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The cumulative effects of global warming may require all governments to introduce regulations to mitigate the impact of business activities on the environment. Using the various theories of regulation, critically discuss why governments may introduce regulations and whether such regulations will result in changes to how current business activities are carried out.

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The cumulative effects of global warming may require all governments to introduce
regulations to mitigate the impact of business activities on the environment. Using
the various theories of regulation, critically discuss why governments may
introduce regulations and whether such regulations will result in changes to how
current business activities are carried out.
Question 5 (Total: 25 marks)
(a) Classy Hotels and Resorts Group (Classy) owns and operates over 50 hotels and
resort properties in the Europe, the Americas, China and other regions. The
segmental revenue, profit/(loss), assets and liabilities are shown below.
Region
Revenue Segment Segment Segment
External Internal Profit/(Loss) Assets Liabilities
RM’m RM’m RM’m RM’m RM’m
Europe 350 10 (25) 300 200
Americas 250 30 60 800 300
China 550 5 75 1,200 550
Others 200 5 (10) 850 350
Required:
(i) Determine the reportable segments of Classy Group based on MFRS 8 –
Operating Segments.
(5 marks)
Sunway University Business School Sample ACC3054 Final Examination
7
(ii) Critically discuss why entities which are outside the scope of MFRS 8 might
prepare and disclose segmental information on a voluntary basis.
(5 marks)
(b) The cumulative effects of global warming may require all governments to introduce
regulations to mitigate the impact of business activities on the environment. Using
the various theories of regulation, critically discuss why governments may
introduce regulations and whether such regulations will result in changes to how
current business activities are carried out.
(10 marks)
(c) IFRIC 15 applicable to property developers is now in effect from 1 January 2012.
Identify and evaluate the key economic and social consequences of this particular
accounting interpretation.
(5 marks)

 
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