Former GE CEO Jack Welch called shareholder value maximization the dumbest idea in the world.

Required:

Read the 2 February 2015 Forbes article by Steve Denning Salesforce CEO slams The Worlds Dumbest Idea Maximizing Shareholder Value and the 2 April 2016 Economist article Analyse this!

Using the AREA schedule on the next page, discuss why financial reporting subscribes to the view of shareholder value maximization. Conclude whether a change is necessary and how it would need to change to allow for a different view.

Additional resources you might find helpful in answering this question.

AASB (2014) Conceptual Framework. http://www.aasb.gov.au/admin/file/content105/c9/Framework_07-04_COMPjun14_07-14.pdf (viewed 19 January 2017).

IIRC (2013) International Integrated Reporting Framework. http://integratedreporting.org/wp-content/uploads/2013/12/13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-2-1.pdf (19 January 2017).

Denning, S (2011) The Dumbest Idea in the World: Maximizing Shareholder Value. Forbes, 28 November 2011, http://www.forbes.com/sites/stevedenning/2011/11/28/maximizing-shareholder-value-the-dumbest-idea-in-the-world/#fa9f19c22241 (19 January 2017).[1]

The articles mentioned here are all available on Blackboard.

ANALYSE (30 50 words)

Identify the issue and why it matters. Determine what you need to find out.

RESEARCH (300 words)

Discuss relevant facts and evidence, or issues.

EVALUATE & ANSWER (50 100 words)

Provide your opinion based on your discussion of relevant facts, evidence, or

[1] The required reading (i.e. the 2015 Forbes Article) is a summary version of the 2011 Article. Read this article if you need more context.

Former GE CEO Jack Welch called "shareholder value maximization the dumbest idea in the world Required. Read the 2 February 2015 Forbes article by Steve Denning "Salesforce CEO slams Thee World's Dumbest Idea' Maximizing Shareholder Value and the 2 April 2016 Economist article "Analyse this!" Using the AREA schedule on the next page, discuss why financial reporting subscribes to the view of shareholder value maximization. Conclude whether a change is necessary and how it would need to change to allow for a different view Additional resources you might find helpful in answering this question .AASB (2014) Conceptual Framework. http://www.aasb.gov.au/admin/file/content105/c9/Framework07 04 COMPiun14 07-14.pdf (viewed 19 January 2017) IIRC (2013) International Integrated Reporting Framework. content/uploads/2013/12/13-12-08-THE http://integratedreporting.or INTERNATIONAL-IR- Denning, S (2011) "The Dumbest Idea in the World: Maximizing Shareholder Value. Forbes, 28 November 2011 http://www.forbes.com/sites/stevedenning/2011/11/28/maximizing-shareholder value-the-dumbest-idea-in-the-world/#fa9f19e22241 (19 January 2017).1 FRAMEWORK-2-1.pdf (19 January 2017) The articles mentioned here are all available on Blackboard ANALYSE (30- 50 words) Identify the issue and why it matters. Determine what you need to find out. RESEARCH (300 words) Discuss relevant facts and evidence, or issues. EVALUATE & ANSWER (50- 100 words) Provide your opinion based on your discussion of relevant facts, evidence, or issues