DIPLOMA IN ACCOUNTING& FINANCE

FA 4023 FINANCIAL ACCOUNTING

APPLICATION

INTAKE: MARCH 2018

NAME STUDENT ID PHONE NO.

CHEE LI YEN 18042903 016-6649156

CHIN MEN YEE 18044099 011-31794486

CHIN SET YEE 18044115 011-31794485

ISABECCA VOO PEY JIA 18047720 017-8993238

OOI KA KEI 18044560 014-9329174

TOH HONG JIAN 18044859 016-9177889

Contents
Introduction 2
International Accounting Standard 3
Ratio between Amcorp Properties Berhad and YTL Land & Development Berhad 10
Analysis of Amcorp Properties Berhad and YTL Land & Development Berhad 14
Conclusion 24
References 27
Introduction
Amcorp Properties Berhad was listed on the Kuala Lumpur since 1972 and it is one of the
leader who foray into London and Japan investment to maintaining a strong position in local
property development. For example, Amcorp is the developer of award winning projects such
as Kayangan Heights in Shah Alam. Meanwhile, Amcorp also has interest in renewable energy.
For example, they are having the award winning as the developer and operator of renewable
energy plant such as its mini-hydro plant in Sg Perting.
However, YTL Land and Development Berhad is a subsidiary company of YTL Corporation
Berhad. Moreover, it is an investment holding company in Malaysia. YTL is engaging in the
investment activities and property development in Malaysia and Singapore. Maenwhile, YTL
also provide services such as involved in management, financial, treasury, property and park
management service as well as management consultancy services (Berhad, 2019).

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International Accounting Standard

standard about income tax which is also called as ‘comprehensive sheet balance
method’. Besides, it is an accounting standard which recognises both cause and effect of current

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in prior years. Thus, after the company minus up the deferred tax and total up the prior year’s

r’s tax. After minus up the deferred tax and the prior year’s income tax,

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for the individual entities, the foreign currency needs to record in the individual entity’s

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Ratio between Amcorp Properties Berhad and YTL Land & Development Berhad
Amcorp Properties YTL Land &
Berhad Development Berhad
Net Profit Margin:
Net Profits after tax = 20,392 = 9,456
Sales 188,225 367,916
= 0.1083 = 0.0257
= 10.83% = 2.57%
Gross Operating Margin:
Sales – Cost of Sales = 188,225 – 132,406 = 367,916 – 264,227
Sales 188,225 367,916
= 0.2966 = 0.2818
= 29.66% = 28.18%
Net Operating Margin:
Net Profit before interest and tax = 32,467 + 16,364 32,758 + 23,349
Sales 188,225 367,916
= 0.2594 = 0.1525
= 25.94% = 15.25%
Return on equity (ROE):
Net Profit after tax = 20,392 9,456
Equity 985,690 880,457
= 0.0207 = 0.0107
= 2.07% = 1.07%
Return on assets (ROA):
Net Profit before interest = 20,392 + 16,364 = 9,456 + 23,349
Total Assets 1,575,346 3,632,809
= 0.0233 = 0.00903
= 2.33% = 0.90%
Return on capital employed
(ROCE):
Net Profit before interest = 20,392 + 16,364 = 9,456 + 23,349
Equity + Long term debt 985,690+263,876 880,457+2,040,953
= 0.0294 = 0.01122

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 = 2.94% = 1.12%
Earnings per share (EPS):
Net Profit after tax = 20,392 = 9,456
Number of shares outstanding 9,130 9,362
= 2.23sen = 1.01sen
Price / Earnings:
Market Price per share = 0.56 = 1.58
EPS 2.23 1.01
= 0.2511sen = 1.188sen

Dividend Yield:
Dividend per share = 0.03 = -
Market Price per share 0.56 1.58
= 0.054sen = -
Total Asset Turnover:
Sales = 188,225 = 367,916
Total Assets 1,575,346 3,632,809
= 0.119 times = 0.101 times
Fixed Asset Turnover:
Sales = 188,225 = 367,916
Fixed Assets 1,153,775 860,136
= 0.163 times = 0.428 times
Inventory Turnover:
Cost of Sales = 132,406 = 264,227
Inventories 21,027 49,929
= 6.297 times = 5.292 times
Receivables Turnover:
Sales = 188,225 = 367,916
Receivables 47,357 21,143
= 3.975 times = 17.401 times
Gearing (Debt/equity ratio):

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Debt = 476,730 = 2,531,225
Equity 966,953 857,123
= 0.493 = 2.953164
Gearing (Total finance):
Debt = 476,730 = 2,531,225
Debt + Equity 476,730+966,953 3,388,348
= 0.330 = 0.747
Interest cover:
Profit before interest and tax = 48,831 = 56,107
Interest expenses 16,364 23,349
= 2.9841 times = 2.402972 times
Dividend cover:
Earnings per share = 2.23 = 1.01
Dividend per share 0.03 -
= 74.333 times = -
Current ratio:
Current assets = 421,571 = 2,772,673
Current liabilities 325,780 711,399
= 1.294:1 = 3.897494:1

Acid test (or quick ratio):

Current assets – Inventories = 421,571-21,027 = 2,772,673-49,929
Current liabilities 325,780 711,399
= 1.2295:1 = 3.827309:1

Days inventory outstanding

Inventories *365 days = 21027 *365 days = 49,929 *365 days
Cost of Sales 132,406 264,227

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 = 57.96 days = 68.97 days
Credit given:
Receivables *365 days = 47,357 *365 days = 21,143 *365 days
Sales 188,225 367,916
= 91.83 days = 20.98 days
Credit obtained:
Trade payables *365 days = 81,718 *365 days = 33,976 *365 days
Cost of sales 132,406 264,227
= 225.27 days = 46.93 days

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shareholder’s equity.
the shareholder’s equity is generates each ringgit of net profit. The return on
equity (ROE) of the Amcorp Properties Berhad is 2.07% while YTL Land & Development
Berhad is 1.07%. The difference of ROE between both companies is 1%. Amcorp Properties
Berhad has higher net income compared to YTL Land & Development Berhad. This is because
most of the tax expense for YTL Land & Development Berhad is spend on the expenses of not
deductible for tax purposes which can refer to Notes 9 (Income Tax Expenses). Share capital
such as ordinary shares are the main component for both companies. The difference of Amcorp
Properties Berhad has Employees Share Scheme (“ESS”) Notes 24 (Share Capital) while YTL
Land & Development Berhad has Employees Share Option Scheme (“ESOS”) Notes 32(Share
Capital). Return on equity (ROE) ratio suggests that Amcorp Properties Berhad is more
efficient and capability in generating profit from its equity shareholders’ investment.

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but the net income of YTL Land & Development Berhad is lower. This indicates that Amcorp
Properties Berhad is control the asset more effectively and more profitable.

The return on capital employed

(ROCE) of the Amcorp Properties Berhad is 2.94% whereas of the YTL Land & Development
Berhad is 1.12%. The difference of ROCE between both companies is 1.82%. The long-term
debt of both companies mostly is borrowings. The long-term debt of YTL Land & Development
Berhad is about 7 times of Amcorp Properties Berhad. This is because the term loan of YTL
Land & Development Berhad expired when year 2019-2022 has occupied the large proportion
of the debt. (refer to Notes27, Borrowings). This might causes the ROCE ratio becomes lower
compared to Amcorp Properties Berhad. Furthermore, the higher ratio of ROCE also indicates
that Amcorp Properties Berhad is more efficient in generating profits from its capital employed.

The earnings per share (EPS) of the Amcorp Properties Berhad is 2.23sen while YTL
Land & Development Berhad is 1.01sen. The difference of EPS between both companies is
1.82%. The earnings per share is calculated based on the profit for the year attributable to owner
and adjusted weighted average number of ordinary shares. The adjusted weighted average
number of ordinary shares of Amcorp Properties Berhad (refer to Notes 39, Earnings per Share)
is lower compared to YTL Land & Development Berhad. Which can refer to Notes 10

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(Earnings per Share). This indicates Amcorp Properties Berhad is more efficient on generating
a significance dividend for the investors.

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 The price per earnings ratio which normally is known as P/E ratio is the ratio for the
company to value of its current share price relative to its per-share earnings (EPS). Investor

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frequently use this ratio to calculate the fair market price value of the company share and
predicting the future value of the share price. This ratio also helps the investor to calculate the
amount of money the investor should put in to the share based on its current earnings. (Institute,
2019) The price per earning for the Amcorp Properties Berhad is 0.2511 while for YTL Land
& Development Berhad is 1.188. The figure we get to calculate the price per earnings is the
market price of the share divide earnings per share, which the share price of both companies
that we get from is the latest share price graph and the earnings per share for Amcorp Properties
Berhad (refer to Notes39, Earning Per Share) while the earning per share for YTL Land &
Development Berhad can refer to Notes10, Earnings Per Share. This shows that the YTL Land
& Development Berhad’s is having more earnings growth compare to Amcorp Properties
Berhad and the share is more valuable compare Amcorp Properties Berhad by having higher
value of price per earnings ratio. The differences of the price per earnings ratio for this two
company is because of YTL Land & Development Berhad has higher share market price which
is 1.20 ringgit, while the Amcorp Properties Berhad is having share market price of 0.56. The
earnings per share also is one of the causes of different price per earnings which the earnings
per share of Amcorp Properties Berhad is 2.23sen while the earnings per share for YTL Land
& Development Berhad is 1.01sen.

Gearing ratio is a group of financial ratios that compare against the company’s equity or debt.

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 Some company also will use this ratio to analyze
the future cash flows and leverage. The gearing ratio for Amcorp Properties Berhad is 0.493
while the gearing ratio for YTL Land & Development Berhad is 2.953. These calculations are
based on the formula of debt over the equity, where we get the debt and equity straight from
Noted 40 (Capital Management). The difference of gearing between this company is majorly,
because the debt of YTL Land & Development Berhad is very huge amount compare to its
equity. Meaning to say, Amcorp Properties Berhad is more secure to downturns in the economy
and business cycle compare to YTL Land & Development Berhad. This is because Amcorp
Properties Berhad has lower debt compare to YTL Land & Development Berhad, so it is more
secure in business operations.

ancial ratio that calculate the relation of the company’s equity and
its debt. It is the measurements of a company’s finance leverage, which it can describes a
company’s financial capability. There is two ways of calculating a company’s ratio, which the

as company’s equity or total finance where the formula is debt dividing equity plus debt. The

Company need to earn more than the

interest to cover the interest and this interest cover would giving investor to justify how safety
and stable a company is based on looking at the coverage of interest with the company’s
earnings. The interest cover for the Amcorp Properties Berhad is 2.98 times while the interest
cover for the YTL Land & Development Berhad is 2.40.These figure is calculated with the
formula of profit before interest and tax over interest expenses, the figure of profit before
interest and tax of both company is based on the statements of profit or loss and other
comprehensive income of both companies, while the interest expenses is based on the Note 36

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(Finance Costs) for Amcorp Properties Berhad for YTL Land & Development Berhadis based
on the Note 5 (Finance Costs). This has shown that the interest expenses of the Amcorp
Properties Berhad is more covered by the company’s profit compare to YTL Land &
Development Berhad. The difference of interest cover between this two companies is because
of the lower interest expenses of Amcorp Properties Berhad while the YTL Land &
Development Berhad is having higher interest expenses base on both company’s finance costs
notes to the financial statement.

Dividend cover is using the calculation on the company’s earnings per share to cover
the dividend that had distributed to the shareholders. This shows the company’s performance

Current ratio is known as the liquidity ratio which measures company’s capacity on

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company’s current assets value base on the statements of financial position from their annual

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 We choose Amcorp Properties Berhad and YTL Land & Development Berhad to
compare in order to choose the best company to invest. The ratio analysis of both companies
can help the investor to evaluate the stock between both companies in order to generate more
profit in the future. There are some different types of ratio that we can compare which are
profitability ratio, price/earnings ratio, dividend yield ratio, asset utilization ratios, long-term
solvency risk ratios and short-term liquidity risk ratios.
Based on the profitability ratio anaylysis, the net profit margin of Amcorp Properties
Berhad is 8.26% which is higher than YTL Land & Development Berhad. This indicates that
Amcorp Properties Berhad is more efficient on control the cost of the property. The gross
operating margin of Amcorp Properties Berhad is 1.48% higher than YTL Land &
Development Berhad. Meaning to say, Amcorp Properties Berhad is more efficiency in
generating gross profit from its sales. The net operating profit margin Amcorp Properties
Berhad is 10.69% higher than YTL Land & Development Berhad. This states that Amcorp
Properties Berhad has strong pricing strategies.
Besides that, the return on equity (ROE) of the Amcorp Properties Berhad is better
compared to YTL Land & Development Berhad, the differentiation between both companies is
1%. This suggest that Amcorp Properties Berhadis more efficient in generating profit from its
equity shareholders’ investment. The return on asset (ROA) of the Amcorp Properties Berhad
is 1.43% higher than YTL Land & Development Berhad. This indicates that Amcorp Properties
Berhad is control the asset more effectively.
Furthermore, the return on capital employed (ROCE) of the Amcorp Properties Berhad
is 1.82% higher than YTL Land & Development Berhad. The higher ratio of ROCE shows that
Amcorp Properties Berhad is more efficient in generating profits from its capital employed.
The earnings per share (EPS) of the Amcorp Properties Berhad is 1.82sen higher than YTL
Land & Development Berhad. It states that Amcorp Properties Berhad is more efficient on
generating a significance dividend for the investors. Thus, we found that all the analysis shows
that Amcorp Properties Berhad has a better profitability compared to YTL Land &
Development Berhad.
For the price per earnings ratio, the Amcorp Properties Berhad is 0.9369sen lower than
YTL Land & Development Berhad. This shows that the YTL Land & Development Berhad is
having more earnings growth compare to Amcorp Properties Berhad and their share is more

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valuable. The dividend yield for Amcorp Properties Berhad is 0.0536sen while YT L Land &
Development Berhad do not issue any dividend. Meaning to say, the investors cannot determine
the cash flow of the shares of YTL Land & Development Berhad.
Based on asset utilisation ratio analysis, the total asset turnover forAmcorp Properties
Berhad is 0.018times lower than YTL Land & Development Berhad. This states that Amcorp
Properties Berhad is more efficiency in using their total assets to generate sales. The fixed asset
turnover of Amcorp properties Berhad is 0.265 times lower than YTL Land & Development
Berhad. This states that YTL Land & Development Berhad having more ability to generate the
net sales from fixed-assets investments is better compared with Amcorp Properties Berhad.
The inventory turnover of Amcorp Properties Berhad is 1.005 times better than YTL
landed and development. We can conclude that the performance of Amcorp Properties Berhad
is more efficient and effective when compared with YTL Land & Development Berhad. The
receivables turnover of Amcorp Properties Berhad is 13.426 times lower than YTL Land &
Development Berhad. This indicates that YTL Land & Development Berhadcan collect back
their debts from trade receivables faster compared with Amcorp Properties Berhad. Most of the
result show that YTL Land & Development Berhadutilized it assets better compared to Amcorp
Properties Berhad.
Based on the Long-term solvency risk ratios, the gearing ratio(debt/equity) for Amcorp
Properties Berhad is lower 2.46 than YTL Land & Development Berhad while the gearing (total
finance) of Amcorp Properties Berhad is lower 0.423 compared to YTL Land & Development
Berhad .Meaning to say, Amcorp Properties Berhad is more secure to downturns in the
economy. The interest cover for the Amcorp Properties Berhad is higher 0.58 times compared
to YTL Land & Development Berhad. This indicates that the interest expenses of the Amcorp
Properties Berhad is more capable to cover by profit.
The dividend cover for the Amcorp Properties Berhad is 74.33 while the company YTL
Land & Development Berhad did not issue any dividend. This states that Amcorp Properties
Berhad have plenty of earnings left to generate the company after paying the dividend to all
the shareholders. Most of the result show thatAmcorp Properties Berhadare more capable to
meet the long-term liability as it has sufficient cash flow.
Based on the short-term liquidity risk ratios, the current ratio of Amcorp Properties
Berhad is 1.294:1 whereas YTL Land & Development Berhad is 3.897:1. This shows that the
YTL Land & Development Berhad is more efficient on fully utilizing their current asset. The
acid test ratio for Amcorp Properties Berhad is 1.230:1 while the acid test ratio YTL Land &
Developent Berhad is 3.827:1. This have proven that YTL Land & Development Berhad is way
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more efficient in handling the short term liabilities.
Besides that, the days inventory outstanding of YTL Land & Development Berhad is
not good as Amcorp Properties Berhad, the different between both companies is 11.01
days.This states that YTL Landed and Development Berhad has a poor performance. The credit
given of Amcorp Properties Berhad is 70.85 days higher than YTL Land & Development
Berhad.We can conclude that YTL Land & Development Berhadcan collect back the debts
from its trade receivable faster. The credit obtained of Amcorp Properties Berhad is 178.34
days higher than YTL Land & Development Berhad. This indicates YTL Land & Development
Berhad will pay back money in a shorter time. Thus, these show that YTL landed and
development is more liquid than Amcorp Properties Berhad.
In Conclusion, we decide to invest into Amcorp Properties Berhad as it has a better
profitability and it has higher ability to cover the interest expense by profit. Besides that,
Amcorp Properties Berhad sharing more earnings with the shareholders since the dividend
yield ratio is higher while the investor of YTL Land & Development Berhad cannot determine
the cash flow as there is no shares has been issued.

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