ACCA Strategic Business Leader (SBL) Practice Exam

Which of the following is NOT a mandatory disclosure for governance?

1. Corporate governance disclosures

2. Statement of financial position

3. Personal income tax filings

4. Auditors report

The correct answer is: Personal income tax filings

Personal income tax filings are not considered a mandatory disclosure for governance in the context of corporate governance and reporting standards. Mandatory disclosures typically focus on information that is crucial for stakeholders, such as shareholders, creditors, and regulators, to assess the governance and financial health of an organization. Corporate governance disclosures provide insights into the governance structure, practices, and policies of an organization, which is essential for transparency and accountability. The statement of financial position, which outlines a company's assets, liabilities, and equity, is part of the financial statements required by accounting standards, serving as a key tool for stakeholders to evaluate the company's financial status. An auditor's report offers an external opinion on the accuracy and compliance of the financial statements, which is vital for ensuring credibility in financial reporting. In contrast, personal income tax filings pertain to individual tax obligations and are unrelated to the organization's governance disclosures. They do not contribute to the stakeholders' understanding of the company’s operations or health, making them irrelevant in this context. This distinction establishes why personal income tax filings do not fall within the mandatory disclosures for corporate governance.