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Showing posts from April, 2009

P1 answers: AAA Ethics Model

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- relevant to P1 candidates.



From left to right:
Pic 01: Disneyland, the happiest place on earth
Pic 02: Most memorable ladies
Pic 03: Your reward for graduating, be there!



Dear Intensive Practice Sessions P1 candidates,
As promised, the answer to the case study involving Disney Limited.

Remember, work very hard.

Marcus





ANSWER TO CASE STUDY: Ethics model AAA (AMERICAN ACCOUNTING ASSC.)
1. WHAT ARE THE FACTS?
The plant is in financial distress, closure is inevitable. Disney wants the contract completed or HS will face lawsuits as per contract.

2. WHAT ETHICAL ISSUES INVOLVED?
Whether the employees have the right to know about their future, albeit bleak since it involves their employment security. Naturally, if they have been told, key staff will find employment elsewhere, resulting in joepardising the Disney contract.

If employees are told, shareholders risked losing more with the contract unfulfilled. The ethical issue here is to what degree is the Board responsible to ‘both’ shareholders and e…

ANTIDOTE TO STRESS = HUMOUR

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Dear all,

Exams are around the corner i.e. your mock exams and of course the real exam. Stress is high. A good antidote is exercise and at times humour.

So here is some serious humour, in which I think many of you guys may agree with me that there is an angle of truth to it. Ha Ha. Women is the universe most mysterious, intriguing and potentially igniting being. It takes eternity for the (dumb) men to understand this wonderful, beautiful and meaningful being.

SERIOUS HUMOUR I : MALE AND FEMALE BRAINS
What goes through your mind when someone says "Lets go for a drink"?‏





Beer Commercial, "Thank God you are a Man."







SERIOUS HUMOUR II : MALE AND FEMALE FLIES
A woman walked into the kitchen to find her husband stalking a round with a fly swatter."What are you doing?" she asked.

"Hunting flies," He responded.

"Oh, killing any?" She asked.

"Yep, three males, two females," he replied.

Intrigued, she asked, How can you tell?

He responded, "Th…

MALAYSIA STOCK EXHANGE: BEAR MARKET RALLY

-related to P3, P5 and Uncles & Aunties in Malaysia whose favourite investment motto is "Buy High, Sell Low".

1. The Bursa Malaysia Stock Market has risen by 100 points past 2 weeks to 963 Composite Index. It usually is a precursor to future economic performance of 6 months. However, is it really a sign of recovery? I have my reservations. Its simply too early to cry out, "All's well."

2. But the current reality is all those who invested, say 4 months ago, would profit handsomely. Assuming they buy blue chip stocks. For instance, Topglove Berhad rose from RM3.50 to RM5.50 per share since December 30, 2008. An 57% rise.

3. As a general rule of thumb, the stock market looks to the future for its current performance. The past is well past. Still it tells us what kind of future it should bring. In this case, one should see in the past say the 2008, how much damaged the economic global recession has caused.

4. A simple logic, is if a patient is in out-patient treatm…

ANALYSING STEVE SKIDMORE

-related to P3 candidates

P3 examiner has broke away from the conventional step of setting the exam paper. This June 2009 will be his debut show of what he is truly interested. One can only suspect that his consultancy background in IT and being a former Paper 2.1 examiner, his approach will be more advisory capacity.

I have inserted a good link "Where Technology is Business" for all of you to read and familiarise with the practical exposures. On the left side bar is category and link named ENHANCING ACCA SUCCESS LINK : http://www.zdnetasia.com/news/business/

A good article to start with is the Takeover of Skype for a sum of US$1billion. Original owners are buying back with intention to list it next year. This case study shows finance strategy at play and the rewarding aspects of innovative culture that leads to the development of Internet Phone free services. Yet Skype can still generate revenues excess of US$500million in 2008. A case of offering free services but by word of …

P3 Business Analysis: Changes (Steve Skidmore)

- Relevant to all P3 ACCA candidates. Extracted from Student Newsletter, January 2009.

The Paper P3, Business Analysis Study Guide currently defines the exam format as follows:

This question is worth 50 marks and will be closely based on the capabilities defined in Sections A, B, and C of the syllabus, and supported by capabilities defined in Sections H and I. It will occasionally be supported by capabilities defined in Sections D, E, F, and G of the syllabus.

The case study scenario will always include quantitative information, which might include financial data.

Section B will include three discrete questions, each worth 25 marks. Candidates must answer two questions in this section. At least two of the questions in this section will be based on capabilities defined in Sections D, E, F, G, and I of the syllabus. At most, one question in this section will be based on capabilities defined in Sections A, B, and C of the syllabus. Capabilities defined in Section H of the syllabus may be use…

MALAYSIA POOR RATING IN CORRUPTION PERCEPTION INDEX

- Relevant to P1 and P3. Also of interest to all Malaysians."Corruption is stealing from the poor." (Latin Proverb)

Malaysia's corruption perception index remains unchanged from year 2007 at 5.1. While the score remained the same, the country had, however, slid from 43rd to 47th place in the ranking of 180 countries. It rates them on a scale of zero (highly corrupt) to 10 (highly clean). Year 2008, Denmark, New Zealand and Sweden share the highest score at 9.3, followed by Singapore at 9.2.President of Transparency International Malaysia Tan Sri Ramon Navaratnam said that this development was disconcerting. Malaysia's CP index has fluctuated between 4.9 in 2002 and 5.1 in 2008."What the latest findings show is that what the government has done so far to eradicate corruption has failed to make an impact. People don't believe any of these changes are real or meaningful for fighting corruption in the public sector required strong political will." Navaratnam…

WONDERFUL TO BE WIVES OF STATESMEN

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- Relevant to P1 and partially P3. Also of interest to all Malaysians.

PIC 01: DISNEY, THE HAPPIEST PLACE ON EARTH

PIC 02: PRACTICE GOOD GOVERNANCE?

Author’s official political stand: As an independent observer and politically neutral, the article below is intended to demonstrate practical knowledge and application of ACCA Professional Papers, P1 & P3. The author does NOT endorse, support or recommend affiliation to any political party.
Corporate Governance at Play
1) Balkis was the welfare and charity organization set up by the wives of Selangor’s elected representatives during Barisan Nasional (BN) rule. RM10million was transferred to Bakti, the charity organization for wives of federal government ministers.

2) The Selangor Select Committee on Competency, Accountability and Transparency (SELCAT) concluded its public inquiry into the expenses of the now-defunct Balkis on Wednesday, March 31, 2009.

Here are a few interesting facts found on Balkis:

3) State investment agency Permodalan …

CONSUMERS TRADING DOWN: LESSONS FROM GLOBAL RECESSION

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-relevant to P3 and sensible youths (by UMNO Youth's defnition is 18 to 45 years old)

Pic 01: ACCA Graduates' Dream Coupe?

Pic 02: I have absolutely no blinking idea why the ladies are there and obstructing the view? Click on the HYUNDAI GENESIS commercial (I Bet you don't know how to pronounce the Brand name) : VIDEO #1 link : http://www.nfl.com/videos?videoId=09000d5d80e8100d
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When you think of luxury, thoughts of the usual German suspects of Audi, BMWs and Merc come to mind. But Hyundai "broke the rules" with the debut of the 2009 Hyundai Genesis at the Detroit Motor Show, USA. ' The Korean-made Genesis will hit the US sometime later this year with a price tag that stays below the magic US$30,000 mark. That is far yawning gap of US$20,000 compared to the German counterparts. Already it is gaining market share at the expense of German Marques and TOYOTAs & HONDAs aren't spared either! ' Don’t be quick to write off the Genesis just because it’s …

P1 PRACTICE QUESTION: EXXON MOBIL LTD

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- related to P1 (ACCA). Only for serious P1 candidates.
Action may not always bring happiness...but there is no happiness without action. (Benjamin Disraeli) Pic 01: Digging for black gold. What risks shareholders face and how you appease them?

Pic 02 : Boys will be boys, forever like to play with toys

Pic 03: Ultimate risk of Oil & Gas? (Picture of USA T-82 tanks in Kuwait)

Dear P1 IPS,
A very good question of reporting and communicating Board's risk management's actions. This is a 'virgin' topic, as it neither appeared in Pilot paper or was tested previous sittings. On this, becomes a high risk topic. ' Please attempt it as this is a practical case study involving Oil & Gas insdustry. As usual answers will be given in our next class. ' Please don't work hard but WORK HARDER!
Always worried for you lecturer, Marcus Ong

Practice Question : Information, Communication And Monitoring
A family owned company, Hasnan Berhad, recently had successfully listed their …