BKAR 3043 FINANCIAL ACCOUNTING AND REPORTING IV

MINI CASE 1 (2%)

A212
Due date: 16/04/2022

For the financial year 2020, EZ Bhd recorded a 37.9 % decrease in revenue from RM26.4
million in the previous financial year to RM16.4 million in this financial year, a decrease of
RM10 million. The decrease in the Group’s total revenue was mainly due to lower contribution
from the plantation segment. This was mainly due to the lower crude palm oil commodity prices
coupled with lower fresh fruit bunches (FFB) production during the financial year under review.
EZ Bhd currently owns and manages 4,019 hectares of oil palm plantation located in the state of
Pahang. Due to the shortage of production of FFB, EZ Bhd plans to expand palm oil plantation
to the new area in Terengganu, to cater for the long-term market demand.

The board of directors of the company has two options for the business strategy expansion,
firstly by acquiring shares of an existing plantation company in Terengganu to exercise
significant influence over the business operations. Secondly, through joint venture
arrangements, both parties could share costs and risks. The company’s Chairman seeks the
management team to do some study and come out with the best recommendation between these
two options to be proposed in the BOD meeting for the strategic planning of EZ Bhd business
expansion strategy.

The written report for the business expansion strategy whether to invest as an associate
company or joint venture should be handed over to BOD at the earliest date possible for the
BOD to discuss in the meeting. The guide for the report is as follows: a maximum of 7 pages
require to include: (1) Problem identification, (2) Discussion about the associate company and
joint venture (analyze the problem), (3) Discussion on the advantages and disadvantages of
associate company and joint venture (generate ideas or solutions) (4) The final decision with the
justification of the preferable type of business expansion for EZ Bhd (evaluate and make a
decision).

REPORT FORMAT
1. Group project: maximum 5-6 members in a team.
2. The report limits to 7 pages.
3. Line spacing: 2 & Font: Arial (size 12)
4. Soft-copy submissions upload to UUMOL.
5. To state the members' names on the cover page of the report.
6. To include References at end of the report.
7. The marks will be given if sufficient details and explanations are provided to justify the
answers.
8. Assessment Rubric: Critical Thinking and Problem Solving (CTPS)

Citations of the work in the paper should be by the name of the author(s) followed by the year of
publication using American Psychological Association (APA) style 6th edition and carefully

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checked for completeness, accuracy and consistency. Please consult the Publication Manual
ISBN 1-55798-790-4 or http://www.apastyle.org/elecref.html for further style guidelines.