The Chief Finance Officer has presented to the Board of Directors of a Public University the Annual Financial Report and Statement for approval. As a member of the Board, you have been asked to study the Financial Report and prepare a paper for further discussion at the next Board meeting. The University has a student population of 12,000 with 1,900 staff comprising of 1,000 academic staff and 900 Non Academic. In 2018, the University had 1600 staffs. The University has completed the construction of the main campus that will allow an increase of student capacity to 20,000. Question 1 : Your first task is to study the Assets and Liabilities of the University. a) What are Assets? Please also discuss the value of asset over time. Give examples of University assets that will increase in value and assets that will decrease in value over time. Hint: if you buy a car for RM 100,000 in 2016, how much money will you get if you sell your car now in 2020? b) Total Assets for 2019 compared to Assets for 2018? Discuss the sudden increase in value of the Assets. c) What are Liabilities? Total Liabilities for 2018 and give your comments on Assets/Liabilities of the University. What does it mean if the Liabilities are more than the value of the Assets? Observation, Conclusion and Suggestions for further actions. 130 MARKS CO3, PO111 PUBLIC UNIVERSITY OF MALAYSIA BALANCE SHEET as of 31 December 2019 2019 2018 NONCURRENT ASSETS Real Estate, Plants and Equipments Works in Progress 661 344.250 74.201,698 433,092 233 50,642,217 TOTAL NONCURRENT ASSETS 735 545.948 485,734,450 CURRENT ASSETS Student Debtors Other Debtors Deposits and Advance Payments Fixed Deposits Cash on Hand and in Bank TOTAL CURRENT ASSETS TOTAL ASSETS 5,605,235 13.558,457 8.675.418 88.501,868 16.622.111 8.570,028 12,048,879 12.834.986 98.321.888 28,081,252 132.964,089 868.510,037 159,857,033 645,591,483 34,442,819 6,401.890 41,091,105 13.727,727 (5.478,033) 2.027,591 1.104.279 95,033 283.147 381.147 251,971,732 2,185,427 2,185427 381,147 (4,300,942) 300,963.561 (3,063,736) 41,985,026 EQUITY Operating Expenditure Fund Trust Fund Development Fund Loan Fund Student Residence Fund Enterprise Fund Endowment Fund Asset Fund Excess Revaluation Accumulated Deficit of Subsidiary TOTAL EQUITY NONCURRENT LIABILITIES Long Term Borrowings Financial Leases Long Term Employee Benefits Deferred Revenue TOTAL NONCURRENT LIABILITIES CURRENT LIABILITIES Short Term Borrowings Short Term Employee Benefits Creditors Provision for Income Tax TOTAL CURRENT LIABILITIES TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES 40,451 117353 1.729,614 549,751,315 551,638,733 55.876 117.377 1,809,760 584.138.188 586,121,201 15,418 15,447 2,030,412 13.921.650 233 2,087,905 15.381,671 233 15.967,743 17,485,256 567.606.476 603,606,457 868.510,037 645,591,483
