1 What is the meaning of the expression lifting the corporate veil? Generally, in what circumstances will a court lift
the corporate veil under common law? Give case laws to support your answer.
2 Mango Travel Ltd (Mango) is a Hong Kong travel
Name 5 possible remedies available to the innocent party if the other party in a contract is in breach
of a contract.
ii) Under what circumstances can merchantable quality in a consumer sale be excluded?
iii) Devil Computers Ltd (DCL) prod
State whether the following situation involves criminal or civil law and give a reason for your decision:
John went into New World Department Store and broke a glass case.
Chris has been arrested by Custom & Excise Departmen
Cindy offered to sell a second-hand leather sofa to Betty at HK$1,500. Betty said she would buy it for
HK$1,000. After some negotiation, Cindy was willing to sell it for HK$1,200, but Betty said that she
needed three days to think about it.
A regulation of a district council prevents members of the public from bringing vehicles into the
public parks and gardens in its area. The regulation, which is prominently displayed on all signs and
notice boards in the councils parks and ga
Distinguish whether the following is an offer or an invitation to treat:
i) An advertisement which states that $500 will be rewarded for finding a lost dog.
ii) A display of clothes in a shop window marked Special Offer.
iii) A second hand ca
1 ABC Company manufactures and markets electrical goods. A new model of electric fan is introduced and, after a
number has been sold, is found to have a fault in the wiring which could prove to be dangerous. To what extent may
ABC Company be l
Betty is an estate agent in Tsuen Wan. Mr. Chan, the seller, has a property in the Riviera Gardens which is
open for sale at the price of HK$2 million. The estate agency which Betty worked for does not allow
Betty to receive secret commissio
John and his father go to the office of Tom, a corporate lending officer with ABC Bank in order for John
to secure a loan for his new software business. Tom is skeptical since John has no track record in
business, but finally relents to givin
Mary was a young widow lacking business experience. She owned a house in mid-level, Hong Kong.
Norman, a stranger, rented the house for two tears. During that time, he was very attentive to Mary, who
was quite ill and easily influenced. Cons
Revenue (HKAS 18)
Borrowing Costs [(HKAS 23
Part I : Revenue
According to the conceptual framework of HKFRS, income should be
measured on accrual basis where expenses are matched with revenue.
Revenue should be recognised when it is pro
Types of Business Structure
Limited Liability Company
McKeith, John & Collins, Bill (2013). Financial Accounting and Reporting. UK: McGrill
Ethical Reasoning: Implications fo
r Accounting /
Ethical Decision Making in Accou
Fraud in Financial Statements
What is Ethics?
Ethics (Greek) = Moral (Latin) or Moral Phi
The concepts of right or wrong behaviour
Do not change as o
Regulatory Framework of
Financial Reporting in Hong
Kong & Overseas
Related Party Disclosures
[HKAS 24 (Revised)]
Regulatory Framework of Financial
Reporting in Hong Kong
International Financial Reporting
1. Regulatory Fr
Earnings Management and the Qua
lity of Financial Reporting
What is Earnings Management?
Earnings Management occurs when companies artifi
cially inflate or deflate their revenues or prof
its, or earnings per share figures.
The end result is to dist
BUS 20281 Unit 9 Investment Properties (HKAS 40)
Illustration I : Transfer under the Fair Value Model
P.P.E. or Inventory
Given: account balance of I.P. is $80 and its fair value on date of transfer is $100.
P.P.E. or inventory