b) Petrol Berhad prepares financial statements to 30 June each year. Consider each of the following . Petrol Berhad is an oil company that is exploring oil off the shores of Bora Bora Islands. It has employed oil exploration experts from around the world. Despite all efforts, there is a major oil spill that has grabbed the attention of the media. Environmentalists are protesting and Petrol Berhad has engaged lawyers to advise it about legal repercussions. In the past, other oil companies have had to settle with the environmentalists, paying huge amounts in out of-court settlements. The legal counsel of Petrol Berhad has advised that there is no law that would require it to pay anything for the oil spill. The government of Bora Bora Islands is currently considering such legislation, but the legislation would probably take another year to be finalised as of the date of the oil spill. However, in its television advertisements and promotional brochures, Petrol Berhad often has clearly stated that it is very conscious of its responsibilities toward the environment and will make good any losses that may result from its exploration. This policy has been widely publicised and the CEO has acknowledged this policy in official meetings when members of the public raised questions to him on this issue Petrol Berhad estimated that the cost to clean up 2. Petrol Berhad is taking legal action against Sunway Berhad for failing to deliver on contracts for its product. The lawsuit is in the final appeal. The legal advice is that it is probable that Petrol Berhad will win the case and will be awarded RM500,000 The directors of Petrol Berhad decided to close down one of the company's operations in Melaka on 2 May 2016. This would involve redundancy payments of RM2,000,000. As at 30 June 2016, the decision had not been announced and had not been acted upon by the company