Malaysia Financial Reporting Standard 101 prescribes the footing demand of fiscal statement to do certain comparison both with the fiscal statement of old clip and fiscal statement of other entities.All in all, it provided a overall demand for fiscal statement and act as guidelines for their construction and demand for the content.
There are some demand set by Malaysia Financial Reporting Standard 101 to finish set of fiscal statements.First, addresses the practical issues in the presentation of fiscal statements which are just presentation and conformity with MFRS, neutralizing of assets and liabilities ; income and disbursals, relationship between materiality and collection, make up one’s minding extra line point, subtotals and entire, heading and fortunes that indicate the alterations in comparative information.
Second, the contents and formats for showing line point in few statements for the accounting period as below. The statement included statement of comprehensive income for the twelvemonth, it demoing the net income for the twelvemonth either by nature or by map.
Third, statement of hard currency flow, the hard currency flow statement reports the hard currency generated and used during the accounting period.
Fourth, is the statement of alterations in equity which introduce an entity ‘s entire comprehensive income for the clip. ( net income or loss attention deficit disorder with other comprehensive income for the clip )
Fifth, is the statement of fiscal place. The accounting balance sheet is one of the chief fiscal statements that largely accountants and concern proprietors will utilize. ( The other fiscal statements are the statement of hard currency flows, income statement and statement of shareholders ‘ equity ) The balance sheet in the one-year study besides referred to the statement of fiscal place. It will demo the company assets, liabilities and proprietor equity, most of the clip it used by external user to find the hazard and return and the stableness of the company.
Last but non least are notes, including a sum-up of of import accounting policies and other descriptive notes. An entity shall uncover, in the sum-up of of import accounting policies or other notes, the determinations should be separate from those affecting sentiments, that the direction has prepare in the procedure of utilizing the entity ‘s accounting policies and that it will hold the most major consequence on the sums that acknowledge in the fiscal statements.
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Pacific & A ; Orient Company Background
Pacific and Orient is known as a private limited company when in 1994. It consists of Pacific and Orient Insurance ( P & A ; O Insurance ) , which is one of the largest general insurance companies in Malaysia, and they are officially to name on Main Board of Bursa Malaysia Securities Berhad during the twelvemonth 1995.
After that, Pacific and Orient Berhad has diversified their concern into more countries, which is Information Technology services and fiscal services. These concerns portion the same pool of homo and besides information resources which they can capitalize on in its survey for new concern and investing chances.
Pacific and Orient Berhad focal point on two chief countries of and information engineering ( IT ) and fiscal services. By utilizing this scheme, the group has divided out to develop and construct concerns that put attempt and contribute to the growing of the countries mentioned.
They contributed in general insurance concerns for 30 old ages. Their concern have good growing as they maintain good relationship with clients, agents and bike store proprietors. The group made a of import advancement in the past 2 old ages, from 2008 to 2009 to reorganise its concern focal point,
For P & A ; O Global Techonologies, it is one of the six sub-companies which operate under Pacific and Orient Berhad. Its chief activities are to pay attending of all Information Technology ( IT ) related to the group and other sub-company. It work together with P & A ; O to do certain that the operations can travel swimmingly. This is the factor which can enable POI to increase market portion in this competitory market.
Allianz General Insurance Company Background
Allianz General Insurance Malaysia Berhad is a portion of the Allianz Group which was founded on 5 February 1890 by Carl von Thieme and Wilhelm von Finck in Berlin, but in twentieth century they shifted themselves central offices to Munich, Germany in twelvemonth 1949. In twelvemonth 2001, Allianz had officially stepped pes in Malaysia so it became the commanding stockholder of the Allianz General Insurance Malaysia Berhad. When in twelvemonth 2007, it was transferred to Allianz wholly-owned subordinate. When they completion to reassign, they changed their name to AMB and it became an investing keeping company, with two nucleus concern like and life insurance ( ALIM ) subordinate and general insurance ( AGIC ) .
Allianz General Insurance Company ( AGIC ) is one of the taking general insurance companies in Malaysia and besides has a wide scope of service in personal lines, little to medium concern and big industries hazards. Besides that, they leverage on the bank confidence understanding with the CIMB Bank to accomplish the Bankss over a million client base. ( Allianz Pofile )
Furthermore, Allianz Life Insurance Malaysia ( ALIM ) besides offers a wide scope of life and wellness insurance and besides the investment-linked merchandises for the twelvemonth 2011. Besides that, it besides is one of the fastest turning life insurance companies in Malaysia. They have 12 subdivisions in the Malaysia which are in Kuala Lumpur, Selangor, Seremban, Melaka, Johor, Perak, Penang, Kedah, Sarawak, and Sabah.
Furthermore, their vision is to be the most dependable spouse, and ever presenting in minutes of truth so they can go the prima general insurance companies and the fastest turning life insurance companies in Malaysia. Their mission is Insurance solutions from A – Omega. Besides the vision and mission, they besides have their values which are Customer Focus, Integrity, High Performance Culture, Open Communication and the Social Responsibility.
Last, they aim to separate themselves as the most sure subscriber of fiscal services to suit with the demands of Malaysian. Besides that, they have sees the effect of sustainable growing through the planetary variegation, the decline of complexness, crucially of import employees and value-based direction attack to achieve client satisfaction. ( Allianz Pofile )
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Harmonizing to the MFRS 101 or MASB1, fiscal statements is to supply information about the fiscal place ( balance sheet ) , public presentation ( income statement ) and hard currency flows of an concern that is to assist users to do wise economic determinations. Besides that, fiscal statements besides show the consequence of the direction ‘s stewardship of the resources entrusted to it. A concern wanted to run into these objective, the fiscal statement should supply information on assets, liabilities, equity, income and disbursals and hard currency flow that to help users to foretell the likely result of company hereafter. ( Malayan Financial Reporting Standard 101- Presentation of Financial Statement )
Furthermore, we had done the comparing between 2004 and 2011 one-year studies of two Malayan insurance companies which are Allianz General Insurance Malaysia Berhad and Pacific & A ; Orient Berhad. Harmonizing to our comparing Allianz and Pacific & A ; Orient had follow the criterion that MFRS stated. For illustration, in twelvemonth 2004 the heading of the fiscal statement such as, Balance Sheet as at the terminal of the period, Income Statement for the twelvemonth ended of the period and Cash flow statement for the ended of the period are changed to the Statement of Financial Position as at the terminal of the period, Statement of Comprehensive Income for the terminal period and Statement of Cash flow for the period in the twelvemonth 2011.
Furthermore, fiscal statements should hold just presentation and conformity with the MFRS. The fiscal statement shall show at reasonably the fiscal place, public presentation and hard currency flow of a concern. The just presentation of the fiscal statement are requires the faithful representation of the effects of minutess, status in conformity with the definitions for the assets, liability, income and disbursal that set out in the model. ( Fair presentation and conformity with MFRS ) For illustration, Allianz provide a clear and understand information in their Statement of Financial Position like they separate the assets into two which are non-current assets and current assets compare to the twelvemonth 2004 they merely stated the assets that include the non-current assets and current assets.
Last but non least, the construction and content of the fiscal statement are requires peculiar revelations of the Standard. For illustration, they use the perpendicular format to show the fiscal specifics in all fiscal statement. Besides that, company should expose the information significantly such as the name of the fiscal statement, whether the fiscal statements are an single concern or a group concern, the day of the month of the terminal of the fiscal statements, the currency of the presentation, and the degree of rounding used in showing sums in the fiscal statement. ( Identification of the fiscal statement ) . Last, we had attached the fiscal statement of the two Malaysia insurance companies at the appendices that to turn out our reply.
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A fiscal statement is a study that tells the universe about the public presentation of companies over a specified period of clip either a twelvemonth or quarterly. The users of the fiscal statement can be divided into 2 classs which are internal and external users.
The first external users are public. The populace will hold to be really cognizant and maintain updated to insurance companies ‘ informations to place the companies that are winning the economic competition. With economics fluctuations in this epoch, public have to maintain an oculus on corporate public presentation to measure the company ‘s overall productiveness. By making so, the public ensures whether the economic system is at healthy degrees or rushing down the track. To remain abreast of chief fiscal developments, people tune in to traditional intelligence mercantile establishments and electronic platforms. These besides include telecasting, wireless, concern newspapers and fiscal web sites.
The 2nd external user is Competitors. The economic system is a really competitory land where companies need to look out for merchandise leading and market domination. In order to make these ends, houses review assorted shades of fiscal information. Rivals will reexamine the fiscal statements of their rivals. By making so, a company can distinguish certain countries compared to their rivals and analyze the strength and failings of their rivals. This could assist the insurance company to construct a strategic program against its challengers and expand market portion in countries where they are fighting.
The 3rd external user is Investors. Investors use fiscal statements of a company because they want to analyze the chance of puting in the insurance company. Investors want to do certain they can gain a sensible return on their investing before they really commit to any fiscal resources to the company. Investors are usually really peculiar as they would desire to derive good amount of return and the fiscal statement of the insurance company can convert the investors to put into their company.
The first internal users of fiscal statements are Managers and Owners. Managers and proprietors need to reexamine fiscal statements for a smooth operation of an organisation. They besides need fiscal studies to do concern determinations to supply a wide sight of the fiscal place of an organisation. Fiscal analysis is performed with the information supplied in the fiscal statements. The fiscal statement is so used to explicate contractual footings between the company and other organizations.A Variables of the fiscal statement like the current debt to equity ratio are of import in make up one’s minding the sum of long term capital that would be necessary to be increased. The fiscal statements of other companies can besides supply some investing solutions to different companies. Sometimes it becomes complicated to make up one’s mind the right field in which fiscal resources has to be categorised. In such state of affairss the fiscal statements of other insurances companies provide the appropriate guideline.A
Last internal user is the Board of Directors and the employee of the insurance company itself. It is of import for the employee to maintain updated with the fiscal statement of their company so that they have a clearer image on their companies ‘ fiscal place. This would assist them to help the insurance company to achieve its mission and vision. This fiscal study of the insurance company would be really helpful when the employee has to cover with the clients. They can convert their clients confidently to purchase insurance from their company if they have a good fiscal place. The Board of Directors need fiscal study of their insurance company in order to put strategic waies and ends for their company. Their chief focal point would be to derive every bit much as clients to purchase insurance from their company. By analyzing the fiscal study, they can be after strategically to accomplish their end.