Answer to Question #79885 in Finance for Like Heron

Question

Why must directors provide adequate disclosure in financial reporting? (Answer needs to be specific with question asked)

Answer 1

Directors must ensure that the Company they govern keep adequate financial records to correctly disclose and explain transactions and the company’s financial position and performance. A failure of a director to take all reasonable steps to ensure a company fulfils this requirement contravenes the Corporations Act.
Source:
https://www.crowehorwath.com.au/insights/directors-what-are-my-financial-reporting-obligations/