Open Access1MDB: The Financial Accounting’s Question of Going Concern
Author(s) -
Asmadi Ali
Publication year - 2016
Publication title -
journal of public administration and governance
Language(s) - English
Resource type - Journals
ISSN - 2161-7104
DOI - 10.5296/jpag.v5i4.8884
Subject(s) - quarter (canadian coin) , insolvency , business , bankruptcy , financial distress , debt , finance , payment , accounting , economics , financial system , archaeology , history
It was only in the second quarter of 2015 that the authorities had admitted that the 1Malaysia Development Berhad (1MDB) was a company experiencing financial distress. But it appeared that the company had began to suffer from insolvency as early as the last quarter of 2014 when it began to fail to make timely payments on both assets purchased and debts overdue. It also seemed that the company had succeeded in hiding its going concern question with the repeated acts of revaluation of some of its assets over the years. Without such revaluations, the company would have shown significant losses in its income statements for many years leading to the picture that it was in fact a company in financial distress.