Datuk Boh Hong is presently enjoying a term loan facility of RM470,000-00 from Triple Ace Bank Bhd.
Question:
Datuk Boh Hong is presently enjoying a term loan facility of RM470,000-00 from Triple Ace Bank Bhd. He has now applied for an additional overdraft facility of RM1.2 million.
Ms Liang Looi is the credit officer processing the application for Datuk Boh Hong.
On her 26th birthday on 5 February 2000, Datuk Boh Hong presented Ms Liang Looi with a 24 carat gold bracelet and a birthday card printed with the following words:-
"To my most beautiful and efficient banker, Ms Liang Looi,
This little gift is given to you in appreciation for all the help and charming attention that you have given my staff and me over the years. I have always looked forward to that delightful
smile of yours every time I am in the bank. You are indeed God's gift to all bank customers in Malaysia.
Sincerely Yours,
Datuk Boh Hong
P/S I look forward to your favourable recommendation for my revolving credit facility.
It is rather urgent. Thanking You in advance.
Ms Liang Looi was estatic over the gift. However, Hup Choe, her colleague has strongly advised Ms Liang Looi to return the gift.
Ms Liang Looi is now confused. Advise her.
Your group has to address the following issues:-
1) What is your group's advice to Ms Liang Looi?
2) If Datuk Boh Hong did not present Ms Liang Looi a 24 carat gold bracelet, but instead bought her a sumptuous lunch or dinner, what would be your group's recommendations ? Provide reasons to support your recommendation.
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield