Reyes, Mikhail Eduard

Escarez, Cloy Aubrey

Assignment on CSR

1. What examples did you find of accountung theories being portrayed in the movie? (2 theories only)

-Confidentiality

-Substance over form

2. How was the theories portrayed in the movie

(1) Confidentiality

The plan was only to be disclosed to Peter, Jim and Linda but it was spilled in the media later on.

(2) Substance over form

Kravis's final bid is declared the winner, even though Johnson's was higher. Substance of
transactions and events must be chosen all the time rather than just their legal form or opinionated
decisions in order to present a true and fair view of the affairs of the entity.

3. What is the role of the board of the directors and how much power they seem to exert?

The role of the Board of Directors are to ensure the prosperity of the shareholders and
stakeholders by exercising accountability to them. They exert power by making big decisions for the
company, electing the CEO, overseeing the performance of the company, approving rules, policies and
strategies and setting structure for the business. In the movie they become careful in choosing who will
win in the bid for the sake of shareholders.

4. What was the role of accounting in the movie?

Accounting has a role in the movie in terms of showing the confidentiality and accountability that
must be observe and in the decision making by analyzing in the method of substance over form. The
company may be in the wrong hands because of those bids that are not that feasible. It shows in the
movie that it must be probable and reliable and not tolerating remote amounts.