Examining The Financial Statements Of Ytl Cement Berhad Accounting Essay
The fabrication company stated in Bursa Malaysia which is YTL Cement Berhad. YTL Corporation carries out its Cement Manufacturing through its subordinate YTL Cement Berhad.
YTL Cement is one of the largest, most efficient and profitable makers of cement and ready assorted concrete merchandises in Malaysia. The chief activities of YTL Cement Berhad involve the industry and supply of cement merchandises, prey merchandises, concrete merchandises, processing and supply of ready-mixed concrete and related services to the building sector. The mark market of the YTL Cement Berhad is those contractors.The trading company listed on Bursa Malaysia is The Store Corporation Berhad.
The Store Corporation Berhad is an investing keeping company engaged in the proviso of direction services. It is chiefly engaged in retail operations in Malaysia. Besides, The Store Corporation Berhad is a taking operator of supermarkets, hypermarkets and departmental shops in the state. The Store Corporation non merely recognized as the largest supermarket and departmental concatenation by The Malaysia Book of Records since 2001, it is besides the oldest bing supermarket which have section concatenation in Malaysia. It is besides the lone Malayan retail merchant with mercantile establishments established in every province of the Peninsular Malaysia, with 51 supermarkets and section shops.
However, the mark market of The Store is the consumer of difference necessity.The finance sector listed on Bursa Malaysia is Public Bank Berhad. Public Bank Berhad is a taking fiscal services supplier which functioning over five million clients in Malaysia. The Public Bank Group is extremely reputed in its prudent direction, strong balance sheet, superior plus quality, superior client service, strong corporate administration and effectual corporate civilization. It is even the best trade name in fiscal services in Malaysia. The Public Bank Group focused in its nucleus concern countries of consumer and retail commercial loan.
The Public Bank Group is advancing gross revenues of unit trust financess, wealth direction merchandises, card concern, trade finance, remittals and investment-linked merchandises. The mark market of Public Bank included recognition card holder, stockholder, stakeholder and populace.Requirements of MASB1.The Presentation of Financial Statements ( MASB1 ) provides comprehensive guidelines to the presentation of fiscal statement in Malaysia. The aim of this Standard and in combination with other MASB criterions is to guarantee the direction present fiscal statements which present reasonably the fiscal public presentation, fiscal place and hard currency flows in the endeavor. MASB 1 sets out the BASIC of the presentation of general fiscal statements in Malaysia and provides treatment for fiscal statements.The MASB 1 ‘s demand is the fiscal statement, it should be presented consistence. The consistence states that an endeavor should utilize a similar accounting policy in fixing and describing its fiscal statements.
This is because there are several methods which can be used in fixing the endeavor ‘s fiscal statements.. The application of consistence is of import because it will let users of fiscal statements to do meaningful comparings of fiscal information.
Consequently, this will help them in doing their devising determinations.Besides that, all the fiscal statement should be traveling concern. The fiscal statement of an endeavor is prepared on the premise that the concern is a go oning concern. Besides, an endeavor acquired a edifice to transport on its concern. The value of the edifice that will in the fiscal statements is based on the purchase monetary value of the edifice. In contrast, if the concern is to be closed down or non a traveling concern the value of the edifice will be based on the sum to be received if it was intended for sale.The coverage of important accounting information is known as the application of the materiality construct.
The differentiation between important and undistinguished information depends on the size of the endeavor. The preparer of the fiscal statements need to do certain judgements in finding the significance of information to be reported. These include the nature of the information, sum of an point and effects on the consequences which will be reported. Others than that, the accounting policies, accrual footing of accounting, materiality and aggression, countervailing and comparative information besides as a of import demand in MASB1.Besides, MASB 1 besides requires all the endeavors to supply four statement and relevant notes in their one-year fiscal statement.
However, the first demand of MASB 1 included a balance sheet. The balance sheet provides the user with the informations about available resources every bit good as the claims to those resources However the balance sheet, it is non necessary to do a current or non-current differentiation. But, if non the points are to be presented in order of liquidness.Second, is the income statement. It provides the user with the informations about the profitableness of the endeavor detailing beginnings of gross and the disbursals which cut down net income. For the income statement, the separation of operating or non-operating points is required.
The Standard besides specifies the revelation of certain points in the income statement. However, there are alternate formats are allowed for the screening alterations in equity. The statement may demo merely those recognized additions and losingss.Third, MASB 1 requires presentation of a hard currency flow statement. It shows the beginnings and utilizations of a house ‘s fiscal resources, showing tendencies in the change of its capital construction. And the last is the statement of motion in equity. It is mediates the proprietors ‘ equity subdivision of consecutive balance sheets, demoing what has happened to generated gross.Deductions of MASB1 on companies:YTL Cement BerhadThe fiscal statements of the YTL Cement Berhad of the Group and the Company have been prepared under the historical cost convention and comply with the commissariats of the companies Act, 1965 and applicable MASB approved accounting criterions in Malaysia for entities other than private entities.
The fiscal statements are presented in Ringgit Malaysia on Group ‘s functional and presentation currency. In 2007, the YTL Cement Berhad adopted the relevant new or revised Financial Reporting Standards ( FRS ) . The fiscal statements have been amended as required, in conformity with the relevant transitional commissariats in the several FRSs. The sum-up of new and revised FRS affects the fiscal statement of the Group and Company.However, in 2008, The YTL Cement Berhad countries affecting a higher grade of opinion or complexness, or countries where premises and estimations are significance to the fiscal statement are disclosed. Besides that, MASB has issued in following new or revised Financial Reporting Standards ( FRS ) and IC Interpretations ( IC ) .
The fiscal statements have been amended with the relevant transitional commissariats in the several FRSs. But the above FRSs does non hold important fiscal impact on the Group and the Company. And, the company has non adopted FRS 139 Financial Instruments: Recognition and Measurement which has been issued but non yet effectual. In 2009, the cardinal ingestion of YTL Cement Berhad refering in future and other cardinal beginnings of appraisal uncertainness at the balance sheet day of the month that have a important hazard of doing a material accommodation to the transporting sums of assets and liabilities within the following fiscal twelvemonth.The Store Corporation BerhadThe fiscal statements of The Store Corporation Berhad comply with the commissariats of the Companies Act, 1965 and applicable approved accounting criterions for entities other than private entities issued by the Malayan Accounting Standard Board ( MASB ) . The Group and the Company had adopted all the new revised Financial Reporting Standard ( FRS ) .
But it does non ensue in important impact on the fiscal statement of the Group and of the Company in old ages 2007 and 2008. In 2007, the company has reclassification of investing belongings upon acceptance of FRS140. The chief alterations in accounting policies and effected the ensuing from the acceptance. However in 2008, The Store Corporation Berhad ‘s important accounting policies adopted are consistent with those of the old fiscal twelvemonth except the acceptance of revised FRSs, which are applicable and compulsory to the Group and Company. The Group besides has non opted for the early acceptance of FRSs that applicable to the Group. In 2009, the measuring bases applied in the readying of the fiscal statements of The Store Corporation Berhad include recoverable value, just value, realizable value and costs. Besides, the fiscal statements are presented in Ringgit Malaysia ( RM ) , besides the Company ‘s functional currency. In extra, the new and revised FRSs, Issues Committee Interpretation ( IC ) and Amendments to FRSs are non yet effectual.
So, the Company and the Group have non adopted the new and revised FRSs, and IC Interpretations that have been issued by MASB that are non yet effectual.Public Bank BerhadIn 2007, the fiscal statements of the Public Bank Berhad have been prepared on the historical cost footing, except the liabilities and assets which are stated at just value such as securities available-for-sale, derivative fiscal instruments, securities held-for-trading and investing belongingss. They are disclosed to the fiscal statements and in conformity with applicable approved FRSs issued by the MASB as modified by Bank Negara Malaysia Guidelines and comply with the commissariats of the Companies Act, 1965. Besides, the fiscal statements integrate all the activities related to the Islamic banking concern besides undertaken by the bank. The Islamic banking concern refers to the credence of sedimentations and granting of funding under the rule of Shariah. The fiscal statements are besides presented in Ringgit Malaysia ( RM ) and all the values are rounded to the nearest 1000. Estimated and implicit in premises are reviewed on an on-going footing. A alteration to accounting estimations are recognized in the fiscal statements which is in the period that is revised and in any future periods affected.
In 2008, the Public Bank ‘s Financial Reporting Standards ( FRS ) and IC Interpretations have been issued by the Malayan Accounting Standard Board ( MASB ) as the balance sheet day of the month but are non effectual yet. In this set of fiscal statements, the Group and the Bank have chosen to early adopt FRS 8 Operating Sections. However in 2009, the accounting policies of the Public Bank Berhad adopted by the Group and the Bank are consistent with those adopted in old old ages. The Financial Reporting Standards ( FRS ) , IC Interpretations, Technical Release ( TR ) amendments to FRSs, and Statement of Principle ( SOP ) which have been issued by the Malayan Accounting Standards Board ( MASB ) as of the balance sheet day of the month but are non yet effectual for these fiscal statements.MASB1 conformity and format of revelation.Aim of the MASB 1 Presentation of Financial Statements is to show reasonably one organisation ‘s fiscal place, fiscal public presentation and hard currency flows by one-year footing. Furthermore, the consistence of presentation of the fiscal statement within a company in different twelvemonth is required.
It ‘s besides can be used as a comparative information with other companies.Information to be disclosed in fiscal statements, for illustration Revenue, Results of operating activities, Finance costs, Taxes, Profit & A ; loss from the ordinary activities, Minority involvement, Net net income or loss and etc. Fiscal statements required true and just position and required conformity with readings. Disclosure of dividends per portion and net incomes per portion are to be shown in the fiscal statement. Fiscal statement is needed to include revelation notes and policies.For illustration, balance sheet points are to be presented in order of liquidness, separation of operating and non-operating points are required in income statement.
Furthermore, the criterion references merely recognized additions and losingss that are non reported in income statement, for case, foreign currency interlingual rendition addition and losingss and alterations in just values of fiscal instruments shown in the notes. MASB 1 stated the back uping information in the notes form act as an extra demand to be disclosed in the chief fiscal statements.The Standards conformity with all 3 companies is just presentation and conformity with fiscal coverage criterions. The points shown in the fiscal statements of the organisations must be consistence as for the intent of comparative with each other. The presentation and categorization of points in the fiscal statements should be retained from one period to the following.
The points shown in income statement are ever the same in different companies. There would be Revenue, net income before revenue enhancement, net income after revenue enhancement, stockholders ‘ financess, EPS, DPS, entire assets, entire equity and etc in order to understand the company ‘s fiscal public presentation and place. The information is comparative and dependable. However, each stuff point should be presented individually in the fiscal statement as non to misdirecting the consequence.Although the concern nature of the above said company are non similar, yet the presentation of the fiscal statement as we can see are still the same. There are consists of Income statement, balance sheet, hard currency flows statement and statement of alterations in equity.
The assets and liabilities ; incomes and disbursals must shown individually, there are non let to be countervailing. Comparative information should be disclosed for numerical information with include of narrative when it is to understanding of the current and old period ‘s fiscal statements.In add-on, the coverage period should be in 12 months footing, from the 3 companies supra. As the said companies are listed in Bursa Saham board, audited one-year studies information are really much more dependable.
Similarities and DifferencesThe differences between the YTL ‘s Cement Bhd, The shop Corporation Bhd and Public Bank Bhd are as shown in the statement, as the YTL concern nature is fabricating, they are bring forthing cement so that their PPE ( heavy equipments ) are much higher comparison to the 2 other companies. The Store Corporation Bhd would dwell of high value of stock list ; eventually the Public Bank does n’t demo stock list but highly high value in their securities, loan and hard currency.The similarities of the 3 companies as shown in the fiscal statement are income revenue enhancement, deferred revenue enhancement, gaining per portion, dividend per portion, and their beginnings of income are from different points although the term they are utilizing as gross but in different signifier of incomes.Basically, the companies will hold many types of investings, and they could hold indistinguishable concern related or different. Goodwill is really of import for the company to construct good repute, finally it besides has to province in the fiscal statement.Utility of fiscal statementsFiscal statements serve as the chief method of pass oning fiscal information about a concern entity or an single to outside parties such as Bankss and investors. It summarizes the accounting procedure and provides a tabular matter of history rubrics and sums of money. Fiscal statements stated the fiscal place or fiscal position of a concern or an single every bit good as fiscal alteration at a peculiar clip or during a period of clip.
The basic intent of fiscal statements is to pass on to external and internal parties ‘ information about fiscal determinations that have been made. However, it is besides provide information about the fiscal place, public presentation and hard currency flows of an endeavor at that is utile to broad scope of users in doing economic determination.The fiscal statement will enable internal stakeholders to understand the fiscal place of the endeavor. If the fiscal province of the company is good, the employees would hold more assurance toward the company. This may act upon them to execute better.
For the higher direction officers, they will be able to alter the direction harmonizing to the fiscal province of the company. For illustration, they can cut down the disbursals of the company if the company is confronting losingss. It is besides easier for them to do determination either long-run or short-run when they know the fiscal province of the company. For illustration, if the company is confronting fiscal crises the direction can cut down the figure of the employees. Furthermore, the company can analyse it ain public presentation over the period of clip through fiscal statement analysis.
As for external stakeholders, the fiscal statement would assist them to estimate the fiscal status of the company. They can put more if the company is gaining. The fiscal statement besides assists external stakeholders in foretelling the endeavor ‘s future hard currency flows and in peculiar, the timing and certainty of the coevals of hard currency and hard currency equivalents.
Besides, the external stakeholder like investors, they can acquire adequate thought to make up one’s mind about the investing of their financess in the specific company. Through the fiscal statement, regulative governments like International Accounting Standards Board can guarantee and analysis whether the company is following accounting criterions or non. In extra, the fiscal statements analysis can assist the authorities bureaus to analyse the revenue enhancement due to the company.
Decisions and Recommendations.In decision, the information in the one-year study are really utile for stakeholders. For stockholders, they could mention to the dividend per portion to judge the value of their portion and seek to heighten the portion monetary value. In add-on, the duties of the stockholders are to keep AGMs for the intent to guarantee that the company concern constructions are comply with company jurisprudence.Other stakeholders would be loan creditors, they have to supervise and analyse the fiscal place and statement to command the company fiscal public presentation to avoid extra hazard or to forestall hazardous undertaking. They act as fiscal accountant return chief as in agreement and pay involvement on clip.Customers and the populace as a whole would mention to the one-year studies of the companies to get their portion monetary value. Therefore, dependable and accurate information in fiscal statement are really of import for their investing intent.
Customers merely will cover with honest and company with corporate societal duty.The audited one-year study is required for the investors to pump in the capital and spread out the concern. Therefore, the accounting board create the accounting criterion for the intent of the presentation are applied internationally and indistinguishable, so that even the foreign investors would be able to read and understand the companies state of affairs and fiscal public presentation to do a confirm judgement with the one-year study.The provider of the companies will depend on the fiscal statement in order to make up one’s mind if they want to cover with the related company depending on their fiscal position.
If the fiscal statement shows a positive hard currency flows and a healthy fiscal place. They might hold higher opportunities to see holding a concern relationship with them. Or some are utilizing as a one-year rewriting to reexamine the company fiscal place.Government will besides necessitate an one-year study to guarantee the company is following with all Torahs conscientiously. Government act as a revenue enhancement aggregators to roll up revenue enhancement from them establish on their net income before revenue enhancement and given some disbursals which are revenue enhancement deductible and it ‘s good to their abodes and corporate societal as a whole.