ABSTRACT
Today most aspects of human life are commercialized and corporate entities have adapted to the needs of both large and small organizations, thereby morphing the commercial world. Performance measures have become more subjective. This includes financial performance too. The illusion of objectivity induced by accounting conventions has faded in the face of more complex commercial transactions that financial scandals have thrown up—financial derivatives, composite sales of goods and service, special purpose entities, among others. Corporate scandals have recurred at periodic intervals. The governance system of corporate plutocracy combined with separation of ownership and control has resulted in economic power being concentrated in the hands of a few. Corporate practices have evolved from a blend of voluntary, recommendatory and mandatory practices. A few 'evolved' companies with a long-term interest in business innovated new governance and reporting practices, much against the short-term interest of the incumbent management.
