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    Maf671 - Case Summary

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    Sheikh Are-kim
    This case study concerns the centralization of accounting functions and a business process improvement initiative at AirportCo, a large Southeast Asian airport operator. AirportCo engaged consultants to implement a reengineering program in two phases from 2009 to 2013 to improve processes and address inconsistencies between subsidiaries. However, the new structures and processes did not clearly define the strategic roles of accountants, hindering their ability to provide value-added services as the company intended.

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    Maf671 - Case Summary

    Uploaded by

    Sheikh Are-kim
    169 views9 pages
    This case study concerns the centralization of accounting functions and a business process improvement initiative at AirportCo, a large Southeast Asian airport operator. AirportCo engaged consultants to implement a reengineering program in two phases from 2009 to 2013 to improve processes and address inconsistencies between subsidiaries. However, the new structures and processes did not clearly define the strategic roles of accountants, hindering their ability to provide value-added services as the company intended.

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    Maf671_ Case Summary

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    This case study concerns the centralization of accounting functions and a business process improvement initiative at AirportCo, a large Southeast Asian airport operator. AirportCo engaged consultants to implement a reengineering program in two phases from 2009 to 2013 to improve processes and address inconsistencies between subsidiaries. However, the new structures and processes did not clearly define the strategic roles of accountants, hindering their ability to provide value-added services as the company intended.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    169 views9 pages

    Maf671 - Case Summary

    Uploaded by

    Sheikh Are-kim
    This case study concerns the centralization of accounting functions and a business process improvement initiative at AirportCo, a large Southeast Asian airport operator. AirportCo engaged consultants to implement a reengineering program in two phases from 2009 to 2013 to improve processes and address inconsistencies between subsidiaries. However, the new structures and processes did not clearly define the strategic roles of accountants, hindering their ability to provide value-added services as the company intended.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    CASE STUDY 1

    CASE STUDY 17:


    Changing Roles of Accounting and Accountants in Airport Co
    CASE SUMMARY
    • This case study concerns the centralization of accounting functions and the business
    process improvement (BPI) in AirportCo. AirportCo is a public listed company that
    operates and manages airports in a Southeast Asian country. Its hierarchy draws upon a
    centralized organizational structure. AirportCo has been experiencing significant increases
    in financial performance due to massive number of business expansions and
    collaborations.
    • In 2013, the general manager of the finance division of AirportCo explained the need for
    an accounting change programme known as the business process improvement (BPI)
    which was formed as part of the broader reengineering plan in AirportCo. This plan is for
    the company’s long-term plan to improve its business performance. AirportCo engaged a
    group of consultants to implement its reengineering programme in two phases. Phase I
    was completed in 2009 and phase II was recently concluded since its implementation
    began in 2010.
    • Although the Finance and Procurement Service Delivery Model was partially feasible for
    AirportCo, mainly due to the lack of competent accountants to take up the strategic
    insight roles, there appeared to be increasing differences and inconsistencies between
    different subsidiaries. This had hindered the efficient and effective delivery of new and
    evolving accounting and accountants’ roles as value added services and assets to
    AirportCo under the revamped accounting structures and processes.
    • The justifications and underlying causes that prompted AirportCo to centralize its
    accounting functions which indeed brought some good changes to the accounting and
    reporting structure to the group. Nevertheless, AirportCo appeared to have misconstrued
    the roles of business advisory to the Business Partnering unit. This had given rise to the
    negative consequences perceived by the AirportCo accountants.
    •
    LEARNIN
    G • Analyse the situation that leads to
    manipulation and accounting scandals
    OBJECTIV in a company

    ES • Analyse the role of the board of


    directors in ensuring a good governance
    and internal control of a company
    LEARNING OBJECTIVES
    • Analyse the situation or issue that leads to changes in an accounting
    system
    • Apply the proper method to change the accounting system
    • Analyse the benefits and disadvantages of the new accounting system
    QUESTIONS -5%
    1. What are role of the regulators and stakeholders in curbing an
    accounting scandal?
    2. What factors influence the bad governance of a company?
    CASE
    STUDY 2
    CASE 09
    The Gaming Hub:
    Budgeting for Starting
    a New Venture
    • Creative Venture Sdn Bhd (CVSB), located in
    Kuala Lumpur, produces e-games. Taking
    advantage of the growing trend of e-games
    in Malaysia, CVSB would like to propose a
    new business venture called ‘The Gaming

    CASE Hub’ which will provide the facilities for e-


    games players to rent a space to train and
    play, and provide a community-based

    SUMMAR platform for players in Kuala Lumpur.


    • Farid was hired in July 2018 as the finance

    Y
    manager and was asked to propose the new
    business venture before 15 December 2018.
    • Farid has seven weeks to prepare a
    proposal that could convince the top
    management to invest in the venture. The
    proposal should include a master budget, a
    breakeven analysis and a growth plan.
    LEARNING OBJECTIVES
    • Prepare a master budget for a new hub
    • Use the breakeven analysis for the setting up of the new hub
    • Critically assess the feasibility of setting up the new hub
    Questions- 5%
    1. What strategies can a company make to enter into a new market?
    2. How can a firm’s pricing strategy affect its financial position?
    3. What are the factors influencing the pricing strategy of a firm?
    4. How would you asses the competitive position of a company?

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