Companies Annual Report

WHAT WILL YOU BE LEARNING?

Regulatory and disclosure requirements

Financial Statements

OBJECTIVES

Major reports: Chairmans Directors Audit

Policies & Notes to the Account

Annual Report: What is it?

A formal annual publication about companys operations & financial conditions

Annual Report

To inform shareholders about the activities, performance through various reports

Annual Report: What is inside it?

A formal annual publication about companys operations & financial conditions

Corporate structure Management Team Chairmans report CEOs report Profile of BOD Auditors report AC Report Corporate Governance Report Statement on Internal Control Notice of AGM

Annual Report

To inform shareholders about the activities, performance through various reports

Find out.

Directors Report
Corporate Governance Statement

Independent Auditors Report

What is about?
Audit Committees Report Chairmans Report

Internal Control Statement

Financial Statements..

Statement of Comprehensive Income

Statement of Financial Position

Statement of Cash Flow

Statement of Changes in Equity Notes to the Financial Statements

Statutory & Regulatory Requirements..

Financial Reporting Act 1997
Securities Industries Regulation 1999

Companies Act 1965

Bursa Malaysia Listing Requirement

Income Tax Act 1967

Malaysian Financial Reporting Standards (MFRS)

Full convergence with the International Financial Reporting Standards (IFRS) effective 1 Jan 2012

Malaysian Financial Reporting Standards (MFRS)

IFRS are issued by International Accounting Standards Board (IASB)

IASB issues IFRS to be used world-wide common set of understandable standards

MASB issues MFRS to be used in Malaysia consistent with IFRS (full convergence) level playing field with international setups

Tips for Reading an Annual Report..

There are nine identifiable sections in most Annual Reports. Not all reports will have all the sections or the same type and level of information. Here are the sections and what to look for in each: Chairman of the Board Letter Should cover changing conditions, goals to achieve or achieved or missed, actions taken or not to be taken. Is it well written? Reading between the lines - what is being apologized for? Sales and Marketing Should cover what the company sells, how, where and when. Is it clear where the company makes most of its money presently? Is it understandable? Is the scope of lines, divisions and operations clear? 10 Year Summary of Financial Figures Is this included? What's the growth of profits and operating income?

Management Discussion and Analysis Is there a clear discussion of significant financial trends over past two years? How candid and accurate is it?

CPA Opinion Letter Written by the CPA firm as an opinion on the company's financials. The important thing to look for here is what the qualifications are Financial Statements Check sales, profits, R&D spending, inventory and debt levels over time. Read the footnotes to ferret out other information Subsidiaries, Brands and Addresses Where is the headquarters? Is it clear what lines, brandnames the company has and what the overseas distribution network is?

List of Directors and Officers How many outside vs. inside directors? Are the directors well known and respected? Are there less than 5 or more than 12 directors?
Stock Price History General trend of price over time: up or down? Which exchange is company traded/listed? Stock symbol? Bonus/dividend history? Source: http://www.zpub.com/sf/arl/arl-read.html

Accounting policies Notes to the Financial Statements

Policies & procedures used by a company in preparing its financial statements About the methods, measurement system deploye

Additional information to explain items in the statements Helps to clarify items such as contingent liabilities, debt, going concern etc..