NAME : JASLEEN QISTIENA BINTI ZAINUDDIN

MATRIKS NUMBER : UDE210044

TUTORIAL 1

1. What is accounting? Why accounting is important in daily life?

Accounting is recording their financial transactions and measuring their financial

transactions by individuals and business . Accounting enables the business analyze financial
performance whether loss or profit during a certain period. The process of accounting is
identifying , measuring , recording and communicating the economic events of an
organization business or non-business to provide of the information. The person who in
charge is called an accountant. Therefore, the process of accounting to get more easier to
find out financial information which is can be used in making business decisions to be more
accurate and even the business will be more advanced. This is why accounting is important
in our daily life, if we not involve accounting in our daily life we will face financial problems
for examples we over spend money and no savings for the future or in times of emergency.
To avoid this from happening , we have to start budgeting and managing daily or monthly
spending so that our financial will be balance. With the balance financial also can create a
better future plan In economically unstable times, it’s common for people to assess the
future. The desire is to have enough so you can stop working, pay for your child’s college
tuition, have money for a vacation, a home, or a car. Planning ahead financially, and the
ultimate goal is a healthy financial future. There are a lot of benefits when used accounting
in daily life in addition, we also can become a frugal and consistent how to manage money
in daily or monthly life.

2. What is accounting cycle? Why you need to prepare the accounting cycle?
The accounting cycle is the process of accounting entries starting from the source
documents to the preparation of the income statement and statement of financial position.
The accounting cycle is completed in a specific accounting period either a year, half year or
quarter and will be repeated in the next accounting period. I have to prepare the accounting
cycle to be more specific or non of the event missed from the beginning of the recording
process to the preparation of financial reports are really important. From the each
accounting cycle I can be seen the error or overlooked and also be able to find if I mistakenly
calculated.
3. Who are the users of accounting information? Provide example.
The accounting process provides financial data for a variety of individuals whose objectives
in reviewing the data vary. The three main users of accounting information were previously
identified, Internal Users, External Users, and Government. Each group uses accounting
information differently, and requires that information to be presented differently. Internal
users Accounting supplies managers and owners with significant financial data that is useful
for decision making. This type of accounting in generally referred to as managerial
accounting. External users, Commonly referred to as financial accounting, the financial
history records of a business for use by external entities are used for many purposes.
External users of accounting information belong to six groups; each has different interests in
the company and wants answers to unique questions.

4. Briefly describe the main functions of MIA, BNM, SCM and MASB
The main functions of MIA, BNM, SCM and MASB is known as profession of accounting.
Full name of MIA is Malaysian Institute of accountants, MIA was approved by an act of
parliament and established under the accounting act 1967 as the national accounting body.
MIA’s job is to determine a person’s eligibility for admission as a member, provide training
and education by other institutes or bodies to a person who practices or wishes to practice
the accounting profession and also provide financial or other assistance to members in need
to protect or enhance the welfare of members.
BNM is CENTREL BANK OF MALAYSIA is a statutory body which started operations on 26
January 1959. Bank Negara Malaysia is governed by the Central Bank of Malaysia Act 2009.
The role of Bank Negara Malaysia is to promote monetary and financial stability. This is
aimed at providing a conducive environment for the sustainable growth of the Malaysian
economy.Bank Negara Malaysia’s monetary policy stance is to maintain price stability while
remaining supportive of growth. Bank Negara Malaysia is also responsible for financial
system stability. SCM is Securities Commission Malaysia, the functions of SCM is he
Securities Commission Malaysia (SC) was established on 1 March 1993 under the Securities
Commission Act 1993 (SCA). SCM are a self-funded statutory body entrusted with the
responsibility to regulate and develop the Malaysian capital market. SCM mission is "to
promote and maintain fair, efficient, secure and transparent securities and derivatives
markets; and facilitate the orderly development of an innovative and competitive capital
market.
MASB is Malaysian Accounting Standards Board, The MASB was established under the
Financial Reporting Act 1997 as an independent body to formulate and publish financial
reporting and accounting standards in Malaysia, the task of the MASB is to issue new
accounting standards as valid accounting standards and review or accept existing accounting
standards as valid accounting standards, publish statements of principles for use in the
preparation of financial reports and provide public advisory services where necessary.
5. Why does Malaysia adopt the Malaysian Financial Reporting Standard (MFRS) instead of
the International Financial Reporting Standard (IFRS) itself?

The Malaysian Financial Reporting Standards (MFRS) framework was introduced by the
Malaysian Accounting Standards Board (MASB) and came into effect on 1 January 2012.
It is fully compliant with the International Financial Reporting Standards (IFRS)
framework, which enhances the credibility and transparency of financial reporting in
Malaysia. The adoption of the MFRS framework was a significant milestone for the
capital market. Entities can now assert that their financial statements are in full
compliance with the IFRS. However, the introduction and implementation of major new
standards brings with it its own set of challenges. Back in 2008 when the convergence
plan was announced, the Board launched a roadmap to facilitate a gradual transition to
IFRS. The roadmap maps out a wide range of measures to ensure that Malaysian
financial reporting standards are compliant with IFRS, both in content and timing of
implementation. At that time there were IASB technical announcements that had not
been adopted in the Financial Reporting Standards Framework (FRS). With the issuance
of the Malaysian Financial Reporting Standards Framework (MFRS) in November 2011
for adoption on 1 January 2012, the MASB standards applicable to Entities other than
Private Entities are similar to IFRS in all aspects other than the nomenclature.

6. Why does smaller private entities can choose either to follow MFRS or MPERS?
A private entity is a private company, incorporated under the companies act 1965, Smaller
private entities can choose either to follow MFRS or MPERS because smaller private entities
is not required to prepare or lodge any financial statements under any law administered.
MASB issued a new set of MASB approved standards called the Malaysian Financial
Reporting Standards to the FRS beginning 1 January 2012, with that issue of the MFRS non-
private entities will apply MFRS while private entities may choose either the MFRS or PERS.
With some issue between MPERS and IFRS , on 1 January 2016 the private entities may
choose to apply the MFRS or MPERS to improve financial reporting by the publicsector and
in line with the Government’s Economic Transformation Plan.
7. What is the importance of having professional accounting bodies in Malaysia?
Having a professional accounting bodies in Malaysia is very importance to keep the
country's finances are always in balance. Statutory Bookkeeping and Accounting Services,
prepare a chart of accounts , record all accounting transactions, prepare monthly
statements and analysis reports, compile monthly management financial reports and service
tax returns, prepare statutory financial statements that comply with Financial Reporting
Standards and present reports in currencies other than functional or presentation
currencies. Clearly that having a professional accounting bodies in Malaysia is importance to
balance the financial problems of Finance in Malaysia. Therefore, Malaysia will be more
developed in the future, professional accounting bodies in Malaysia, always concerned
about the finances of the country, they are also one of the easy entities to connect with
other countries.