Guide Questions:

1. Give at least ten (10) important information which you believe are very crucial
points shared on this webinar.
o Investments
o Financial reporting
o The Impact of the pandemic to ASEAN Economy and Company’s
Financials in the Philippines
o The Impact of the pandemic to the Cash Holdings
o The Impact of the pandemic to the Inventories (IAS 2)
o The Impact of the pandemic to the PPE depreciation (IAS 16)
o The Impact of the pandemic to the application IFRS 9 Financial
Instruments
o The Impact of the pandemic to the application IFRS 16 Leases
o To normalize losses and think the other way around
o Online processes done by AI due to the pandemic
2. What is the relevance of this seminar to you as a future accountant?
As the famous saying goes, “Accounting is the language of
business.” This timely webinar has shown and motivated me, amidst the
pandemic, to become an accountant in the near future that is flexible no
matter what happens to the economy and even the whole world. Today, it
clearly shows how important it is do everything right especially financial
reporting for all concerned to make the right choices and keep improving
what they already have.
3. Give at least five (5) changes on specific accounts. Compare how they are
treated in financial reporting before and during the pandemic.
o Lessee
Before – The rent must normally be recorded as an expense over its
lifetime on a straight-line basis, with a deferred liability or asset
recorded on the balance sheet for the difference between expense and
cash outlay.
During - It has resulted in some lessors providing lessees with relief by
deferring or relieving them of amounts otherwise payable.
o Receivables
Before – Receivables usually have conditions that require payments
that are due within a relatively short period of time. Usually it varies
from a couple of days to a fiscal or calendar year.
During - Outstanding invoices may not be able to be paid by clients
adversely affected by the outbreak. Extra credit and liquidity risks,
higher than usual bad debt, and even impairments and write-offs could
result from this situation. It may also affect cash flows from operations.
o Impairment of Assets
 Before – The impairment is recognized whenever the recoverable
amount is below the carrying amount.
During – It triggers the impairment test. The company then makes an
impairment test whether the buildings need to be impaired in
accordance with IAS 36.
o Depreciation of PPE
Before – The depreciable amount should be allocated on a systematic
basis over the asset’s useful life.
During – Entities could prolong the economic life of an asset that is not
temporarily in use to minimize depreciation expense. Borrowing cost
should also be temporarily expense; the interest to be paid in the bank
cannot be capitalized to the PPE if the constructions stop but rather
expensed immediately.
o Inventories
Before – Are required to be stated at the lower of cost and net
realizable value. When inventory is sold and revenue is recognized,
the carrying amount of those inventories is recognized as an expense.
During – To be reduced in order to adjust to the low demand. Inventory
impairment should decrease the inventory and expense during that
period.
4. Based on your existing knowledge of Accounting, its evolution and current trends
in the economy, what do you think are possible future changes in Financial
Reporting?
It can easily be seen that AIs will be one of the topmost changes in
Financial Reporting. We know, for a fact, that Financial Reporting has
become more and more complicated as time passes but with the help of
this technology, more accountants and even users of financial data will be
knowledgeable on these data and how these are prepared as well as their
purposes. Truly, it is risky but we all know that change is inevitable.
SUSIE WONG
In 1985, Susie Wong joined the largest corporation in the country as a Senior Finance
Analyst. She had quite impressive credentials: second place in the local Certified
Public Accountants Licensure Exam, and MBA from the University of California in Los
Angeles. Her aptitude undeniably showed in her work. Whenever she argued a point,
she was, more often than not, right.
That was, however, her waterloo. It seemed that Susie Wong started to become
known as the terror of Finance in her Division. The task assigned to her required her
to request information from the Finance groups of her Division’s operating units.
Apparently, the inefficiency of the information system irked her and she found it
difficult to be patient with finance personnel who could not give her the information
she needed. This, aside from the fact that she could not point out a fault
diplomatically, made people wary at her.
It seemed that her previous job had given her the same problem. Because she was
grouchy with the rest of the staff, her father requested her to leave his freight-
forwarding company. But, she was not totally disagreeable. As long as conversation
was not on the job, she had made successful attempts to be sociable.
The job likewise, had certain flaws in the eyes of Susie, aside from the difficulty in
securing data, she was not happy about having to do the binding of the Annual
Budgets. She had mentioned that when she worked for an auditing firm, another,
department was specifically assigned to do the work of binding reports.
Another source of dissatisfaction for her was her boss, the Finance manager. She
was, however, not alone in this. Her immediate superior had received negative
reviews from other staff members both within and outside the finance group for his
stringent demands, aloofness, and inability to give ordered directions. Neither did
Susie allow herself to be cowed by him.
The job of Head of her section had been vacant for a year. When Susie was hired,
there had been an understanding that she would be considered for the job. And,
except that the other members of the section were not reporting to her, she was
practically doing the work of the section head. When her boss had observed that she
had been making significant advances in gaining rapport with the other members of
the section, he went so far as to say, unofficially, that the appointment would be given
to her.
However, a Section Head in one of the operating units had requested to be
reassigned to Manila for personal reasons, and the position was given to him. From
the start, it had become quite obvious that Susie was technically superior to her new
head. Arguments between them had come as far as to cause the new head to
reprimand her insubordination officially, in writing.
The Finance Manager, too, had not been satisfied with the performance of the new
section head, but since it was not a corporate practice to fire people, he had him
transferred to another operating unit. Yet, the job of Section Head was again given to
another Senior Finance staff from the corporate Head Office, and not to Susie Wong.
Not surprisingly, Susie had started to let her resentment for the Finance Manager
show in the deliberate half-hearted manner in which she accomplished her tasks. It is
unfortunate that the immediate recipient of the effects of her inefficiency was the new
Section Head, and not the Finance Manager.

QUESTIONS:
1. Why Susie Wong was always by passed in promotions?
It is undeniable that Susie has very impressive credentials that
could be her advantage during promotions. But more than ever, employers
look at their employees’ attitude and ethics in working especially with how
they deal with other people or co-workers. Nowadays, they value EQ more
rather than IQ and I believe Susie should’ve worked on that more. Due to
this negative personality of hers – disrespectful, impatient, arrogant,
always complaining, and “know-it-all”, she became unlikeable, hence less
chances of being promoted. This resulted to her low efficiency in her
workmanship which added to the reasons why she wasn’t promoted. This
personality of hers is evident on her previous job in her father’s company
so even if she was his daughter, he still asked her to leave. Still, even
after landing on her next job, she hasn’t learned her lesson. She had the
same unpleasant working relationship with her fellow employees. Often
times, being knowledgeable gets into her head and she forgets that she is
not the boss and even if she was, she still needs to respect the others.
2. Was management justified in not promoting her?
Aside from her bad attitude and relationship with fellow employees,
she became inefficient in doing her job so I think it was a good decision to
deny her the promotion. The position requires someone who is patient,
humble, respectful, sociable, positive, a good leader in general but she is
none of those. And again, she wasn’t excellent in her doing her job
anymore. If all she cared about was to just walk her way in to her ambition
 and not really work hard for it or atleast have the qualifications, then she is
not fit for it. Therefore, I conclude that the decision of the management
was justified.
3. How did this non-promotion affect her?
Naturally, because of her strong desire to get the promotion but
was denied, she started to become angry which resulted to less efficiency
in her work, her tasks were done half-heartedly and her attitude became
worst. The event did not only affect her but also her co-workers especially
the team she belongs in because they have to deal with this undesirable
personality of hers. All in all, she took the decision of her superiors
negatively so from being the best in her work, now unable to deliver well.
4. What are the problems in this case?
In this situation, there are quite a lot of concerns, some are
obvious and visible while some are hard to figure out. On Susie's part,
however, there are unattained desires, complexes of dominance, and
disappointment. For the company, it is the lack of encouragement for
their workers in the work atmosphere of the business, give away hollow
assurances and false expectations, dysfunctional working relationships,
and miscommunication or no communication at all, employee job
description/duties and obligations are not transparent to them, and the
organizational community as a whole requires constant nurturing.
5. Propose ways of resolving these problems.
 Goals and targets should be set clearly
 Job description of each employees should be clear to them to be
aware of their accountabilities
 Conflicts and complaints should be dealt professionally
 Individual and group mediation
 Provide training and anger management seminars
 Create a just and tight working environment so as to avoid tension
 Give credit to whom it is due because efforts and achievements of
employees if recognized by employees give boost and motivation to
do their best over and over again

What are the problems in this case?

There are quite a number of problems in this case, some are
clear and noticeable while some are difficult to point. Nevertheless, on
the part of Susie, there are unattained expectations, superiority
complexes, and dissatisfaction. On the company’s work environment, it
is the lack of motivation toward their employees, giving away empty
 promises and false hopes, unhealthy working relationship, and
miscommunication or no communication at all, job description/duties
and responsibilities of the employees are not clear to them and the
corporate culture as a whole needs a constant nurture.
Propose ways of resolving these problems.
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