Wednesday, December 8, 2010

May The Force Be With You
















Pic 01: "Biggest enemy is the enemy within. Do your Best!" (Obi Wan Kenobi of Clone Wars Season 1 series) Morale: Do what you can, not what you can't

Dear Hard working F8 Candidates,

I received numeorus requests such as:
1. what topics to spot?
2. to conduct lecture again catering to long technical questions
3. to resent answers scripts(?)

I note you are anxious over the coming exams. My best advise is at this advance stage of so close to the exam, concentrate on:

i) understanding exam language say distinguish between Audit Procedures & Assertions on Non Current Assets (Substantive tests & reasons) with Audit Assertions & Procedures on Purchases System (Substantive tests + Test of Controls & reasons)

ii) practice and review the IRC question bank, CBE I, CBE II & CBE III. Classes question bank Part 1 & Part 2. With time constraints, its a challenge to understand all theories, for its not necessary you can answer them. So, work backwards, to understand the answers instead of technical theories.

iii) do "a bit of (logical) thinking" instead of wasting time memorising answers.

iv) make sure you know your ISA Manual handouts.

Its counter-productive that I should answer all technical questions on a last minute basis.

Anyone to demand from you is ONLY your absolute best.

With sincere wishes you perform your optimum in exams,

Marcus Ong - Lecturer.

Thursday, December 2, 2010

Aggregated Immateriality is Material - F8's ISA 320





















Pic 1: What, prices have gone up? How can??
Pic 2: I want to tell mommy!

Dear Hard Working Candidates,

I am pleased to have send out all the marked scripts on Dec 01, 2010. But I was shocked to be advised by Letter Man the mail is 80 sen stamp. Wah Lau!(Singaporean slang) That is is more than 180% increase from last time. And its not 60sen stamp as many told me. May be small to you, but its aggregated Immateriality, it's material! (ISA 320 of F8) There goes my lunch money for weeks.





















Pic 03: Now say this 3 times, "I am the most hard working baby in class." There, it's not so hard, is it?

Well, its for the better future for YOU! A good thing. I am happy to invest in you with my effort, expertise and time resources. I hope you invest more in yourself in time, sweat, determination, adrenaline than anyone.

Do your level BEST!
Marcus Ong - Lecturer with no lunch money

Monday, November 15, 2010

F8 : Intensive Revision Class Starts on 18th November, 2010, 8.30am to 5.00p.m

Dear F8 Hardworking Candidates,

I want to give assurance that all of you matters in terms of maximising your success in exams especially F8 which is termed one of the most challenging paper. In this connection the Intensive Revision Class will be for period 18th - 21th and 26th November, 2010. This is to accommodate our Muslim brothers and sisters service on the public holiday, 17th November. Its neigbourhood ethical principle to respect the religious practice of our bethrens just as much as you would respect a Buddhist monk's vegetarian diet.

I am well aware that it means taking additional leave. But I hope you see this as an investment to your future. Many pay a fortune to attend seminars and training but you are pursuing a worthwhile ACCA qualification.

I thank you all for your maturity and understanding of the matter and promise will give you a highly constructive exam focused revision approach for F8. To share a motivating experience, there is a candidate who tried four times on this paper but on the first time attending my class, has passed a fifth time. I admire this candidate determination of "Never Say Die" attitude. Naturally I want as many as possible to pass on FIRST attempt.

See you soon.
Marcus - Lecturer

Thursday, October 28, 2010

F8: Answer for Audit Report

Dear Hard-working ACCA F8 Candidates,

Pleased to provide the answer below for your good reference.

Work HardER,
Marcus

Answer E for Question on Audit report
ISA 260: Reports to Management requires auditors to communicate with management over the following matters namely:
• Ethical threats discovered during the audit engagement that may question the Professional due care, independence, objectivity and integrity of the audit team members and/or engagement partner.
• Stating the overall scope of audit and its limitation especially highlighting reliance on client’s internal controls and the limitations of using sampling when performing Test of Details substantive test.
• Highlight the significance of accounting policies change impact on client’s presentation of accounts.
• Requiring significant audit adjustments. This means the item misstatements have exceeded AUDIT THRESHOLD.
• Significant disagreement with management on Financial Statements and/or Disclosures.
• Expected Audit Report Modification if management continue to REFUSE to make adjustments.
• Material uncertainties affecting the entity’s ability to continue as a going concern. Auditors require SOFP to be valued as a BREAK UP Basis.
• Highlighting the material weaknesses in entity’s internal controls.
• Highlighting the failure of entity to comply with laws, local regulations or stock market requirements.

Wednesday, October 13, 2010

Would you like to 'earn' (Unethically & Immorally) RM25million (US$8.34 million)?

Relevant to P1 and P7























Pic 01: Quiz: Which two directors are charged for corruption? One is from Singapore and another is a "Datuk". (Clue: Read the article below)

Pic 02: Profitable Monkey Business?


Dear ACCA Candidates,

We are all taught to calculate Risks and Rewards Balance. What if your spend 2-10 years in a business with some hardship of long ‘idle’ hours but assured of Returns based on no investment of RM26 million? Interested? Well, Malaysia Legal and Corporate Governance would afford your such opportunity. If caught, you get to spend 'idle' time in Sg. Buloh jail.

Two directors of a Public Listed company, Multi-Code Electronics Bhd, were accused of cheating the company of that amount. The punishment is… are you ready? – minimum 2 years imprisonment, extendable to 10 years with early discharge for good behaviour. Here is the unethical part, you only pay a fine of RM1 million and that is maximum! Yes, you get to keep the balance of RM25 million. Where is the justice? It seems that Malaysia is encouraging such ‘profitable’ business.

Is it any wonder the country became more corrupt from year 2009 to 2010? According to 2009, Malaysia is MORE corrupt than South Africa, Republic of Czechoslovakia and Casino Land Macau! Its positioned at 56. In 2010, it fell to position 59! The cleanest or least corrupt lands are New Zealand, Singapore and Denmark. Not surprisingly, these are dynamic vibrant economies. Yes, corruption kills businesses, economy and social livelihood.

Fortunately, ACCA instill ethics such as Professional Due Care and Integrity among its members. We hope you ACCA candidates will change the perception when dealing with business. After all, cheating millions is no different from a common thief. What is so great about that? Can you sleep soundly knowing you have destroyed lives of others? Can you smile when others praised you for your ‘success’? The only difference between humans and animals is we have ‘conscience’. If our answers to afore questions are we can sleep and smile, then we are no longer humans!

Work hardER and achieve through honest means to provide for yourself and family. Success is based on financial and non-financial factors like integrity, honesty and industriousness.

As for P1 (ACCA), there is serious failure in Corporate Governance.

As for P7 (ACCA), tremondous opportunity to conduct Forensic Audit.

Medidate on the article below.

Marcus

___________________________________________________________________________________________

Tuesday September 28, 2010
Ex-directors charged with CBT

KUALA LUMPUR: Two former company directors have been ordered to enter their defence on four charges relating to fraud and criminal breach of trust on Dec 20.
Sessions Court judge Jagjit Singh ruled yesterday that the prosecution had proven a prima facie case against both the accused Gordon Toh Chun Toh, 59, from Singapore, and Datuk Abul Hasan Mohamed Rashid, 67.

“I am satisfied with the oral and documentary evidence adduced throughout the trial that both the accused had withdrawn the fixed deposits belonging to Multi-code Electronics Industries (M) Bhd amounting to RM18.1mil,” he said.

For the criminal breach of trust (CBT) charges, the court was of the view, that based on the evidence as a whole, both the accused had dishonestly misappropriated a sum of RM26mil.

On March 13 last year, Toh was charged with defrauding Multi-Code, a manufacturer of automotive spare parts, by using the company’s money at Kenanga Investment Bank Bhd in Menara Pelangi in Johor Baru between March 26 and 27, 2007.

Toh, a former Multi-Code managing director, faces an alternative charge of committing criminal breach of trust of RM26mil belonging to the company at Jalan Kuning, Johor Baru, between March 23 and March 28, 2007.

Former Multi-Code executive director Abul Hasan is accused of abetting Toh in the offences.

If convicted for fraud under Section 87A(b) of the Securities Industry Act 1983 (Act 280), Toh and Abul Hasan could be fined a minimum of RM1mil and jailed for a maximum of 10 years.

They also face imprisonment of a minimum two years and maximum 20 years and whipping and can be fined if found guilty under Section 409 of the Penal Code for criminal breach of trust.

Deputy Public Prosecutors Nor Rifhan Raimi Rozi and Ahmad Faiz Munawar appeared for the prosecution. Toh was represented by counsel Kevin Joshua while Abul Hasan was represented by counsel Ng Aik Guan. A total of 31 witnesses took the stand.The case is fixed for hearing from Dec 20 to Dec 22.






Pic 03: What is Hobbes (Tiger) reply to Calvin's (Boy) Comments on corruption? Read "Post A Comment" section below


Sources:

1)The Star, 2010, Ex-directors charged with CBT, http://thestar.com.my/news/story.asp?file=/2010/9/28/courts/7111785&sec=courts, September 28
2)CPI, 2009, http://www.transparency.org/policy_research/surveys_indices/cpi/2009/cpi_2009_table, Date visited: 13th October
3) Multi-Code Electronics Annual Report, 2007.

Wednesday, October 6, 2010

Uncles Tans and Aunties Maggies that Never Learn

- related to F8, P1 and P7 ACCA students

























From Left to Right:
Pic 1: Uncle, got burned?
Pic 2: Perhaps I should listen to my ACCA son studying F8 on avoiding poor Corporate Governance firm?
Pic 3: Do you board a plane after knowing the pilots are negligent? What about Executives on Board?


In 2008, I highlighted in F8 classes the working tools of corporate governance involving External Auditors. (Please visit earlier blogs below). OilCorp executive directors were adamant on their accounting treatment for valuation of asset upgrades involvingi RM20 million in which auditor Baker Tilly disputed.

As shareholders, one will be wise to heed the 'check and balance' call from External Auditors. Surprisingly, Oilcorp berhad's shareholders were 'upset' with External Auditors for causing the fracas and resulting in shares sell down. You know what- shareholders in AGM voted to replace the External Auditors!! Whose duty it is to prepare Financial Statements? Why are auditors punished for highligting to shareholders on Executive Directors' negligence pertaining to accounts preparation?

Well, its proven that the highlight Corporate Governance in at work that the Executives have too much opportunisim and self interest resulting in poor execution of strategy.

Today its dying financially. Declared as PN17 meaning insolvent. Do you know what is the surprising shareholders reaction? Punters, investors mainly uncles and aunties are 'speculating' the stock. The company is at risk of defaulting payments to creditors. How much do you think a shareholder will get if it winds up? Zilch! Zero! Thus if its now at 3sen per share, its way too expensive to buy. Sighh... guess our investors never learn. Uncle Tans and Auntie Maggies that Never Learn the risks of investing in poorly governed company.

Read the article for your F8, P1 and P7 enlightenment.

Regards


News : Oilcorp suspended from Oct 12, faces delisting

PETALING JAYA: Trading in Oilcorp Bhd shares will be suspended with effect from Oct 12 and the securities of the company risk being delisted from the local bourse on Oct 14 unless an appeal is submitted to Bursa Malaysia within the stipulated timeframe.

The move comes after the PN17 (Practice Note 17) company failed to submit its regularisation plan to the Securities Commission or Bursa within the prescribed deadline.

According to a Bursa statement, financially-troubled Oilcorp will be given up to Oct 11 to file its appeal pertaining to the delisting of its shares. Any appeal submitted after that date will not be considered.

In the event Oilcorp submits its appeal within the timeframe, the removal of the its securities from the official list of Bursa on Oct 14 shall be deferred pending the exchange’s decision.

On the other hand, should Oilcorp be delisted, it would continue to exist as an unlisted entity.

The company would still able to continue its operations and business, proceed with its corporate restructuring and its shareholders can still be rewarded by its performance.

Oilcorp was supposed to submit regularisation plans to the regulators by Sept 22, but it had early last month requested for an extension of time until March 22, 2011, claiming that it was still in the midst of discussing and negotiating with its creditors.

Oilcorp was classified as a PN17 company last September because it failed to make an overdue interest payment amounting to RM1.6mil.

In addition, the company also could not provide the exchange with a solvency declaration.

Source:
The Star, 2010, http://biz.thestar.com.my/news/story.asp?file=/2010/10/5/business/7160219&sec=business, October 12.

Blog references:
http://marcusong88.blogspot.com/2008/08/auditors-appointment-professional.html
http://marcusong88.blogspot.com/2010/02/oilcorp-corporate-governance-works.html

Tuesday, September 21, 2010

S$3,000 (RM6,983) Monthly Salary Sustainable?

relevant to hardworking ACCA candidates



























Above pictures: Singapore. An Attraction?

Dear ACCA Candidates,

Yep, that's right. When you graduate from ACCA, RM6,983.00 per month pay is what you attract working in Singapore. That is without experience! But is it sustainable? Singapore has attracted more than 500,000 talents issuing them Permanent Residence. Now the locals are worried they were outnumbered, out-competed and outside the rapid Singapore economic growth. Thus the public dissent.

What a happy problem they have! Too many talents lead to further strong growth. Please refer to P3 (Business Analysis, ACCA) on Porter's Diamond Theory. There are every indication that the world's 9th richest economy will have stronger growth than even developing economies like BRIC Countries.

There are many Malaysian talents there, but they are invited to convert PR to Singapore citizenship, many declined as this means giving up Blue IC or Malaysian citizenship. Looks like Singapore is a place to 'harvest' earning much and return to Malaysian soil to retire.

What is the appropriate strategic move?
Continue invest heavily in time and efforts to optimally prepare your ACCA exams and GRADUATE. In Kasturi College, we have strong performance on number of graduates and some pleasant surprise seen in certain papers like F5 and F8. For example many scored more than 65% and above.

Work very hard and you will gain rich rewards (monetarily) and enjoy good stuff in Singapore like Sands, Universal Studios, World’s best restaurants concentrated in Orchard Road, addictive shopping malls like Takashimaya and the new One Orchard.

Read the following ‘happy problem of Singapore’.

Work HardER,
Marcus


New division to handle foreign talent

THE number of Singapore Permanent Residence (PR) applications to be granted this year will drop, due to the tightening of immigration criteria introduced last last year, said Mr Wong Kan Seng, Deputy Prime Minister and Minister for Home Affairs, in a written Parliament answer on Thursday.

Compared to 2009, where slightly more than half of the number of applications to the government were approved, Mr Wong replied that the number of PRs to be granted in 2010 will be noticeably lesser.

A total of 132,200 applications were received in 2009 and 2010. Out of 115,900 applications processed, 51 per cent were successful.

Mr Wong's response was in reply to Nominated MP (NMP) Assoc Prof Paulin Tay Straughan's question on the number of successful PR applications in the past year.

She also asked whether the fall in proportion of PRs is due to more stringent immigration policies and the implications of this restriction in the long term.

He explained that majority of those who were granted PRs were qualified under the Professional, Technical and Skilled Workers Scheme.

Others who were granted are dependants of Singaporean citizens or are dependants of these economic PRs.

The Minister added that the government will "continue to be stringent in our requirements for PR and that residency will only be granted to "those of sustainable quality".

"If we were to close our doors to immigrants tomorrow, we can expect the old-age support ratio to fall very fast.

"In short, we would still need immigration to make up for the shortfall of babies and help
ease the pressure of an ageing population," said the Minister.

Apart from immigration, the government has made extensive efforts to tackle declining birth rates to address the challenges of an ageing population, added Mr Wong.

Source: AsiaOne, 2010, Fewer PR applications to be approved, http://news.asiaone.com/News/AsiaOne%2BNews/Singapore/Story/A1Story20100916-237564.html, Sep 16

Monday, August 16, 2010

Ethical Dilemma : Should Batman kill the Joker?


- relevant to young, curious and energetic people
- relevant to P1 (PA) and P7 (AAA)
- don’t forget : rate this article by ticking the boxes below.
- Your comments are fun and insightful


























From Left to right:
Pic 01: Hey pal, time to change to anti-dandruff shampoo
Pic 02: Joker on wickedness, "I am ahead of the curve."
Pic 03: All dressed up for F8 class. A Battle, man.



Visit "Batman Dark Knight" video

Studies can be fun. In ACCA, don’t hesitate to apply to fiction or non-fiction scenarios. Even famed comic heroes have something to teach us. Now, I am not saying this is a green card to go cinemas at the expense of your responsibility to spend hours on end poring over books, lecture notes and question bank.

Just interesting to note that P1 appeals to our inbuilt morality, the need to do the acceptable thing. Here is one example – Batman.

For years, fans of the Batman comics have puzzled over a mystery at the heart of the series: why doesn't Batman just kill his arch-nemesis, the murderous Joker?

The two have engaged in a prolonged game of cat-and-mouse. The Joker commits a crime, Batman catches him, the Joker is locked up, and then invariably escapes.

Wouldn't all this be much simpler if Batman just killed the Joker? What's stopping him?


Should Batman kill the Joker?

Batman should kill the Joker.

How many of us would agree with that? Quite a few, we'd wager. Even Heath Ledger's Joker in "The Dark Knight" marvels at Batman's refusal to kill him. After all, the Joker is a murderous psychopath, and Batman could save countless innocent lives by ending his miserable existence once and for all.

Of course, there are plenty of masked loonies ready to take the Joker's place, but none of them has ever shown the same twisted devotion to chaos and tragedy as the Clown Prince of Crime.

But if we say that Batman should kill the Joker, doesn't that imply that we should torture terrorism suspects if there's a chance of getting information that could save innocent lives? Of course, terrorism is all too present in the real world, and Batman only exists in the comics and movies. So maybe we're just too detached from the Dark Knight and the problems of Gotham City, so we can say "go ahead, kill him." But, if anything, that detachment implies that there's more at stake in the real world - so why aren't we tougher on actual terrorists than we are on the make-believe Joker?

Pop culture, such as the Batman comics and movies, provides an opportunity to think philosophically about issues and topics that parallel the real world. For instance, thinking about why Batman has never killed the Joker may help us reflect on our issues with terrorism and torture, specifically their ethics.

Three major schools of ethics provide some perspective on Batman's quandary.

Utilitarianism
Utilitarianism, based on the work of Jeremy Bentham and John Stuart Mill, would probably endorse killing the Joker, based on comparing the many lives saved against the one life lost.

Deontology
Deontology, stemming largely from the writings of Immanuel Kant, would focus on the act of murder itself, rather than the consequences. Kant's position would be more ambiguous than the utilitarian's: While it may be preferable for the Joker to be dead, it may not be morally right for any person (such as Batman) to kill him. If the Joker is to be punished, it should be through official procedures, not vigilante justice. More generally, while the Joker is evil, he is still a human being, and is thus deserving of at least a minimal level of respect and humanity.

Virtue ethics
Finally, virtue ethics, dating back to the ancient Greeks (such as Aristotle), would highlight the character of the person who kills the Joker. Does Batman want to be the kind of person that takes his enemies' lives? If he killed the Joker, would he be able to stop there, or would every two-bit thug get the same treatment?

Taking these three ethical perspectives together, we see that while there are good reasons to kill the Joker, in terms of innocent lives saved, there are also good reasons not to kill him, based on what killing him would mean about Batman and his motives, mission and character.

The same arguments apply to the debate over torture: While there are good reasons to do it, based on the positive consequences that may come from it, there are also good reasons not to, especially those based on America's national character. Many Americans who oppose torture explain their position by saying, "It's not who we are," or "We don't want to turn into them." Batman often says the same thing when asked why he hasn't killed the Joker: "I don't want to become that which I hate."

Friday, August 13, 2010

Ethical Dilemma – Spiderman Perspective

- relevant to young, curious and energetic people
- relevant to P1 (PA) and P7 (AAA)
- don’t forget : rate this article by ticking the boxes below.
- Your comments are fun and insightful












Pic 01 Ethical Dilemma: Is Peter Parker morally obliged to be a superhero? (Image courtesy Marvel)

Spiderman, a Marvel Comic hero, is serious business both as box office smashing success and an ethical dilemma. Is it true that great powers come with great responsibility? Initially Peter Parker didn’t think so. Who cares is the attitude? Ethics will have it as “love your neighbour as yourself” and “Do unto others if you want others do unto you”.



"Philosophy starts with Socrates in the streets of Athens taking his message to the people and speaking in their language - agricultural analogies and common mythology." Through the centuries, though, philosophers retreated into academia, creating a convoluted vocabulary that can appear inaccessible to the average first-year university student - those "deontological" ethics for example.

Great power, great responsibility?
Superhero-based thought experiments can help people grapple with ethical dilemmas in an unsentimental fashion.








Pic 02: Great powers come with great responsibility?


Peter Parker's Uncle Ben told him that with great power comes great responsibility, an axiom that thematically recurs through the series (Image courtesy Marvel Entertainment)

Imagine for example, that you are Peter Parker (aka Spider-Man) and you have just discovered that you have superpowers. Do you have a moral obligation to use your new-found powers to help others?

The question to explore consequentialism, an approach to morality which, as the name suggests, judges the rightness or wrongness of an action based solely on its outcomes.

A consequentialist would be likely to argue that Peter Parker has a moral responsibility to be Spider-Man because that decision would bring about the greatest good.

But Peter Parker was also a talented scientist, so a non-consequentialist could argue that fulfilling his scientific vocation could be an equally valid choice for him. Perhaps being Spider-Man is above and beyond the call of duty - the answer is murky.















Pic 03: Consequentialists or Non-consequentialist approach?

The conversation does not end with superheroes, of course. Mr Robichaud of Harvard University encourages students to take the framework they have learned and apply it to decisions in their own personal and professional lives.

But he says it is a neutral way to start talking about ethical issues that people often find provocative or confronting.
"Ethics is one of those hard things to teach because for a lot of people the answers are very personal," Mr Robichaud told the BBC. "If you make it about artificial examples at first, then it allows people to think a little bit more safely and clearly about ethical issues."

Questions:
1) Is Peter Parker obliged to be a superhero?
2) Can he use the ill-gotten gains from villains to support his heroic work? Or he must work part time in pizza delivery?

Next article, I shall explore another superhero. Serious movie that sends our head spinning.

Source:
Katie Connolly, BBC News, Teaching philosophy with Spider-Man2010 12 August

Tuesday, August 3, 2010

British Petroleum : UK Governance at Play

- related to "7-11" P1 ACCA students
- please don't forget rate the article in the tick boxes below















Pic 01: Outgoing CEO (Forefront) with Incoming CEO (Background)

Watch the video on "Media Pressure" on BP.

United Kingdom’s strong governance at play with such effectiveness that USA President Obama has turned from anger to emotional appeal that British Petroleum giant oil company should stay and demonstrate repentance by cleaning up Mexico Gulf and contributing to American economy. Note the articles below on:

1. Governance tool: Transparency principle in that BP reveals action to shut the spill soonest within a week
2. Chairman’s tool: Through Nomination committee replaced the ineffective CEO
3. Chairman’s tool: As spokesperson for BP, met and appease USA President
4. Remuneration Committee: Set the severance pay for outgoing CEO
5. Media pressure a form of governance: Attention on the new CEO’s actions. Praises and encouragement for him
6. iNEDS tool: Have a succession plan in place. Deputy CEO considered the best choice for No.1 position.

RESULT: Share prices rebound by 37% since the departure of outgoing CEO. A neat piece of governance work safeguarding BP Shareholders’ interests!

Enjoy the following articles:
Article 01:
President Obama spoke yesterday with the chairman of the board of BP about their change in leadership, but BP CEO Tony Hayward's departure is "immaterial" to the company's obligations to the Gulf Coast in the wake of the oil spill, a White House spokesperson said today.
"The key is that BP can't leave and should not leave the Gulf," White House Press Secretary Robert Gibbs said at a briefing. "I think that's the viewpoint of everyone that's involved here, that they have obligations and responsibilities as the responsible party in this instance that have to be met, regardless of who the CEO is or who the chair of the company is."
BP announced Tuesday that embattled CEO Tony Hayward would step down from his position on October 1, and his American deputy, Bob Dudley, would take his job.
When asked by the British press whether his ouster was fair, Hayward replied, "Life's not fair," and said he was forced to leave because he was demonized by the American media. He also said he may be "too busy" to attend American hearings on the oil spill.
"What's not fair is what's happened on the Gulf," Gibbs responded today to the remarks. "What's not fair is that the actions of some have caused the greatest environmental disaster that our country's ever seen."
He added, " don't think that a lot of people in any country are feeling overly sorry for the former CEO of BP."

ARTICLE 02
British oil giant BP announced Tuesday morning that embattled CEO Tony Hayward would step down from his position on October 1, and his American deputy, Bob Dudley, would assume to top job.

In a statement accompanying its earnings update on Tuesday, BP said the decision was made by "mutual agreement."

The company said Dudley would be based in London when he takes up his appointment and will hand over his present duties in the United States to Lamar McKay, the chairman and president of BP America.

The newly named CEO said Tuesday his top priority would be sealing the company's blown oil well for good, and cleaning and restoring the Gulf of Mexico.

Hayward has been slammed by U.S. officials - including President Obama - for his handling of the Gulf oil spill.

Hayward is the bone being thrown to the angry dog of public opinion, reports CBS News correspondent Mark Phillips.

And as sacrificial lambs go, Hayward is an expensive one. Phillips reports the golden handshake from BP will involve a year's salary of $1.6 million, a pension worth roughly another million dollars every year, and BP shares that could be worth many more millions -- if the company's stock price recovers.

BP said Tuesday the company was allocating $32.2 billion to cover the costs of cleaning up after the spill and compensating the thousands of Gulf Coast residents put out of work by the waves of crude oil. The company said it would sell $30 billion worth of assets over 18 months to help foot the bill.

The cost figures were released along with BP's quarterly earnings report -- a record loss of $17 billion for the second quarter.

SOURCES:
Stephanie Condon, 2010, Obama Talks to BP Chairman About Hayward's Ouster,
http://www.cbsnews.com/8300-503544_162-503544.html?keyword=Tony+Hayward&tag=contentMain;contentBody, July 27

CBS NEWS BUSINESS, 2010,BP Confirms Tony Hayward Out, Bob Dudley In,http://www.cbsnews.com/stories/2010/07/27/business/main6716254.shtml?tag=contentMain;contentBody, July 27

Friday, July 23, 2010

Conglomerates : Governance and Strategic Issues

- related to P1 and P3 ACCA Candidates

- please rate this article according to the categories below :
INTERESTING, MOTIVATING, NEUTRAL




Pic 01: Humble machine that destroyed Xerox?

I have the bitter-sweet experience having John Zinski, CEO of of Securities Industry Development Corp - the training and development arm of the Securities Commission, as my facilitator when I pursued my Master of Science postgraduate studies in Nottingham (U.K) University. We didn’t quite meet eye to eye on my research analysis on “Why Xerox failed?” My supposition was that its Board was short termistic in relations to EPS (Earnings Per Share) zealously cutting costs and outsourcing its primary activities.

Its strategic collaboration with Fuji (Japan) Limited saw the gradual loss of its core competencies pertaining to knowledge on developing low end photocopiers. Xerox didn’t mind that Fuji Limited was sending over 1,000 engineers to swarm all over its factories including the Research and Development division. These keen engineers would bring back valuable knowledge for analysis and further development on their then shallow grasp of the photocopiers’ technology. In the end Fuji Limited gained significant market share in Asia under the brand name Fuji-Xerox. In time Ricoh machines penetrated USA market and hurt Xerox market share.

Fuji offered a defensive strategy that Xerox could sell its machines in USA, confident it will succeed since Fuji’s technology was superior to Ricoh in Japan. However this collaboration turned in favour to Fuji with it now insisting on intellectual fees. As a result, Xerox lost out on competitiveness and profitability as it becomes a mere brand on the outside but possess no real competencies on inside.

John enthusiastically challenged my research findings arguing that Xerox was hugely successful and merely relegate low end photocopiers market segment to a non-threatening partner. But I defended that the numbers don’t lie in that Xerox revenues fell double digits and was a brink of corporate insolvency. Insisting he was ‘right’ being a senior manager of the company for over 10 years, he brushed aside my arguments. Well, I could only say both of us were right as we looked at the same case study from ‘different eye’.

Still this was an enriching experience of research and intellectual exercise.

Now his article on the “Good and Bad of Conglomerates” certainly a very good one for P1 and P3 candidates.





































Pictures above: Which of the above businesses would you think an Asian Firm and Western be keen? Would it be investing big budget movies like the US$500 million Matrix trilogy, US$200 million Titanic or dull business like properties development in Kuala Lumpur?

What is Conglomerate?
A simple definition is a firm that has large number of businesses, which often are unrelated to each other. Sime Darby Berhad, GE (USA) Limited and Cheung Kong (Hong Kong) Limited are prime examples.

P1 Perspective
Conglomerate places overwhelming pressure on Board of Directors to supervise, devise and execute effective strategies. Unfortunately one cannot find supervisory and advisory committees comprising of independent Non Executive Directors to be an expert in every business fields. A “Jack of all trades and Master of none”scenario.

Board that gives green lightand offer no real meaningful advise to Executive Directors on strategies without real understanding of the business certainly exposes firm to higher risks.

Institutional shareholders would have conflicting view on conglomerate’s performance witnessing certain ‘star’ industries rising in growth and contribution while uncertain of the lackluster performance on the rest of conglomerate. They thus decidedly value the shares at a discount viewing it as an uncertainty on its potential.

Insider dominated firms i.e. firms with families as major shareholding controls, opportunistically seek to expand to other businesses believing they are spreading the risks in a few basket. Disregarding share price performance as it means nothing more than a paper loss as they have no intention to sell out their shares, they select strategies that fit their risk appetite. Generally, Asian conglomerates prefer the stable returns form low to moderate risk businesses. Hence it comes as no surprise to witness so many listed companies are involved in mature industries like construction, infrastructure, manufacturing and automobiles while shying away from infant volatile industries like R&D for new pharmaceutical drugs, fashion design or mega bucks movie production.

Executive directors in subsidiaries have agency problem of being territorial and empire building resulting in mediocre contributions to the detriment of shareholders. The Board would fail in giving sufficient supervision on individual businesses in a conglomerate.

P3 Perspective
Porter argued that “Diversification destroys shareholders’ value” (Remember to use this phrase in exams). Empirical research gave overwhelming proof that post- Mergers and Acquisition actually delivers less market capitalization values compared to pre –acquisition. Put it simply, a 2+2=3 scenario.

He argued that Board lacks the parenting skills to guide and add value to individual business units. Having spread out thinly and stretching management talents, business units are either starved of cash or misguided in strategies.

Malaysian Stock Marker regulator views on Conglomerate?
Well, John of Securities Commission, has done quite a good job on why conglomerates fare badly in open economies while thrive somewhat in protectionists (governments that protect local companies from foreign competitors using licensing, import duties or quota) economies.

I post the article below for your reading pleasure and see if you could decipher and differentiate both P1 and P3 contents.

Happy reading.

ARTICLE: Are conglomerates good or bad?
IN most developed capital markets, conglomerates trade at a discount. Yet this does not appear to be the case in many Asian markets, despite the fact that conglomerates are more difficult for boards to govern than other forms of organisations.

Although the reasons for the discount exist in Asian markets, perhaps the fact that some conglomerates may attract better talent than single line-of-business companies or are better connected is enough to compensate for the inherent governance disadvantages conglomerates face. What this does is to put even more pressure on the boards of conglomerates to really understand what is going on under their watch, making an already challenging job even more difficult.

The case against conglomerates
In developed capital markets where there are deep pools of capital and many highly liquid stocks, conglomerates typically trade at a discount to the market. There are three reasons for this.

The first reason is that investors believe that they can diversify their risks better than the managers in the conglomerate can. They literally have the entire market to choose from and they are not limited to equities, but can choose to invest in fixed income, derivatives, property and commodities. As a result the argument that a conglomerate represents a better spread of risk than a single product business, whilst correct, does not appeal, because investors can build their own portfolios to match their risk appetites exactly, whereas managers can only guess what their shareholders want.

The second and perhaps more important reason is that conglomerates risk losing focus. They risk being moderately good at most things and not outstanding at any one thing. In a rapidly changing and hypercompetitive world this is a critical weakness. Focussed competitors have the advantage in competitive battles for markets. They have no alternative businesses to depend on if the going gets rough. They will therefore fight harder to maintain share; invest more in relevant R&D to stay competitive. Their boards will also know exactly what is going on and will not be able to be bamboozled so easily, because they only have one industry to understand instead of many.

The third and perhaps most important reason is the difficulty to manage talent and develop appropriate succession planning in conglomerates. Whilst it is true that conglomerates offer a rich diversity of experience, the problem is to know which of the many experiences are the ones that matter most in the board and in the CEO at any time when the strategic priorities or direction are forced to change as a result of changes in technology, competition or economic circumstances.

Thus even a vertically integrated conglomerate like Unilever decided a long time ago that skills in oil plantations and mills (the source of key raw materials), or in shipping and distribution (to get raw materials to factories and finished products from factories to retail stores), or in running the stores themselves to capture the last margin in the value chain did not help their core skills of creating fast moving branded consumer goods for everyday use. Even though they were leaders in their field, they sold their plantations and oil mills, their shipping line and their logistics business. They sold their supermarkets and their specialty chemicals businesses as well as their upmarket cosmetics and invested the money and effort in building brands for everyday use.

Even so there are commentators who argue that they are still too diversified because they are in foods, detergents and household cleaners as well as health and beauty products, competing with more focused companies like Procter and Gamble, Nestle and Danone which can outcompete in their chosen narrower fields.
The case for conglomerates

So why are there so many conglomerates in Asia?
Investors may still see them as the BCG matrix theory operating in practice, where different divisions operate in different markets with different risk profiles, different business cycles and different competitors, throwing off or consuming cash to the greater good of the organisation as a whole. Unlike in developed markets it may make sense to argue that companies can diversify risk better than individual investors because the capital markets do not offer the same range of asset classes for investors to hold on their own as part of a diversified portfolio.

In addition because the local markets are smaller, there are fewer focused first rate competitors fighting for share. This means that hoarding talent and spreading it across lines of business in markets like Hong Kong, Indonesia, Singapore or Malaysia where the talent pool of skilled managers and directors is small may still make sense. Spread good managers with proven track records across the different businesses and the company will do well, capturing the opportunities for economic rent in each line of business because the competition is seriously short of deployable talent. In semi-free or protected markets where level-playing fields do not exist, this argument has even more force. It has created dominant local players in Hong Kong, Singapore, Indonesia and the Philippines and spectacular world-beating chaebols from Korea, following in the footsteps of Japan’s keiretsu. Thus, in markets where the leading players are all equally unfocused, there is little competitive disadvantage in choosing the conglomerate model.

Finally in markets where technical “know-who” is more important than technical know-how, it may not matter so much from a talent management and succession-planning perspective who is promoted as long as they have a basic minimum level of competence and a great network of connections to leverage.

Going abroad changes the conglomerate equation
What boards of successful local conglomerates must think about is what happens when the company ventures abroad into bigger markets where there is either a level competitive playing field, or if it is not level, it is tilted in ways the local company no longer understands.

If the field is level, and the market large enough to warrant focused competition, the focused competitors will do better in the industries of their choice. If the field is tilted, but senior managers no longer have the right technical “know-who” to win business on attractive terms, then again the conglomerate model brings no benefit and may create serious risks because the board only understands too late what has gone wrong because errors of judgment or strategy can go unnoticed or be hidden by senior managers in the forlorn hope that things will get better, given time. If the field is tilted and the market is large enough to warrant focused competition, as might be the case in Brazil, China, the Gulf or India, then a model that works well for the smaller Asean markets might cause grief when it is exported without sufficient regard being given to the different conditions in such markets.

SOURCE : John Zinski, 2010, The Star, Are conglomerates good or bad?, July 23

Wednesday, July 14, 2010

Where did the RM40 Billion Public (Taxpayers) Funds Go?

- relevant to ACCA F8, P1 students and concerned Malaysians



Pic 01: Corporate Governance Pillar

Birth of United Kingdom Corporate Governance
Sir Adrian Cadbury was concerned with the unfettered powers vested in Executive Directors. Indirectly referring to the Maxwell Scandal where the CEO was also Chairman and dominates the Board of Directors. The resulting effect was siphoning employees hard earned pension fund for his own benefit. A case of Agency Problem with insufficient safeguards. Hence the Cadbury Report requires the principles based compliance that Board is to ensure the independent monitoring of CEO by Chairman.

However, many companies pay lip-service in failing to appreciate the "spirit" of the Code. These Malaysian Companies and by extension the Malaysian governmental administration has many conflicts of interests.

Case Study
For instance, TA (M) Securities Berhad former CEO Datuk Tiah was convicted of corruption and imprisoned. He was barred from holding any executorial director position for 10 years. During that period, his wife Datin Tiah held the CEO position. 13 years later, Datuk Tiah is the Chairman. Would there be an "independent" evaluation of CEO by a spouse, ex-convict Chairman? What is the integrity of Chairman notwithstanding the fact that he has passed the 10 year bar period?

Malaysian Administrative Governance
If you think this local company has an 'iffy' governance issue. Well magnify that 'billions' of times, yes to "billions of lost Ringgit"! Independence is the key pillar to effective governance.However if politicians or senators have indirect control of police, Ministries on Home securities and media licensing, laws to muzzle whistle blowers media, almost dictatorial control of Malaysian Anti Corruption Corporation (MACC), then this gives rise to weak governance.

Poor governance arising from lack of transparency and accountability:
Government should be gravely concerned and explain the scandals and the leaks involving billions of ringgit which have underlined decades of 2/3 majority rule at Parliment.

The missing billions, said Opposition PKR supreme council member Tan Kee Kwong, were public funds and must be explained even before Najib can begin winning the rakyat’s confidence.

Tan said this while debating Government's speech was always “prioritising the rakyat and helping the poor and needy”. (there should be greater effort in communicating with the public)









Pic 02: Does the country have the expertise to build own Military Navy Ships? Does the costs justify? A case of Opportunism under transaction cost theory!

Pic 03: Is it that costly, a tank at RM30million? Note that a passenger plane (yes, the one that flies) costs only RM45 million.




Tan drew attention to a litany of scandals which has ripped apart the Malaysian economy, leading to its current debt-ridden state.

He recalled how in 1998 during the economic crisis, finance minister Anwar Ibrahim was sacked and replaced by Daim Zainuddin.

According to him, Daim had at the time awarded a RM5.2 billion contract to his crony company PSC Shipyard Bhd to build OPV (offshore patrol vessels).

The Public Accounts Commission (PAC) later discovered that the finance ministry had issued a cheque for RM1 billion before the OPVs were completed.

“During the PAC meeting, we were shocked to hear that RM3.8 billion had been paid out by the ministry although not a single OPV had been sent to the navy (Royal Malaysian Navy).

“Then we questioned the defence ministry secretary-general about the missing RM600 million, and he said it was used to pay off the debts of another one of his (Daim’s) projects.

“I understand the OPV contract has since been given to another company to complete the job and it has cost the BN government RM7.5 billion in total, an additional RM2.3 billion.

“Is this what Najib meant by 'people first'?” asked Tan, the former deputy minister of land and cooperative development.

Major scandals over the years

Tan also questioned the setting up of the Terengganu Investment Agency (TIA), which was involved in administrating the flow of “wang ehsan” funds from Petronas to the Terengganu.

The TIA received profits of between RM600 million and RM700 million a year in commissions. “I was given to understand that for a large amount like this, a 3% commission is usually paid.

"In this case, the commission paid was 12.5% and the commission received on the balance -- RM3.5 billion -- is even higher.

“Wang Ehsan should be used to to help the poor in Terengganu, not for other activities and should in fact be used to secure bonds," said Tan.

“Why was there a need for a 12.5% commission payout? Is the investment in Kazakhstan safe?" he asked.

He also recalled the major scandals involving the BN government, including the RM4 billion Hong Kong BMF scandal, the RM15 billion Perwaja Steel fiasco and the RM10 billion PKFZ (Port Klang Free Zone) affair.

Also, the time when MAS shares were bought at RM8 apiece when in fact their market price was only RM3.5 and the direct awards of contracts for construction of schools and computers worth RM10 billion, and the RM8 billion purchase of military tanks.

The price of the tanks was RM500 million but what the government paid out was RM30 million for each unit.

---------------------end of article-----------------

Caution: The article above is biased coming from opposition political party that question the integrity of present government. As readers, we should take a pinch of salt of its allegations as in Court its all about evidence. What should irk Passive stakeholders like voters and community are why there aren't sufficient transparency and accountability in managing public funds?

But note that Opposition party is indirectly complying with Cadbury's Report as a role of "chairman" evaluating the role of "CEO present government". Thus complying with the spirit of the governnance code rather than mere Box-ticking approach.

"Biased" Source from an opposition political party: http://www.freemalaysiatoday.com/fmt-english/politics/barisan-nasional/7904-explain-lost-billions-before-touting-people-first-slogan

Other links:
TA Enterprise Berhad, 2010, Official website http://www.ta.com.my/tae/
Securities COmmission, 2002, SC acts tough on errant PN4 directors; offenders will be dealt with, www.sc.com.my/eng/html/resources/press/pr_20021212.html, 12 December

Saturday, July 3, 2010

EXPRESS LEARNING COURSE - KSA (PJ & KL)

- relevant to ACCA Students

















Pic 01 (left) : Tuition Provider offering added value ELC
Pic 02 (Right) : Express class like a modern, yet effective TGV train. Come aboard and enjoy our classes.

New semester has begun. Confident that all you ACCA candidates have good holiday, recuperative breaks last 2 weeks.

So happy to share with you aspiring and ambitious students that Kasturi College International has introduced EXPRESS LEARNING COURSE in August 2010 designed to benefit:

1. July 2010 intake students to revise the topics covered with sharpening exam techniques. This is a pre-revision sessions to ensure topics covered are re-visited by our able-minded lecturers

2. August 2010 latecomers who want to only start classes at this stage.

3. August 2010 intake students who may need to re-attempt the papers so as to close the loop with the July 2010 batch.

Please note that each lecturer have their own unique approach to manage the EXPRESS LEARNING COURSE. All of this is added to enhance you ACCA Candidates score and success in the upcoming exams.

Please visit http://www.ksacitycampus.com/acca_timetable.htm for the time table.

Thursday, May 13, 2010

50 (ONLY) SCHOLARSHIP AWARDS ACCA/CAT

- relevant to aspiring hard working students
- Please rate this article in the tick boxes as "MOTIVATING" , "INTERESTING" OR "NEUTRAL" below



Picture 1: Scholarship Cheque payable DIRECTLY to student




















Picture 2: KASTURI's LECTURERS ACHIEVEMENTS. We produce top students, are you the next top student?









I remember once, when I was a student, one classmate sarcastically said that I worked (in study) so hard that I put both the Japanese salarymen and bees to shame. I took that positively as it means I am on right track to achieve ACCA SUCCESS. I was studying for the A-Levels course at that time. I wanted to be No.1 as the college offers CASH REWARDS which almost covers the tuition fees. Sadly, I got No.3 position out of 280 students. That wasn't good enough.

A deja vu, I thought maybe there are still students like this, so Kasturi College offers 50 scholarship awards to such students.



NO FREE LUNCH, not even lottery winners







Picture 3: Its not how much you win but...















There are no shortcuts. You may say, what about those who strike lottery and win record millions. Interestingly, I read a research paper that states that a sample of 1,000 lottery winners were analysed over a 10 year period.





Picture 4: ...how you manage wealth. Many failed and are back to Square One.














The research discovers that 95% ended up in losing all their fund winnings and were either the same financially or worse off than 'before' the winnings. Only 3% managed to hold on to their winnings and the remaning 2% managed to grow their wealth. The conclusion is: Not the amount one earns/wins but how the funds were intelligently managed.

The same echo by former FED Chairman (USA) Alan Greenspan who said Americans lacked accounting knowledge and ability to manage funds. The context of his assertion is on average Americans who overspend and contributes to the Billions of trade deficit USA has with the world.

One needs Financial Accounting knowledge to not only thrive but preserve wealth. Thus ACCA graduation is crucial for financial management.

HOW IT APPLIES TO YOU?
There is no free lunch. If you want to have better career future, then it demands your energy, sacrifice and full commitment. It requires lots and lots of your time, 8 hours of personal study a day at the very least.

WHY WORK SO HARD?
At Kasturi College (PJ Branch) we have a proven team of lecturers who have assisted students to win TOP PRIZES such as the ones you seen on the Pictures above. Even tough paper like F8 (Audit and Assurance), the student won top Malaysian prize. Now, I am not asking you to win top prize, but merely demand that you need to pass, pass it well. Get more than 60% so as to form strong foundation in ACCA Professional level or earn good degree classification in Oxford Brookes University-ACCA.

REWARDS ARE YOURS - CHEQUE IN YOUR NAME
AS PER Pictures above, if you are hardworking (very, very hardworking that is), KASTURI PJ COLLEGE offers you SCHOLARSHIP worth more than RM2,000.00. We recognise your hardwork, thus the Scholarship is issued in a Cheque payable to YOU! Use the fund and share your joys with family and love ones.

CONCLUSION
The world of commerce rewards the industrious and qualified. Are you keen? Join us at Kasturi College (PJ) Branch, with our competitively priced fees, you can achieve ACCA SUCCESS.

Wednesday, May 5, 2010

100% PASS RATE

- relevant to ACCA under-graduates without a University Degree

I am pleased to share the joys with November, 2009 batch of Oxford Brookes Universtity research students who graduated. All have achieve and earned the degree - a 100% pass rate! What a joy and priviledge to work with such industrious students. Now they can lift their heads high and boast that they are now Square Head people since they qualified to wear the Square Hat.

At Kasturi College, its a no-frills college where we take you there - Graduate. For comparisons, Japan Airlines offer a flight in First Class destination route from Kuala Lumpur to Beijing the price which is "10x" the price of what Air Asia offers! The well-to-do clients will opt for the former while I believe the mass wants the latter so long as :
- Air Asia has strictly adhered to its safety policies
- Air Asia has track record which it did in ferrying over 4 million passengers a year.

Similarly, at Kasturi College, we 'fly' you to your destination with our proven track record and highly capable lecturers.

If you compare with local and nearby competitors in Bandar Sunway, Kasturi College at Sunway Mentari (please visit LOCATIONS) , the price you pay for a similar ACCA course is more than 100% the price (it reads as one hundred percent). Scholarship students, namely those who score 65% in any subject or above are given a further Scholarship award of 50% to 75% off the fees.

Watch out for more information of how Kasturi College is the best, some say in China while others say the World. (hee hee)

Congratulations! To the newly minted Oxford Brookes-ACCA Degree Holders!

Mandarin encouragement, "Jia You".

Cheers

Thursday, April 29, 2010

Beijing Men : Handsome and Talented

- relevant to all ACCA undergraduates
- Please rate this article in the tick boxes below








Pic 01: Beijing Finance District
Pic 02: Great Wall : Symbol of Chinese Culture that anything is possible!
Pic 03: Malaysia's very own brand in the most expensive district in Beijing


Unbelievable! My response. Beijing, the capital and political power hub of China is both rich with history and modern amenities. Its roads are straight, 5 lanes on one side, adorned with most facinating modern architectures. Passing the most expensive street, one can witness amazing mammoth buildings. Was told by locals that the rich and famous will shop in the most prestigious ginza - Parksons! Yes, locally listed albeit undervalued stocks in Malaysia.



Pic 04: Kasturi College's lecturers are proud to be associated with these hardworking students of China.

I have the priviledge to witness the award ceremony for Top Prize winners in China. Kasturi team of lecturers have done well. No, done superbly well! One student scored 100% for ACCA F4!That is WORLD PRIZE! Admittedly that is the first time I hear for a theory paper to have perfect score. In addition there were 3 top prize winners at CAT level.

Also witness newly minted Affliates. A random chat with few of them really offers insight. They are really industrious, dogged and relentless pursuit of excellence. Not only in studies but in career.



Pic 05: Handsome and dangerously armed



Refer to Picture 05 : the gentleman seated on the right doesn't look more than 30 years of age. He gave me his card which reads his position as Vice President of ICBC Bank, Beijing! How is that possible? Believe it! China is aplenty with opportunities. Once you gain international qualification which in this case is unmistakably ACCA Affliate status, you climb the corporate ladder. This tall gentleman, I reckon, didn't climb but took the lift to the top career floor!

The gentleman next to him, is another tall but gentle speaking guy. He is a senior manager for one of the local top largest merchant bank. Yes, another newly minted ACCA Affliate.

What is even more shocking is these men enquired about Chartered Financial Analyst (CFA of America), in Kasturi College. I obligingly promise to e-mail CFA Course Director details to them. There is no stopping these Chinese professionals!

Now, I don't know about you ACCA undergraduates, these guys could either be a threat or complement to you. If you graduate, you too can join their senior ranks. One does well to ask:

1. Are my college friends are really so important that they take most of my time, at the expense of studying for ACCA exams?
2. Are cafes, entertainment hotspots really that satisfying compared to a graduate with successful career? I was told that a qualified accountant earns a mean of RM7,000 a month! Now that is serious money.
3. For part time students to ask, "Is my current job really so precious and worthwhile devoting to, at the expense of my concentration on exams preparation?" Don't get me wrong, its good to achieve good career progress now but with ACCA , it will be a rocket booster.
4. Can part time students devote at least 3 hours a day for personal study for ACCA? For full time students, that should stretch to 8 hours a day in view that they are likely to take 3-4 subjects per sitting.


China : Threat or Opportunity?
China is a threat to the unprepared. To illustrate, a mid size city Tianjin, near to Beijing, has attracted more FDI that what Malaysia as a 'country'! Mind you, the investment Malaysia gets are oil & gas related or agriculture fields whereas Tianjin is on buiding the 5th largest and busiest port in the world and high value added manufacturing.

Dr Mahathir, former Prime Minister, said that China is not a threat to Malaysia. This country can't even compete with Thailand!

A serious threat to workforce, you! If you don't equip yourself with world class education, ACCA, you will be left behind together with Malaysia!

But if you are willing to work for it like the men above, China and ASEAN becomes a melting pot of opportunity. Destiny is in your hands! Are you willing to make sacrifices now for a better tomorrow? Or is the mundane time with friends, window shopping and fleeting movie going more interesting?

Convert threats to renewed energy
Join these professionals! Like them who struggle, work endless hours in studying, tirelessly, so should you. Do it for your (future) spouse, (future) kids, parents and for YOURSELF.

Reading the book by Jim Collins titled From Good to Great, it emphasises successful firms are dominated by highly disciplined managers who have passion for their occupation.

By application, have passion to build your future! Its yours. I must say all lecturers in Kasturi College are highly experienced and skilled in delivery. Dare I say, have the competence to guide you to success. But its with the condition that you will work hard together with them.

Graduate, then what?
Well, the world is your oyster, Join these handsome and talented Beijing ACCA Affliates to build a better and brighter future. Join the over 1000 affliates that are churned out in Malaysia each year.

Tuesday, April 20, 2010

AUDIT REPORT 2008 : CB Industrial Product Holding Berhad

- RELEVANT TO F8 (AA), identifying the components of an AUdit Report.

Independent Auditors’ Report
to the Members of CB Industrial Product Holding Berhad

Report on the Financial Statements
We have audited the financial statements of CB Industrial Product Holding Berhad, which comprise the balance sheets as at 31
December 2008, and the income statements, statements of changes in equity and cash flow statements for the financial year
then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 35 to 80.

Directors’ Responsibility for the Financial Statements
The directors of the Company are responsible for the preparation and fair presentation of these financial statements in
accordance with Financial Reporting Standards and the Companies Act 1965 in Malaysia. This responsibility includes designing,
implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that
are free from material misstatement, whether due to fraud or error, selecting and applying appropriate policies, and making
accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from
material misstatement.

(SCOPE PARAGRAPH)
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on our judgment, including the assessment of risks of material misstatement of
the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant
to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s
internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness
of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion
In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards and
the Companies Act 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company
as of 31 December 2008 and of their financial performance and cash flows for the financial year then ended.

Report on Other Legal and Regulatory Requirements
In accordance with the requirements of the Companies Act 1965 in Malaysia, we also report the following:-
(a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company
and its subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of the Act;

(b) We have considered the financial statements and the auditors’ reports of the subsidiaries of which we have not
acted as auditors, which is indicated in Note 6 to the financial statements;

(c) We are satisfied that the financial statements of the subsidiaries that have been consolidated with the Company’s financial statements are in form and content appropriate and proper for the purposes of the preparation of the financial statements of the Group and we have received satisfactory information and explanations required by us for those purposes; and

(d) The audit reports on the financial statements of the subsidiaries did not contain any qualification or any adverse
comment made under Section 174(3) of the Act.

Other Matters
This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies
Act 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this
report.

HORWATH LEE KOK WAI
Firm No : AF 1018 Approval No : 2760/06/10 (J)
Chartered Accountants Partner
Kuala Lumpur
27 April 2009

ADDRESS
Horwath
Chartered Accountants
Level 16 Tower C
Megan Avenue II
12 Jalan Yap Kwan Seng
50450 Kuala Lumpur
Telephone No : 03-2166 0000
Facsimile No : 03-2166 1000

URGENT: SBL Exam Guidance for Dec 2018 Exams

EVERY SUCCESS IN YOUR DECEMBER 2018 EXAMS Change is the only constant. Kasturi Core lecturing team has now moved to 2 new locations. ...