence both in Australia and overseas. However, it is also important to review those practices on a regular basis to ensure that they endure imitating developments on local and international level. It also promotes high standards of transparency regarding the practices of corporate governance of listed entities FSRA and Its Functions The Financial Service Reforms Act was commenced on 11th March 2002 for examining regulatory requirement which applies to the financial service industry. It brings all types of financial services under one guiding framework. The main objective of FSRA is to ensure easy comparison of complex financial products so as the consumers can take appropriate decisions regarding their acquisition. The Act provides a license to all businesses engaged in providing Financial Services to carry on their trade and thereby establishing a code of conduct for them. The Act is regulated and controlled by The Australian Securities and Investment Commission (ASIC).