GROUP ASSIGNMENT COVERSHEET

Programme DIPLOMA IN POLICING AND INVESTIGATION

Module Code &
AKN 4013 PRINCIPLES OF ACCOUNTING
Title
Assessment (%) 15%
Module Leader MUHAMMAD HAZLY BIN MOHD AMRAN
Subject Collaborator MUHAMMAD HAZLY BIN MOHD AMRAN
Submission Date 07/02/2024 (6A)

N MATRIX STUDENT NAME FIRST SECOND AGREED

O NUMBER MARKER MARKE R MARKS :

1. DPI 2206 0861 YEAP YI ZHI

2. DPI 2206 1020 CHIA CHOON WEI

3. DPI 2206 0775 LIM HAN QIANG

Plagiarism Results: ( Attached )

Submission of this assignment agrees to the

Late Submission :-
following: We will apply a penalty to work that is submitted late and
I understand that the piece of work submitted will be
within three working days (by 12pm) of the published
considered as the final and complete version of my
submission deadline. The mark for your work will be capped
assignment. I understand both the meaning and consequences
at 50%.This means that whatever mark you actually achieve,
of plagiarism and that my work has been appropriately
you will only be awarded a maximum mark of 50%.The best
attributed. I have not knowingly allowed another to copy my
way to avoid any penalty is to get your work in on time.
work.

Comments:

SIGNATURE OF FIRST MARKER: SIGNATURE OF SECOND MARKER:

Name : Name:

Date : Date :
 GROUP ASSIGNMENT DECLARATION
We declare that this assignment is an original work submitted by the following group members who have all
actively made a contribution. We certified no parts of this assignment have been copied from other student’s
work. Any other work of a similar nature has been appropriately referenced in this assignment.

NO MATRIX STUDENT NAME COMMENT/REMAR SIGNATURE

NUMBER K BY LEADER

5 DPI 2206 0861 YEAP YI ZHI

6 DPI 2206 1020 CHIA CHOON WEI

7 DPI 2206 0775 LIM HAN QIANG

I hereby certify that the above information is true and complete.

Group Leader’s Name :
Group Leader’s Signature :
Date :
Introduction

As as we are aware, the fundamental framework that directs the development

and implementation of accounting standards is the accounting conceptual framework.
It offers a set of guidelines and precepts to guarantee the accuracy, dependability, and
applicability of financial reporting. There are no rules in the framework per se.
Instead, it offers the theoretical groundwork for the development of accounting
standards that are applicable to various corporate units and industries.

The following are the primary purposes of the conceptual framework for
financial accounting. Assess the current accounting standards' quality first, then make
sure that the internal reasoning of all papers pertaining to accounting standards is
consistent. Maintain the integrity and rigor of the accounting standards system by
preventing inconsistencies between various standards.

The second is to offer direction for the creation of new accounting standards
and to organizations that define accounting standards. When users raise new
information needs and the market economic situation shifts, accounting standards are
continually updated and enhanced.

Furthermore, it serves a fundamental normative function in directing

accounting procedures in domains devoid of commonly accepted accounting
principles. That is to say, it can serve as a substitute normative document in the face
of novel circumstances and newly emerging economic issues when there are no
pertinent accounting standards to govern the enterprise.
 In conclusion, Western accounting communities initiated the research on the
conceptual framework of financial accounting. Traditional accounting theoretical
concepts have been severely impacted and criticized since the 1970s due to the
economy's continuous development and the market's evolution and innovation. As a
result, it is urgently necessary to establish a system that can adapt to a comprehensive
and normative accounting theoretical framework for the new economic situation.

Objective

The objective of financial reporting is to give external parties—lenders,

creditors, and investors—access to high-quality financial data about a business so they
can evaluate the company's financial performance and position, decide what resources
to provide, and keep an eye on management stewardship. Furthermore, by facilitating
the smooth operation of the capital markets and promoting better resource allocation
and investment decisions, financial reporting seeks to aid in economic decision-
making. Financial reporting needs to be comparable, dependable, relevant, and full in
order to meet these goals. The Conceptual Framework for Financial Reporting also
highlights the need for financial reporting to include data that helps creditors, current
and potential investors, and other users make informed decisions about credit,
investments, and other related economic activities.

Content

1. Qualitative characteristics of accounting information

The qualitative characteristics of accounting information are fundamental

principles that enhance the usefulness and reliability of financial reporting. These
characteristics are crucial in ensuring that financial statements provide relevant and
meaningful information to users.
 First of all, relevance, which as the first key component of qualitative
characteristics, is a quality that can assist people in making financial decisions for
their businesses. To be relevant, accounting information must first have
confirmatory value, which provides knowledge about previous financial events, and
then predictive value, which can anticipate future financial occurrences. For a
business to produce correct accounting information, it must have both predictive and
confirmatory value. Professionals view accounting data as relevant if it offers
insights into historical occurrences that can help forecast future developments, which
should increase profit or assist in resolving any impending financial issues. For
example, if a company's owner wants to invest in a new asset, they can refer to
their previous investment history, which applies to any future investments they
make.

Secondly, reliability, which is the second component in accounting component

that makes accounting information useful for decision-making. In order to make
accurate financial predictions, a company must ensure that its financial information is
verifiable. Verifiability is the process of confirming the accuracy of financial
calculations and data by using multiple independent sources to get comparable
outcomes. This implies that experts and external auditors can evaluate a business's
financial reports and arrive at the same conclusions as the organization's accountants.
When this happens, the information provided by a business is reliable and accurate. If
the information cannot be verified, the corporation is aware that it must revise its
financial report and conduct additional calculations.

Thirdly, comparability, which is also one of the component of qualitative

characteristics in accounting information that enables users to identify similarities and
differences among different entities, periods, or industries. Comparability is an
important aspect of accounting information since it allows professionals to
differentiate and analyse financial reports to make judgement. Comparability is the
process of comparing one financial period to another in order to evaluate a company's
trends and overall financial performance. Accounting techniques like balance sheets,
cash flow statements, and income reports can be used by a business to compare its
financial records.
 Lastly, consistency, which is essential to ensure that accounting policies and
methods are applied consistently over time, promoting reliable comparisons.
Consistency of method throughout your time may be a valuable quality that creates
accounting numbers more useful. Consistent use of accounting principles from one
accounting period to another enhances the utility of monetary statements.

2. Elements in accounting data

In accounting, elements of financial statements are the individual sets of

information that make up the financial statement. It helps in the presentation of the
information that will be included in that particular financial statement. There are
several elements in financial statement and each of them has its own unique set of
information that is important to track for a business.

First of all, assets, which is the lifeblood of any business, encompass tangible
and intangible resources owned by an entity. These include cash, inventory, property,
patents, and more. Assets showcase an entity's economic potential and its capacity to
generate future benefits.

Secondly, liabilities, which represent an entity's financial obligations to

external parties. These can range from loans and accounts payable to accrued
expenses. Understanding liabilities is paramount for assessing an entity's financial
obligations and its ability to meet them.

Thirdly, equity, which signifies the residual interest of the owners in the
entity's assets after deducting liabilities. It represents the stake held by shareholders
and serves as a crucial metric for evaluating the financial health of a company.
 Fourthly, investment by owners. The investments by owners refer to the
capital injected into the business by its owners, either through equity contributions or
additional investments. These funds play a pivotal role in fueling the entity's growth
and operational activities.

Fifthly, distribution to owners. The distribution to owners involves the return

of value to shareholders, typically in the form of dividends. This element reflects the
entity's commitment to sharing profits with its owners and maintaining a balance
between reinvesting for growth and rewarding investors.

Then, comprehensive income, which encompasses all changes in equity during

a specific period, including both net income and other comprehensive items. It
provides a holistic view of an entity's financial performance, considering various
elements that may not directly impact net income.

Furthermore, revenues and expenses. It constitute the core elements of income

statement reporting. Revenues represent income generated from the sale of goods or
services, while expenses encompass the costs incurred in generating that income.
Monitoring these elements is crucial for evaluating an entity's operational efficiency
and profitability.

Lastly, gains and losses. It capture the outcomes of transactions or events

outside the regular business operations. Gains may arise from the sale of assets, while
losses can result from unforeseen events. These elements provide insights into the
entity's financial resilience and adaptability.

3. Accounting assumption

Key accounting assumptions describe the framework and operations of a

business. They provide the recording of commercial transactions structure. If any of
these assumptions are incorrect, it may be required to adjust the financial information
generated by a company and disclosed in its financial statements.
 As you learn accounting, it is critical that you have a fundamental
understanding of these key accounting principles. This isn't just memorising
accounting material for an exam and then forgetting it two days later. These principles
appear frequently in accounting research.

First of all, economic entity assumption. This assumption requires business

owners to maintain personal transactions separate from the business's activity. This
assumption is especially relevant to family-owned and small businesses, which may
find struggle to keep their personal and business finances apart. Keeping business and
personal transactions apart might aid organizations in creating accurate financial
accounts.

Secondly, going concern assumption. It confirms that the company intends to

continue operating. If bankruptcy looks to be approaching, or if the assumption is
incorrect for any other reason, the company must immediately recognize its delayed
expenses. In the event incorrect, it's reasonable to assume that the business plans to
continue operating for the near future.

Furthermore, monetary unit assumption. All financial transactions must be

documented in the same currency according to the monetary unit assumption
principle. It explains why you need to complete your business bookkeeping for
foreign transactions. Furthermore, this fundamental accounting principle also makes
the assumption that money's purchasing power never changes. Putting in another
context, a company's financial reporting do not account for inflation, even if the
company has been around for many years.

Lastly, periodicity, which necessitates that a company's financial reports

display outcomes over a specific period for comparison. In addition, according to this
accounting principle, the actual financial statements must outline the exact period of
time pursuant to consideration for review. This theory explains why your profit and
loss statement covers a variety of dates while your balance sheet always presents data
as of a specific date.
Reference

https://www.indeed.com/career-advice/career-development/qualitative-
characteristics-of-accounting-information

https://studynotesexpert.com/qualitative-characteristics-of-accounting- information/

https://www.indeed.com/career-advice/career-development/what-is-
accounting-assumption

https://www.linkedin.com/pulse/10-basic-accounting-assumptions-basis-
bookkeeping-your-tally
 DIPLOMA AC240/BS210/HM102/PI100/OA220/CS231/MAY2024/AKN4013

ASSIGNMENT 1 RUBRICS

No. Criteria Evaluation/Marks

Marks 0 – Nothing 1 – Unsatisfactory 2 – Satisfactory 3 – Proficient 4 – Exemplary Marks

allocation Presented/ Achieved
Plagiarized

1. MAIN IDEA 20% Nothing Limited focus, Suitable focus, Effective focus, Commendable /4 x 20%
submitted negligible acceptable significant focus, advanced
Clear focus, student demonstration of demonstration of demonstration of demonstration of =
understands task. comprehension of task. comprehension of comprehension of
task. task. task.

2. CONTENT 20% Nothing Minimal presence of Adequate presence of Considerable presence Extensive presence of /4 x 20%
submitted accurate supporting accurate supporting of accurate accurate supporting
Accurate supporting detail/evidence. detail/evidence. detail/evidence. detail/evidence. =
details/evidence.

3. QUALITY, ACCURACY 20% Nothing Information is Information Correct and mostly High quality, correct /4 x 20%
AND RELEVANCE submitted incorrect at times and presented was mostly useful information and useful information
not relevant. correct and useful. presented. presented. =
Information presented is
accurate and of a high quality. Content is rarely Content is relevant to Content is nearly Content is consistently
relevant to the main the main idea some always relevant to relevant to the main
Content relevant to main idea. idea. of the time. the main idea. idea.

4. PRESENTATION OF 10% Nothing Presentation of the Presentation of the Presentation of the Presentation of the /4 x 10%
THE ASSIGNMENT submitted assignment is limited assignment is assignment is assignment is
and not in accordance acceptable. Almost effective. Half of the commendable. All the =
Presentation of the with the requirements half of the requirements laid out requirements laid out
assignment is in accordance requirements laid out were followed. were followed.
with the requirements laid were followed.
out.

5. SUBMISSION TIME 10% Nothing More than 1 week Submission on due date. Submission 3 days Submission a week /4 x 10%
submitted after due date. before due date. before due date.
Submission time given to =
the group

6. COMMITMENT & 20% Not participate Participated in less Participated in less Participated in less Participated in 75% /4 x 20%
in group than 20% of group than 50% but more than 75% but more above group
DIPLOMA AC240/BS210/HM102/PI100/OA220/CS231/MAY2024/AKN4013

PARTICIPATION discussion at meetings. Provided than 20% group than 50% group meetings. Assumed =
all. no leadership. Did meetings. Provided meetings. Provided leadership role as
Commitment & little or no work some leadership. Did leadership when necessary. Did the
participation will be valued assigned by the some of the work asked. Did most of work that was
group. assigned by the the work assigned by assigned by the
by lecturer based on
group. the group. group.
attendance to class
discussion and meeting.

TOTAL MARKS (100%)