To Fiddle or Not to Fiddle.ppt

8/13/2019 To Fiddle or Not to Fiddle.ppt

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To Fiddle or Not to FiddleCASE STUDY 2


2/12

Synopsis

A financial controller in a SinoMalaysian joint venture was asked by a

director representing the interest of theChinese government , who was also agovernment official supervising foreign JVcompanies, to change the P&L position

from loss to profit, so that he could paint arosy picture in his report of JVperformance under his charge.


3/12

Synopsis

This case introduces the scenario in whichan accountant may face when he works in

a foreign country in a joint venture.

The dilemma can also faced by an

accountant working in a family ownedcompany in Malaysian, where decision ismade by the ever powerful founder-owner.


4/12

Synopsis

The case also serves to illustrate the importance of corporategovernance in the business world.

Corporate governance encompasses achieving corporatemission or objective, law compliance, upholding code of bestpractices and adherence to business and personal ethics.

The corporate governance could be the foundation of abetter business world where fraud, malpractice, corruptioncould be minimised.


5/12

Objectives and Learning

Outcomes

Relate the accounting training to date to explainthe concept of true and fair view of financial

statements. (Skill & attitude)

Understand and appreciates that an accountantmust comply with the Malaysian accountingstandards (now Malaysian financial reporting

standards). Also as an overseas subsidiary of aMalaysian company, there is the need to

consolidate the YBLCs account into the parent(group) accounts. (Skill & attitude)


6/12

Appraise the importance of corporate governance in

the business world, and be aware of the elements incorporate governance. (Skill & attitude)

Defend the principle of separation of ownership andmanagement in the administration of the

company, and relate this to the directors fiduciaryduty and duty of care owed to the company. (Skill &

attitude)

Justify that corporate governance as a cornerstonefor prevention of fraud, malpractice and corruption.

(Attitude)


7/12

Develop strategies to inculcate the concepts & importance

of corporate governance among executives andprofessional in business. (Skill & attitude)

Recognise the code of ethics and other trade bestpractices they have pledged to up hold. (Attitude)

Be aware of the management problems that could befacing, and the need to be sensitive to issues, in crosscultural management in an international joint venture

business. (Skill)

Apply the principles of international taxation when working

in different countries overseas. (Skill)


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Case Leading Strategy

Students should familiarise themselves with:

Business law (basic principles of company law. law ofcontract, employment law etc)

Financial reporting standards for Malaysia

Principles of international taxation

Tax avoidance vs. tax evasion

Code of best practice for corporations

Corporate governance Elements of business ethics

Code of ethics for MIA members


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Analysis

Issues/problemfaced by

YBLC Ltd

Suggest

possiblesolution(s)for each of

the issue(s)identified.


10/12

Questions

Why is it wrongfor the economicofficer to make

such a request?

What are theconsequences ofgiving in to the

economicofficer/s request?

How would youensure true and

fair view offinancial

reporting?


11/12

Rubric AssessmentPoor

(1)

Moderate

(2)

Satisfactory

(3)

Good

(4)

Excellent

(5)

Delivery &

enthusiasm

(40%)

No clear of ideas

Show no interest and

enthusiasm

Hard to follow of

ideas

Lack of enthusiasm

and interest

Most ideas flow but

focus is lost at times

Limited evidence of

interest in

engagement with the

topic

Clear flow of ideas

Show interest in topic

and engagement with

class

Very clear and

concise flow of ideas

Show passionate

interest in the topic

and engagement with

the class

Use of visuals

(10%)

No use of visuals Slight use of visuals Limited use of visuals

loosely related to the

material

Use of visuals related

to the material

Visuals augmented

and extended

comprehension of the

issues in unique ways

Involvement of the

class:

-questions-generating questions

-activities

(30%)

No attempt to engage

the class in learning

Little attempt to

engage the class in

learning

Questions and

discussion dressed

surface features ofthe topic

Limited use of

activities to clarify

understanding

Questions and

discussion addressed

important informationthat developed

understanding

Appropriate activities

used to clarify

understanding

Excellent and salient

discussion points that

elucidated material todevelop deep

understanding

Appropriate and

imaginative activities

use to extend

understanding in a

creative manner


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Rubric Assessment

Poor

(1)Moderate

(2)Satisfactory

(3)Good

(4)Response to class

queries

(10%)Unable to response

to questions and

discussionsLimited response to

questions and

discussion with no

reference to theory/

Satisfactory

response to class

questions and

discussion with

limited reference to

theory and

research

Good response to

class questions and

discussion with

some connection

made to theory

Excellent response

to student comment

and discussion with

appropriate content

supported by

theory.Teamwork

Peers evaluation

(10%)

Documents

To Fiddle or Not to Fiddle.ppt