Name

Matric no

TEOH KHAR CHUAN

219924

AHMAD SYAZWAN SHAH BIN

SHAH HEADAN

208687

REWADEE A/P PLEANG

224146

NORSUFIKA BINTI MOHD

NOOR

221957

NURUL ATIQAH BINTI ISMAIL

@ MENDAIE

221506

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

YEAR

PROFIT/(LOSS)

CAUSES

2010

RM1 Million

2011

(RM1 Million)

2012

RM3 Million

2013

(RM5 Million)

Due to the
increase in fuel
and globalization

2014

(RM1 Million)

Due to MH370
and MH17

Advise 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.

practical &
handy rules for the conduct of

They provide

the accountants work.

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 control

regulators 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-regulation
This 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 fair

As 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:
I. A statement of the objectives
of financial statements.

postulates
and theoretical concepts of

II. A statement of the

accounting concerned with the

environmental assumptions and
the nature of the accounting unit.

III.A statement of the basic

accounting principles. These
are based on both the
postulates and theoretical
concepts.
IV.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 firms
Distinguish between business
and personal transactions
One way to define economic unit
responsible for economic
activities and control of the unit
Determine economic interest for
various users of accounting
information

measurement
and communication process

Accounting is a

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.

observe
performance of the company
and review the document

We need to

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?

ACCOUNTIN
G THEORY
APPROACH

TRADITION
AL

NONTHEORETIC
AL

REGULATO
RY

THEORETIC
AL

 Focus on a concept of general economic

welfare
Choice 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.