UUM Repository | Universiti Utara Malaysian Institutional Repository
FAQs | Feedback | Search Tips | Sitemap

AirAsia Berhad’s accounting in the spotlight

Abdul Malak, Siti Seri Delima and Wan Hussin, Wan Nordin (2019) AirAsia Berhad’s accounting in the spotlight. Emerald Emerging Markets Case Studies, 9 (1). pp. 1-26. ISSN 2045-0621

[img] PDF
Restricted to Registered users only

Download (256kB) | Request a copy


Learning outcomes: The case is appropriate for courses in financial accounting and reporting, audit and assurance, forensic accounting, accounting practice and regulations and corporate governance. After studying the case, students should be able to explain the concept of control and power under IFRS; explain the concept of economic; discuss audit committee and external auditor independence issues and ways to strengthen auditor’s independence; assess the usefulness of the new extended audit report; and evaluate the role of gatekeepers such as financial analysts, audit committee, external auditor, institutional investors and regulators in enhancing the quality of financial reporting.Case overview/synopsis: This case focuses on the accounting policy choices of the foreign associates of AirAsia Berhad. AirAsia Berhad is a phenomenal success, from a debt laden company to having been voted as World’s Best Low-Cost Airline in the annual World Airline Survey by Skytrax for eight consecutive years from 2009 to 2016 and the World’s Leading Low-Cost Airline in the annual World Travel Awards for four consecutive years from 2013 to 2016. In June 2015, an analyst report was leaked, and it led to heated discussion and exchanges in the market. The report questioned the non-consolidation of AirAsia Berhad associates. The share market also reacted. Various players in the market came into foray with their statements and opinions on the merit of the accounting policy choice by AirAsia Berhad. Whose views actually reflect the nature of accounting policy choice that is true and fair? Are these gatekeepers attesting to the accounting crux of substance over form?

Item Type: Article
Uncontrolled Keywords: Corporate governance, Accountability, Accounting/accountancy, Accounting standards, Auditing, Audit committees/culture
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
Depositing User: Mrs. Norazmilah Yaakub
Date Deposited: 10 Apr 2019 00:37
Last Modified: 10 Apr 2019 00:37
URI: http://repo.uum.edu.my/id/eprint/25879

Actions (login required)

View Item View Item