Analysis of Current Disclossure Practices by Top 50 Approved Companies in Malaysia

1934 Words4 Pages
bulb-icon

Recommended: objectives of international accounting standards committee foundation

IFRS are accounting standards issued by the IASB, an independent organization based in London, UK. They purport to be a set of rules that ideally would apply equally to financial reporting by public companies worldwide. Between 1973 and 2000, international standards were issued by the IASB’s predecessor organization, the International Accounting Standards Committee (IASC), a body established in 1973 by the professional accountancy bodies in Australia, Canada, France, Germany, Japan, Mexico, Netherlands, United Kingdom and Ireland, and the United States. IFRS are forefront on the immediate agenda because, starting in 2005, listed companies in Europe Union countries are required to report consolidated financial statements prepared according to IFRS. At the time of speaking, companies are preparing for the release of their first full-year IFRS compliant financial statements. Investors have seen interim reports based on IFRS, but have not yet experienced the full gamut of year-end adjustments that IFRS might trigger. In Malaysia, formal financial reporting standard setting activities commenced during the early 1970s. A technical committee was formed in 1971 with the remit to act on a letter dated 10 September 1971 sent by Bank Negara to the President of Malaysian Association of Certified Public Accountants (MACPA). MACPA is now known as Malaysia Institutes of Certified Public Accountants (MICPA). It is set up by individuals as a private association in 1958 (Susela, 1999). After an extended hiatus marked by a high level of inactivity, the Malaysian Institute of Accountants (MIA) was approached to develop a standard in 1987. A key development in the regulation of financial reporting in Malaysia transpired in July 1997, when the Financi... ... middle of paper ... ...adebaugh, L., S. J. Gray, et al. (2006). International Accounting and Multinational Enterprises, Wiley, John & Sons, Incorporated. Sevin, S., Schroeder, R. and Bhamornsiri, S. (2007). Transparent Financial Disclosure and SFAS No. 142, Managerial Auditing Journal 22(7), 674- 687. Susela, S. D. (1999). “Interest” and Accounting Standard Setting in Malaysia Accounting, Auditing & Accountability Journal 12(3), 358-387. Teodori, C. and M. Veneziani (2007). Intangible Assets in Annual Reports: A Disclosure Index (3rd Annual Workshop). European Financial Reporting Research Group - Accounting in Europe, Paris. Wallace, R. S. O. and K. Naser (1995). "Firm-Specific Determinants of the Comprehensiveness of Mandatory Disclosure in the Corporate Annual Reports of Firms Listed on the Stock Exchange of Hong Kong." Journal of Accounting and Public Policy Vol. 14: pp. 311-368.

Show More
Related

  • Swot Analysis Of Tyson Foods

    1443 Words  | 3 Pages

    The annual report or 10-K of a company is a useful source of information for many agents outside of the corporation. Shareholder’s can view the contents of an annual report to get a more comprehensive idea of what the company is built upon. Additionally, annual reports show a company’s progress over the past financial periods and give a detailed breakdown of company investing and operations. The 10-K and all related documents are easily accessible on a company’s website for the public to view. i

    Read More

  • Why Was Codification Needed?

    1008 Words  | 3 Pages

    The goal of the Codification is to simplify the organization of thousands of authoritative U.S. accounting pronouncements issued by multiple standard-setters. To achieve this goal, the FASB initiated a project to integrate and topically organize all relevant accounting pronouncements issued by the U.S. standard-setters including those of the FASB, the American Institute of Certified Public Accountants (AICPA), and the Emerging Issues Task Force (EITF)

    Read More

  • Comparing GAAP And IFRS And The Accounting Standards And Differences

    1346 Words  | 3 Pages

    We would love for these impacts to always have a positive impact; however the impact can affect a company in a negative manner. “ Researchers Holger Daske, Leuz Hail, Christian Leuz and Rodrigo Verdi examined 3,100 firms in 26 countries mandated to adopt IFRS in “Mandatory IFRS Reporting around the World: Early Evidence on the Economic Consequences”. The study examines the economic effects of IFRS, both early and mandated adoption” (Bolt-Lee). They were able to conclude that a company’s adoption of IFRS creates strong economic benefits in countries with rigid regulation over financial reporting. The article also explains that these benefits include an increase in the stock’s market value, an increase in market liquidity, and a lower cost of capital. Companies with major differences between GAAP and IFRS standards show the greatest benefit when supported by a strong regulatory

    Read More

  • The Differences Between the GAAP and the IFRS Accounting Systems

    1089 Words  | 3 Pages

    What is IFRS, and what is its significance in the world market? In 2001 the International Accounting Standards Board, or IASB, was created to develop a set of standards by which global financial statuses could be reported. According to financialstabilityboard.org, this set of standards, known as the International Financial Reporting Standards, or IFRS, falls under the jurisdiction of the IFRS Foundation, which is a non-profit, private and independently run entity that exists for the public interest, is based on four principle objectives. The first is to develop a single set of international financial reporting standards (IFRS). This set would be high in quality, readily understandable, easily enforceable, and acceptable world-wide. The second objective is to encourage the use of this set of standards in the international business world. Thirdly, the ISAB would like to monitor the needs of different sizes and types of businesses in different settings. The fourth objective is to promote the adoption of the IFRS by converging national accounting standards wit...

    Read More

  • Accounting profit and True Profit

    996 Words  | 2 Pages

    Olusegun Wallace, R. 1996. The Development of Accounting Research in the UK. In: Cooke, T. and Nobes, C. eds. 1997. The Development of Accounting in an International Context. London: Routledge, pp. 218-254.

    Read More

  • Budget Analysis

    1842 Words  | 4 Pages

    Marshall, M.H., McManus, W.W., Viele, V.F. (2003). Accounting: What the Numbers Mean. 6th ed. New York: McGraw-Hill Companies.

    Read More

  • Financial vs. Managerial Accounting

    1091 Words  | 3 Pages

    Albrecht, W. S., Stice, J. D., Stice, E. K., & Skousen, k. F. (2002). Accounting Concepts and Applications. Cincinnati: South-Western.

    Read More

  • Absorption/Full Costing, Variable/Marginal Costing, and Activity Based Accounting

    2524 Words  | 6 Pages

    Sulaiman, M. b., Nik Ahmad, N. N. & Alwi, N., 2004. Management accounting practices in selected Asian countries: A review of the literature. Managerial Auditing Journal, 19(4), pp. 493-508.

    Read More

  • Private And Public Accounting: The Aspects Of Private Company Financial Reporting

    1240 Words  | 3 Pages

    Schofield (2014) researches the difference between public and private company financial reporting. For instance, a private company has fewer consumers reviewing their financial statements, whereas public companies could have multiple consumers reviewing financial statements. In addition, private companies typically have less specialized accounting personnel, whereas public companies will have several. Lastly, Schofield (2014), reviewed the number of amendments proposed and finalized to help benefit private companies financial reporting.

    Read More

  • A Critical Component Of Any Accounting Theory Course

    1218 Words  | 3 Pages

    According to the conceptual framework, the potential users of financial statements are investors, creditors, suppliers, employees, customers, governments and agencies, and the general public (Financial Accounting Standards Board, 2006). The primary users are investors, creditors, and those who advise them. It goes on to define the criteria that make up each potential user, as well as, the limitations of financial reporting. The FASB explicitly states that financial reporting is “but one source of information needed by those who make investment, credit, and similar resource allocation decisions. Users also need to consider pertinent information from other sources, and be aware of the characteristics and limitations of the information in them” (Financial Accounting Standards Board, 2006). With this in mind, it is still particularly difficult to determine whom the financials should be catered towards and what level of prudence is necessary for quality judgment.

    Read More

  • Malaysia Accounting Case Study

    2000 Words  | 4 Pages

    This assignment is dedicated to analyze the development of the accounting profession in Malaysia and evaluate the future direction of Malaysia’s accounting profession. Accounting defines as the process of identifying, recording, measuring and communicating the financial information. It shows the profits or loss for the period, the value of the of a firm’s assets, liabilities and owner equity. Accounting as a profession has a very important role to play in the economic development of any country. Accounting provide information on the resources that available to a firm and the outcome accomplish through their use. Accounting professional are prepared to provide essential guidance to help organizations achieve long-term financial,

    Read More

  • Development Comparison of Corporate Governance in Malaysia and Singapore

    1114 Words  | 3 Pages

    Securities Commission Malaysia. (2014). General Section: Audit Oversight Board. Retrieved March 26, 2014, from Securities Commission Malaysia: http://www.sc.com.my/general_section/audit-oversight-board/

    Read More

  • Financial Ratio Analysis

    1415 Words  | 3 Pages

    Marshall, D. H., McManus, W. W, & Viele, D. (2002). Accounting: What the Numbers Mean. 5th ed. San Francisco: Irwin/McGraw-Hill.

    Read More

  • Accounting and Finance

    1550 Words  | 4 Pages

    Marshall, D., McManus, W., & Viele, D. (2004). Accounting: What the numbers mean. [University of Phoenix Custom Edition e-text]. New York, NY: McGraw-Hill Companies.

    Read More

  • Corporate Governance In Malaysia Essay

    1440 Words  | 3 Pages

    Based on this article, Malaysia involved in the economic crisis in the end of 1997. The Malaysian economic downturn exposed the consequences of poor corporate governance and prompted the formation of a high level Finance Committee on Corporate Governance (FCCG). The main focus of FCCG is to review and reform corporate governance in Malaysia comprehensively. In order to make a reformation, FCCG has played their role by sets out the principles of good corporate governance for Malaysia as a guideline and also proposes the code of best practice for companies. All of the recommendations of these principles are to strengthen laws, enhance disclosure and transparency, promote effective enforcement and emphasis on training of directors. Malaysian Code emerged from an urgent demand for businesses to exhibit greater transparency and accountability as it is largely modeled after the UK Codes. In UK, listed company under London Stock Exchange must disclose in their annual report the extent of compliance. The Hampel report’s main objective is to produce a set of general principles that allow flexibility in interpretation. Then the UK Code Combined derived from the Hampel report. So, there are similarity that we can see here when all companies in Bursa Malaysia are al...

    Read More

More about Analysis of Current Disclossure Practices by Top 50 Approved Companies in Malaysia

Open Document