Thursday, January 16, 2014

The Hidden Costs - Big Mac, Facebook, Starbucks




A GREAT YEAR 2013, LOOKING FORWARD TO ANOTHER - 2014
Exciting times await in 2014. Kasturi School of Accountancy has witnessed record number of ACCA graduates in 2013. 

CONGRATULATIONS!  

We are always proud and privileged to share in your success. Thank you for working so mind boggling industriousness, steely determination, military-like discipline and eagle-like focus on Graduation goal. 

You certainly deserve the BEST that the future can offer. 


Relevant : P1, P7 and Socially Responsible Students
Examiner David Campbell's Article (extracts) on Social and Environment Costing 

"While accounting instruments already existed for reporting financial performance, there weren’t any for accounting for non-costable impacts, and it was this that gave rise to modern social and environmental accounting.



If, for example, a meat processor buys in beef and processes it for onward sale (eg as burgers), then the cost of the beef includes all of the identifiable costs incurred by the supply chain up to that point (plus profit margins, of course). So for beef, those costs will include elements of farming, land costs, logistical costs, abattoir costs, and so on. 

However, the farmer who produced the beef may have reared the cattle on land bought as a result of forest clearance. He may have paid a market price for the land upon which to graze his cattle, but the initial deforestation has implications that could not have been factored into the price he paid for the land. How, for example, could you attribute a cost to the loss of species habitat or the loss of greenhouse gas processing capacity? It is because of the difficulties in allocating the costs of these externalities that, environmental activists say, the price of that beef does not reflect the true – or full – cost, which should include the cost to the environment."

Exam Style questions: 
1) What is the Gray, Owen and Adams approach that is both acceptable to shareholders and society? Justify your answers in Starbucks context. [10]
2) Explain if firm should have an Environmental Audit. [8]

Enjoy the Videos on Hidden Costs or Externalities costs on iconic companies  by www.insurancequotes.org 










 








Best wishes on your coming results February 2014! Remember, complete the journey and not be discouraged by a few speed humps that slow down the graduation process. 

PS: I have updated the post links to ACCA's Technical articles as the accaglobal website has changed. 

Thank you for feedback. 



Sunday, September 15, 2013

Ethical Threats in Deloitte (UK)

- relevant to F8, P7 students and to some extend P1.

IFAC requires all Accounting professionals to adhere to ethical principles of objectivity, professional due care & competence, confidentiality and integrity when dealing with audit clients. Primary reason is to act as Independent Corporate Governance tool so as to protect shareholders' confidence when they read Auditors' Report. 
PIC 01: Giant Audit Firm faced Ethical Threats

When failure to comply this is a serious professional negligence that UK court will not hesitate to punish.

Accountancy giant Deloitte has been fined £14m over "persistent" failings in its dealings with collapsed car manufacturer MG Rover.
PIC 02 : UK Iconic Car that saw its business collapsed


Financial watchdog says the global accountancy firm repeatedly failed to spot conflicts of interest during consultations.

The Financial Reporting Council (FRC) ruled both Deloitte and former Deloitte partner Maghsoud Einollahi had displayed a "persistent and deliberate disregard" of accountancy ethics by failing to spot conflicts of interest during consultations in 2005.
Einollahi, now retired, was fined £250,000 and banned from practising as an accountant for three years.  

Deloitte had been advising a group of former MG Rover directors known as the Phoenix Four during a failed attempt to revive the company, having purchased it for a nominal fee of £10 five years previously. 

Both Deloitte and Einollahi had "placed their own interest ahead of that of the public" and "compromised their own sense of objectivity" during consultations, the FRC said. 
The West Midlands car maker collapsed into administration in 2005 with debts of £1.4bn and more than 6,000 job losses. 

The tribunal in July found against Deloitte on all 13 allegations, including failing to properly consider the public interest. 

It said two flawed deals in 2001 and 2002 benefited the Phoenix Four rather than MG Rover, and also earned Deloitte hefty fees.

Deloitte said it was disappointed with the outcome and disagreed with the tribunal's main findings.
It has 28 days to decide whether to appeal.

FRC executive director for conduct, Paul George, said the fines aimed to deter misconduct and "bolster public and market confidence".

A Deloitte spokeswoman said the firm took its public interest obligations seriously.
She said: "We are disappointed that the efforts we and others made did not successfully secure the long-term future of the MG Rover Group."

She added the tribunal did not criticise the quality of its work, but still found against it, and warned this could have negative implications for the advice firms and members can provide.

Final Note: Who says ACCA studies are boring? Look! Real life demonstration and application.

Source: http://news.sky.com/story/1139293/deloitte-fined-14m-over-mg-rover-collapse, 2013 

PIC 03: The once proud factory that was sold to a new Chinese investor

PIC 04: Rover's Factories were uprooted and transferred to China

PIC 05: Rover's technology sold under the new name - Chinese brand Roewe. Still an excellent car.


INVITATION TO ALL ACCA Affliates 
PIC 06: ACCA Collaboration with AGC for  Graduation Ceremony

PIC 07 : AGC's Graduation Venue in 2013

PIC 07: See you there!

ACCA Graduation Committee (AGC) in collaboration with ACCA (KL) will have a graduation convocation this coming 5th October 2013 at Kuala Lumpur Convention Cente. You may register by visiting http://www.ksacitycampus.com/ . 

We celebrate your success!

Monday, August 26, 2013

ACCA Graduation Ceremonies (5th October)

 - relevant to all ambitious ACCA candidates

Dear Hardworking ACCA candidates,

Exam results are out. Time to laugh/celebrate or to sob/regret is over. Time to move on and study really really hard. So hard that you put the Bees and Japanese men to shame.

I attended the Oxford Brookes University graduation held in Renaissance Hotel on 25th August. So pleased to see so many graduates coming from 16 countries including Singapore, Indonesia, Thailand, Hong Kong, Maritius and of course Malaysia.

Kasturi School of Accountancy wishes a HEARTIEST CONGRATULATIONS to our newly minted University Graduates from UK Based Institution! WELL DONE! SO happy to share joy with you, your family and friends on this auspicious memorable occasion.

Pic 01: Oxford Brookes graduates from over 16 countries

Pic 02: Panel of Oxford Brookes. Datuk Zaiton Mohd Hassan, President of ACCA Malaysia Advisory Committee (second from left)  and Mr Paul Inman, Vice Pro-Chancellor of Oxford Brookes University is seated second from right and



Pic 03: Professor Paul Inman towering at 6 feet 5 inches tall on the right. Next to me is my cool colleague, costing and finance expert lecturer Mr Andrew Pang. The one on left, Mr Dinning (hope got his name correct) said he did very well that morning in clapping hands non-stop. Useful man, isn't he? ANOTHER QUESTION: Who design those silly hats?



Pic 04: A Graduate representative speaker, Ms Jasmine Sin, on behalf of all graduates. A Hardworking Malaysian with UK University qualification pursuing career in Singapore.

(See Pic 04) One Graduate student said, "Never give up in trying. Never be afraid to fail for it means you are afraid to try. Graduation marks the end of learning but a beginning to new learning in career."



IT was pleasing to meet the Oxford Brookes Examiners too. Good useful tips on how to achieve Grade A in RAP.

ACCA Graduation Committee (AGC)
ALL newly qualified ACCA affliates are warmly welcome to attend the ACCA Graduation to be held on 5th October 2013 at Kuala Lumpur Convention Center. Please visit www.ksacitycampus.com for application form. 

Please note that AGC is organised in joint collaboration with ACCA and ALPs. 

Best regards,
Marcus


 


Which is your favourite Picture?

Reader's digest said that Laughter is the Best Medicine. Yes, to de-stress from a regime of jamming ideas into our over-loaded grey matter.

Have a look! Tell me which is your favourite picture by putting your comments below the article.

Enjoy!












Tuesday, August 13, 2013

How Malaysian Universities rank in Asia? (edited version)

- relevant to ALL ACCA P-Level students 
IMPRESSIVE MALAYSIAN (WORKING) STUDENTS
I am always impressed with our Malaysian students. They are so hard working, focused, disciplined and despite the work pressure they are still constantly looking to upgrade themselves in qualifications and job performance.

LAGGING MALAYSIAN UNIVERSITIES
What is the ranking of  Malaysian Universities in the Top 30? Well read the article below. Is it there? I feel disappointed that Malaysian Universities don't push themselves in new research and collaborate with commercial sector to develop new technologies, discoveries and knowledge.

Hence, I feel short changed, that I study and study hard at that in a local university only to see its ranking and recognition slipped.

UP THE ANTE (to increase the quality)
Any ACCA Candidate competing for a private sector job with other Malaysian University Degree Holders can up the ante by having a UK Qualification. The latter is better. Yes, the audit industry such as PWC, KPMG, Touche Deloitte or Ernst & Young recognise this UK based University degree to join them as professional auditors.

What about our students who already have a Malaysian University degree? I am afraid to say they have to keep up the race by completing Professional qualifications such as ACCA. Worldwide recognition for it. Go ahead and even push for Masters Postgraduate studies such as MSc. (Master of Science) to compete in the private sector. There are few exceptions who have a local Malaysian degree and still want to add another degree, hence a double degree qualification. So these rare ones also pursue a University Degree from UK.

Please find our more in our FREE PREVIEW seen below. Register or call our staff to book your free notes. Please visit http://www.ksacitycampus.com/ for contacts.

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KUALA LUMPUR: A survey carried out by the Times Higher Education, ahead of its inaugural World Academic Summit in October, shows that Asian universities are front runners in getting investments for their researches.

The Times World Academic Summit Innovation Index gives a global snapshot of how successful the world's top universities compete for research funds. 
There are nine Asian countries featured in the Index, with over 50% of its institutions ranked in the top 10 list — more than any other continent. 

Coming in at the top of the list is Korea, where the findings of the survey show that global companies are investing the equivalent of nearly US$100,000 (RM325,000) in each Korean scholar to carry out work in innovation and research on their behalf.

This is compared to less than US$10,000 per head for countries lower down the index. 
Second on the list is Singapore, with companies willing to fork out US$84,500 per researcher. 
As recent as last month, scientists at the Nanyang Technological University (Singapore) showed off their latest "invisibility cloak" by making a cat and a goldfish vanish.
The device — which is capable of making anything within its confines disappear from direct sight — could have serious real-world applications in the field of security or entertainment.
In addition to Korea and Singapore, the top 10 includes Taiwan in sixth place (US$53,900) and China in seventh (US$50,500) .
At number 10, India is ranked the fifth most commercially valuable country in Asia, with big business pouring in an average US$36,900 per researcher. Yet, all the three Indian institutions featured in Times Higher Education's annual World University Rankings fall below 226th position.
Of the 30 countries featured in the list, Malaysia did not rank. 

The traditional educational powerhouse, the US, lies in the middle of the table in 14th position, with industry contributing nearly four times less to its academic researchers (US$25,800 per person) than that of Korea. 

Similarly, the United Kingdom and Ireland — with centuries of prestigious academic heritage behind them — lag far behind the rest of the world. At fourth from bottom (26th), the UK only attracts US$13,300 per researcher from industry, while Irish academics come last (30th), receiving just US$8,300 each to carry out their work. 

This apparent lack of appetite for Western investment by big business is in contrast to the fact that some of the world's most significant developments historically come from American and British institutions. 

Without research carried out by professors Donald Bitzer and Gene Slottow at the University of Illinois (USA), for example, the plasma screen — the modern, flat screen television — would not exist.

However, it would seem that in recent years, the world's increasing enthusiasm for technological advancement and computer science has seen big business shift its attention eastward to Asia; a region now known for its strong manufacturing sector and traditional academic focus on these subject areas.
Commenting on the findings, a spokesman for the Times Higher Education World Academic Summit said that an ability to attract funding from big business could be a case of sink or swim. 

"This new index is drawn from the same data used for the Times Higher Education's annual World University Rankings and is a really pertinent exercise." 

"That South Korea and Singapore are the top two countries listed in this new table, with other Asian nations like Taiwan, China and India all making the top 10 will be a shocking wake-up call for the West. It seems that the balance of power is destined to tip further eastwards."

Sources: 
This article first appeared in The Edge Financial Daily, Aug 12, 2013.

Tuesday, August 6, 2013

Oxford Brookes University's Mentorship & New links for ACCA Students

Dear Students,

On new links, I have inserted "London News" and "UK Business News" for your reference. It is good to know the happenings in London as you are taking a UK Based exam.

Read widely related to your exam papers.

The link to Student-Accountant Magazine is also reset.

Enjoy taking in knowledge and gives you upper edge in exams.

All the best to upcoming ACCA Results.

Look out for my Oxford Brookes University Research-Mentorship programme coming soon. It should be launched on 17 August, 2013.

"Never Give Up. I say once more, "Never,Never Give Up!" " (Winston Churchill, 1939 - UK Prime Minister during World War II)

Best Regards,
Marcus



Thursday, July 25, 2013

Being Beautiful is a Disadvantage

- Relevant to all ACCA Students awaiting results


Beauty - a limitation? 




We enjoy beautiful things in life. Be it starry skies, breathtaking waterfalls, awesome nature or gorgeous ladies. Well, the feminine gender can be appealing to the eyes, but there is a downside. In USA Iowa Court has ruled that it is legal for a male employer to fire a female employee simply because she looked too attractive. That's right! You read it correct. 


Reason is the gorgeous lady can be too distracting to male colleagues. Thus causing loss of work productivity. So, is this a disadvantage to our ACCA-undergraduate ladies? 



Who is Beautiful?

This is a tricky question - How many of our students are beautiful (Compare Picture 01)? I am directing this question only to ladies, not guys! In my opinion, every lady is pleasant to the eyes, however Beauty lies in the eyes of the Beholder (in some cases Stalkers!). 


 






What should be done?

To be fair, it is not the fault of one looking pretty and attractive. But to minimise such risks, it is best that one invest in "Substance Over Form", if you allow me to borrow F7/P2 Expert lecturers. Yes, invest in brains rather than looks. If ACCA AFFLIATE Ladies is to venture into employment, their skills are highly demanded rather than skin-deep looks. Employers fighting off personal temptations may not see you as a threat but a value added staff to the firm. 


 





Solution

There you go! Graduate with ACCA, possibly University Degree or even POSTGRADUATE studies will enhance your career. Better still, you become the employer. See Yahoo's Hot but brainy CEO Melissa  (See Picture 02)


Final Word : If Handsome Men?
The question is - Is it legal for a Lady Employer to fire a Male Staff because he is too handsome? If so, poor
Bae Yong-joon, Sharukh Khan, Henry Cavill or  any wannabe Joe Actor trying to look for work in your firm. (See Picture 04-07)


Well, if it is legal to fire a beautiful lady, I can't see why it is not legal to hire a handsome man. Why, you can lock up a handsome man forever legally, of course, I think you know what I mean.






ACCA RESULTS 

Prepare yourself to accept the coming ACCA Results this 8th August, 2013. Remember, finish the journey ie to complete ACCA. Don't allow speed bumps along the way to discourage or de-rail your ambition. 

My favourite quote from Churchill (1939), "Never Give Up! I say once again, Never, Never Give Up!"  


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Court's Decision

IOWA CITY, Iowa (AP) — The Iowa Supreme Court on Friday stood by its ruling that a dentist acted legally when he fired an assistant because he found her too attractive and worried he would try to start an affair.

 

 

Coming to the same conclusion as it did in December, the all-male court found that bosses can fire employees they see as threats to their marriages, even if the subordinates have not engaged in flirtatious or other inappropriate behavior. The court said such firings do not count as illegal sex discrimination because they are motivated by feelings, not gender.

The ruling upholds a judge's decision to dismiss a discrimination lawsuit filed against Fort Dodge dentist James Knight, who fired assistant Melissa Nelson, even while acknowledging she had been a stellar employee for 10 years. Knight and his wife believed that his attraction to Nelson — two decades younger than the dentist — had become a threat to their marriage. Nelson, now 33, was replaced by another woman; Knight had an all-female staff.

The all-male court issued its revised opinion Friday in the case after taking the unusual step last month of withdrawing its December opinion, which had received nationwide publicity, debate and criticism. 

Nelson's attorney, Paige Fiedler, had asked the court in January to reconsider, calling the decision a blow for gender and racial equity in the workplace. She had warned the opinion could allow bosses to legally fire dark-skinned blacks and replace them with light-skinned blacks or small-breasted workers in favor of big-breasted workers.

The court had only granted reconsiderations five times in the last decade.


Final Word

Be self-employed like Tennis Star Sharapova would be one solution. (see picture 07)


 


Source: 

Anonymous, 2013,Melissa Nelson firing: Iowa Supreme Court upholds ruling affirming decision, http://www.wjla.com/articles/2013/07/melissa-nelson-firing-iowa-supreme-court-upholds-ruling-affirming-decision-91289.html, Visited on 25th July.

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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. ...