Question 3

NameMatric noTEOH KHAR CHUAN219924AHMAD SYAZWAN SHAH BIN SHAH HEADAN208687

REWADEE A/P PLEANG224146

NORSUFIKA BINTI MOHD NOOR221957

NURUL ATIQAH BINTI ISMAIL @ MENDAIE221506

The management decide to issue a partition to ensure that CEO will stop down due to the losses in the company. Board of Director (BOD) insist the company to pay to continue paying the director remuneration and dividend for the BOD. On the other hand, the employees demand that the company should secure their social welfare in the company by considering the increase in the public consumption, the employees demand that their salary to be increase. As a financial planner and consultant, you have to advice the following.YEARPROFIT/(LOSS)CAUSES2010RM1 Million2011(RM1 Million)2012RM3 Million2013(RM5 Million)Due to the increase in fuel and globalization2014(RM1 Million)Due to MH370 and MH17Advise the BOD what are the directions they have to follow in pursuing through a legal regulatory approach.

Accounting standards dominate accountants work.Standards are being constantly changed, deleted and/or added.They provide practical & handy rules for the conduct of the accountants work.They generally accepted as firm rules, backed by sanction for nonconformity.

Fully understanding of regulation would require a much deeper analysis of the many aspects associated with the imposition of regulation. Regulation is used to direct societys action in a way considered the best for that society.Command and controlregulators take a clear stand as to what activities are considered acceptable and what not with strictly enforced and severe penalties imposed on the latter. Self-regulationThis is a less severe regulatory strategy then command and control. It is usually employed in relation to professional bodies or associations. Such organisations develop systems of rules that they monitor and enforce against their members. Generally acceptable accounting principles and later accounting standards were developed by professional accounting bodies to avoid government control of accounting practice. Company A should disclosures about the aggregate remuneration of the directors.Prepare directors remuneration report including detailed information about each directors remuneration.Comply with accounting standards to indicate financial statements are true and fairAs an consultant, what are the accounting structures you need to embark on for considering a good strategic management for company?

The elements as essential foundation of accounting that govern the development of accounting techniques.The elements are:A statement of the objectives of financial statements.A statement of the postulates and theoretical concepts of accounting concerned with the environmental assumptions and the nature of the accounting unit.

A statement of the basic accounting principles. These are based on both the postulates and theoretical concepts.

A body of accounting techniques. These are derived from the accounting principles.

The accounting postulates are basic assumptions or fundamental propositions concerning the economic , political and sociological environment in which accounting must operate . Provide a foundation for the accounting process.

Holds that each accounting unit separate and distinct from its owner and other firmsDistinguish between business and personal transactionsOne way to define economic unit responsible for economic activities and control of the unitDetermine economic interest for various users of accounting information

Accounting is a measurement and communication process of the activities of the firm that are measurable in monetary terms.Employee satisfaction and percent of international employees are not transactions that should be included in the financial records.

Justifies the valuation of assets on a non liquidation basis and provide the basis for depreciation or impairment of asset. Fixed assets are depreciated over their useful life rather than shorter period of liquidation. Support benefit theory that encourage the manager to forward looking and motivate investors to commit capital to an enterprise.

Economic life of a business divided into artificial time periods.Holds that financial reports depicting changes in the wealth of the firm should be disclosed periodically. More companies issue interim report for more update and reliable information.

What do you think the theoretical foundation that you need to follow in resolving these issue?

PARADIGM is the right theoretical foundation that need to follow in resolving this issue.We need to observe performance of the company and review the document before making any decision and that is under Anthropological.From this case we need to identified to certain financial analysis under True Income.

As a consultant, now are you going to cater the issue in order for the company to increase it profitable income. What are the approaches do you think that is feasible for the company to undertake?

Focus on a concept of general economic welfareChoice of different accounting techniques depend on their national economic good.Company A should use this approach because the accounting technique will change depend on the particular economic situation.This approach also can secure their employees social welfare.