project based learning (pbl) -01

7/31/2019 Project Based Learning (Pbl) -01

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SEMESTER A112


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NUR ALIA ATIQAH BT MOHD YASIN214516

NAJWA BT BASARUDDIN 214475

NURSAFIRAH BT JUMEL 214491

FAZELIN BT ISMAIL216368


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Task leader - Nur Alia Atiqah Binti Mohd Yasin

Recorder - Najwa Binti Basaruddin

Reporter - Fazelin Binti Ismail

Accuracy Coach - Nursafirah Binti Jumel


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The Situation of the problem:

Abdul Latif Ishak as the CEO of the company wantAzlan Saad, the accountant to manipulate the report

because the company is in the process of applying a 1million loan from BCD Bank for upcoming project. Thecurrent report does not show the profitable report, sothe CEO want the accountant do some adjustment toproduce a good Financial Statement to be submitted

to the BCD Bank.


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CONSULTANT:

FARID AZHAR

TASK:

MANIPULATING THE FIGURES

PAYMENT:

REPORT


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Abdul Latif Ishak Corporation.

Statement Of Comprehensive IncomeFor the year ended December 2011

Sales 47,600

Cost of goods sold 38,300

Depreciation 3,900

Taxes 800Net Income RM4,600


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1. Reserve for bad debts is reduced

by reducing the percentage of bad debtsreserved.


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2. Method for valuation of inventoryare changed

The comparison of the cost of goodssold amount between these threemethod;

METHOD COST OF GOOD SOLD

Specific Identification 1700First in First Out 1628

Weighted Average 1670


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3. Change in method to calculatedepreciation

the amount of depreciation decreases theexpenses of the company also can be

reduced


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4. Change the method to calculatesales discount

use gross method instead of net method (assume thereare the discount of 10%)


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5. Show a sustainable profitability andliquidity

good Profitability and Liquidity is the main requirementsbefore applying for loan

Ethics on this behavior

NOT SOGOOD!!!!


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6. Manipulate cash flow Azlan can increase the amount of cash inflow. Azlan can

show to the BCD Bank that they have higher sources of

cash For example, in 2000, Azlan reported it has over $4

billion in cash flow from operation the real figure was over$ 1.5 billion less than the real amount

Ethics on this behavior NOT SOGOOD!!!!


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7. Change the type of assumptionused

use the cash basis instead of accrual basis

Ethics on this behaviorNOT SO

GOOD!!!!


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8. Change or reduce the number orpercentage of company shareholder

reduce the amount of dividend paid andautomatically will increase the amount ofretained earnings

Ethics of this behavior

NOT SOGOOD!!!!


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9. Capitalized some expenses

decrease the total of expenses and

increase company asset Ethics of this behavior

NOT SOGOOD!!!!


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10. Miss application of materiality record some immateriality figure as materiality in

order to increase asset

Ethics of this behavior

NOT SOGOOD!!!!


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can manipulate- all the manipulationmust follow standard contains in

financial Reporting Standards andGAAP

learned about ethics

fight unethical behavior


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project based learning (pbl) -01

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