FACULTY

OF

BUSINESS

ACCOUNTING THEORY AND PRACTICES ( PAS3363)

GROUP ASSIGNMENT

PREPARED BY : KHAIRUL FADHLI BIN JUMMAIN 4073015622 NORHAZIQAH SHAZLIYANA BT CHE HUSSAIN 4092011831

PREPARED FOR : Madam Aza Azlina Md Kassim

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CONTENTS
CONTENTS PAGE

1.

INTRODUCTION.. .3 Sunway Holding Berhad IOI Corporation Berhad QUESTION 1 .4 Corporate Social Responsibility

2.

3.

QUESTION 2.. ..13 Financial Reporting Standards

4.

QUESTION 3.. .. 15 Public vs. Private Accounting Industry

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5.

REFERENCES & ATTACHMENTS.. ..17

INTRODUCTION
Two public listed companies that we choose for this group assignment are Sunway Holdings Berhad and IOI Corporation Berhad. Both of these two giant companies are playing in the same field of industry, which is construction and property business both in Malaysia and also international. Not only active in doing their growing businesses, they are also very busy with their corporate social responsibility activities and projects. Following are little bit of their corporate profiles.

Sunway Holdings Berhad - From a small tin-mining company established in 1974, Sunway Group has thrived to become one of Malaysias most formidable property-construction groups, with a multitude of established businesses in more than 40 locations worldwide. It's core businesses consist of an Integrated Properties division which is a consolidation of its Property Development, Hospitality, Retail, Leisure and commercial properties in Malaysia as well as overseas. Other business divisions include Construction, Trading & Manufacturing, Quarry, Building Materials, Healthcare, Education and Information Technology.

IOI Corporation Berhad -IOI Group's formation years were associated with real estate when it forayed into property development in 1982 followed by Oil Palm 1|Page

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plantations in 1985. Today, IOI Group is internationally known as a leading global integrated palm oil player with operations stretching the entire palm value chain from seedlings to plantations to crop oil extraction to diverse value-added manufacturing across major continents - serving global markets in more than 65 countries. Close to its home-base in Malaysia, the Group is also prominently known as one of the leading property developer with significant investment holdings of prime real-estates.IOI Group employs more than 30,000 personnel of more than 23 different nationalities in 15 countries.

Q1 : CORPORATE SOCIAL RESPONSIBILITY (CSR)

CSR is defined as the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. After doing some review on these two public companies, we found that they are very concern about giving back or we consider as sharing together some benefits they have gained from their businesses back with the community. Following are their CSR activities and projects done in Malaysia.

Sunway Holding Berhad :

Sunways approach to corporate responsibility is a full-time commitment, with goals, strategies, and accountabilities, just as that of their other businesses. The philosophy business with a heart permeates all our business decisions. With the belief that every corporation is not only the steward of its stakeholders' financial capital but also serves as the steward of human capital, the Group carries out its corporate responsibility programmes as an inherent, inextricable part of the Company. Their corporate responsibility strategy is defined by three key pillars: education, healthcare and external and they define their success in three areas; people, planet, profit. 2|Page

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ENVIRONMENT & POLLUTION PROTECTION The Group is committed to being a sustainable organisation, balancing economic, social and environmental goals while also protecting the needs of future generations.

Environmental Management System The Groups construction division has documented an Environmental Management System which provides foundation elements for effective management and implementation of environmental practices. Trainings for various levels of staff and subcontractors were carried out throughout the year to educate and create further awareness on environmental responsibilities. The Group was accredited ISO 14001 Environmental Management System for Sunway Construction Sdn Bhd. This is an internationally recognised standard for the establishment of an organisations environmental management system. This accreditation further emphasises its commitment to environment in its business.

Recycling Programme The Sunway Group is dedicated in promoting a sustainable green environment for our future generations of human capital. Its recycling programme has been a big hit with both Sunway staff and various community stakeholders since it started in 2003. Temporary recycling facilities and centres are set up on a monthly basis, which now collects up to 500,000 kg of recyclable waste a year, a sizeable achievement to date, relative to the collection of 56,056 kg in its first year of operation. Objectives Reduce paper consumpti Initiatives Usage of e-forms to replace physical forms Use of e-Fax, electronically approved purchas orders are automatically faxed to suppliers Potential Savings Paperless operations Reduce 4000 papers per month 1|Page

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on

Replacement of traditional printers with duplex printers

Reduce paper usage with double sided printing 56% reduction in power usage Reduce from 8 servers to 1 server Reduce unnecessary power usage Reduce the need to travel regularly

Reduce power usage

Replace cathode ray tube (CRT) monitors with LCD Monitors Reduction in number of servers through virtualisation Set Power save mode for desktops and notebooks Adoption of web conferencing solutions through audio and video conferencing Purchase energy saving equipment

EMPLOYEE RELATED The belief in human capital development is deeply embedded within the organisational fabric of the Sunway Group, where all employees are treated as the Groups biggest source of success, resilience, growth and inspiration.

Recruitment Strategy The Groups recruitment strategy is two-fold i.e. by external recruitment and simultaneously by providing career opportunities to existing employees via internal sourcing i.e. promotions, transfers, etc. The Groups participation in career fairs, internship programmes and job shadowing initiatives are amongst the various avenues to promote the brand externally. From within, a rigorous process of identifying and developing potential existing employees creates the pool of internal candidates to fill vacancies across the Group. The Group adopts a more focused effort to bring in young talents through its Institute of Chartered 1|Page

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Accountants in England & Wales (ICAEW) and Association of Chartered Certified Accountants (ACCA) trainee programmes. The Groups management/graduate trainee programmes i.e. Sunway Managerial Advancement for Recruited Talents (SMART) recruits, trains and retains young graduates of excellent academic results and track record of leadership capabilities into the organisation. Coaching Culture and Communication The Group espouses strongly the importance of coaching to communicate and engage with our workforce. All Sunway managers are required to coach and engage with their employees be it to give direction, good and bad feedback or to praise and recognise. Managers and executives with direct reports are trained with coaching skills to embrace a coaching leadership style with their direct reports. Whilst coaching takes on a more direct engagement and communication with employees, other means of communication are also essential to feed the information channel within the Group. The Groups array of established and proven communication platforms and tools include Town-hall meetings, Managers Conferences, e-bulletins, Sunway Portal, plasma insertions, short messaging services (SMS), Hang Loose Nites, etc. Work Life Balance The Group believes that sports and social activities foster closer ties amongst employees thus enabling better rapport and work quality. This led to the formation of the Groups sports club, Kelab Sukan Sunway. Activities made possible through Kelab Sukan Sunway include informative events like lunch talks featuring health and social topics, recreational programmes that allows employees to let their hair down such as sports tournaments, local and overseas vacation trips, car treasure hunts, informal get togethers through the companys Family Day, Annual Dinner and Dance nights and festive charity events. COMMUNITY PROJECT Education For more than thirty years, now Sunway Group has played a crucial role in Malaysian education, bringing quality and affordable higher learning to the community and country. Followings show how they have significantly changed the education landscape, having pioneered and popularized industry-changing developments such as the widely acclaimed twinning programmes in Malaysia. Jeffrey Cheah Foundation The building of their first foundation to make global citizenship stance concrete started with the Sunway Education Trust Fund which was established in 1997 for the purpose of managing and administering its share of proceeds from the institutions for the benefit of present and future students; be it through reinvestment into the institutions or for the disbursement of scholarships and research grants.

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School Restoration and Adoption Programme

The Group has contributed RM12 million to public schools to date. Notable restorations and donations include: SekolahKebangsaan Convent Klang SRK and SMK Bandar Sunway SJK (C) Chee Wen SMJK Yuk Choy, Ipoh SJK (C) GunungHijau, Pusing

NST Read the English Newspaper This program was launched in August 2005 with the aim of bridging the urban-rural divide among student populations with regards to English language acquisition, information access and skills development. Research has shown that students who read a newspaper daily score better grades in English language examinations than those who do not. This is a finding that has been reinforced time and again through surveys carried out at schools that are under the sponsorship program.

Healthcare For healthcare, The Group works with non-governmental organizations such as the National Kidney Foundation and the Malaysia Liver Foundation to raise funds for their programmes; to carry out education-based public forums which serve to keep the public informed on vital health information, among others. Sunway Medical Centres volunteer doctors and nurses do their part for the community by continuously conducting medical camps for the less privileged. Medical Camp In collaboration with Sunway Medical Centre, the Sunway Medical Camp is organized from time to time. It aims to benefit the community and local residents. The Medical Camp provides basic healthcare checks and medical advice for the low-income group, free of charge. The event is fully manned by volunteers, ranging from medical officers, nurses, lab technologists and Sunway Group employees. Free basic medical services such as blood

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pressure checks, cholesterol and diabetes examinations, as well as general counsel from volunteer doctors and dieticians are usually provided. National Kidney Foundation The Group works annually to benefit the National Kidney Foundation through raising funds for NKF LifeCheck Mobile Health Screening Units that are designed to carry out health screenings throughout Malaysia especially targeting rural areas and the underprivileged community.

Malaysian Liver Foundation Sunway works hand in hand with Malaysia Liver Foundation (MLF) to create awareness. Sunway assists to raise funds by holding charity concerts and events for the organization.

Medical public forums Recognising that people need to be well educated on critical health issues; the hospital allocates funds and expert resources to host free forums, which are open to all members of the public. The forums are run voluntarily by the experts and physicians of Sunway Medical Centre since year 2000 in order to provide further education to the masses on serious health issues covering symptoms, diagnoses, prevention and cure. With this, Sunway hopes to promote social empowerment through education and increase public awareness of various health concerns in our society today. To date, over 5,000 have participated in these free educational programmes.

Community Safe City Initiative The Group works with the Royal Malaysian Police, Malaysia Crime Prevention Foundation and the Selangor state government to reduce crime rates and foster community spirit. 800 security personnel that includes 250 Auxiliary Police personnel patrols Bandar Sunway around the clock, and state of the art CCTVs are placed around the city and mobile units are contributed to assist with the efforts of safeguarding the community that stay, eat, work and play in the Sunway Integrated Resort City. Sunway built the first Selangor Tourist Police Service Centre at Sunway Pyramid as one of its 2|Page

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continuous efforts to step up crime prevention efforts in the city. This serves as a one-stop centre to provide quick advice and solutions for tourists visiting Sunway. Furthermore, the Police Service Centre also ensures that all tourists are safeguarded at all times. The centre and the Police Station in Bandar Sunway is equipped with the latest Police Reporting System (PRS) to enable swift response to reports of crime as well as providing assistance when required.

Free shuttle bus As part of its commitment to the residents of Bandar Sunway, two free shuttle buses have been introduced to improve passenger service and satisfaction within the community. Green IT As the worlds accelerating concerns over climate change and the sustainability of Planet Earth has placed a spotlight on businesses and social circles to reduce carbon footprints, the Group aims at making all IT aspects (operational, services and systems configurations) support low energy consumption and paper-less environment.

Greening and Walkability The Group has effectively landscaped Bandar Sunway with green belts, promoting walkability through well-planned walkways and jogging tracks, encouraging citizens to lead healthy lifestyles, while decreasing vehicular air pollution.

IOI Corporation Berhad

IOIs approach on Corporate Responsibility is to strike a Sustainable Balance between the conflicting demands of internal and external stakeholders in their pursuit of profits and growth. Their operating principles on sustainability are reflected in their VISION statement and Code of Business 2|Page

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Conduct since 1995 way before social-environment and global warming concerns took global centre-stage. COMMUNITY PROJECT Education Scholarships Yayasan TSDLSC provides various scholarships and bursaries to outstanding students pursuing degree courses in recognized local institutions of higher learning in disciplines related to the businesses. The fields of studies include agriculture, biotechnology, food science, chemical engineering, mechanical engineering, civil engineering and accountancy. The scholarship is open for application between May to June every year, and advertisements are placed in major local newspapers to notify the public. Young Achievers Award Established in 1999, the Young Achievers Awards are given out annually to outstanding and bright students from rural areas in primary to upper secondary levels that excel in both academic studies and extra-curriculum activities. Student Adoption Programme The Student Adoption Programme aims to provide financial assistance on educational needs to underprivileged children. To date, around 262 students from 58 primary and 20 secondary schools in Peninsular Malaysia and Sabah have been adopted to receive RM800 and a school bag every year until he/she completes primary or secondary school education. 1,789 children from HUMANA kindergartens also benefit from this programme. School Adoption Programme Under this program, selected schools are adopted to benefit from financial support in the upgrade of their facilities and infrastructure. To date, the Yayasan TSDLSC has adopted five secondary schools in or near our oil palm estates in Sabah. Besides these adopted schools, Yayasan TSDLSC has also given donations to more than 20 schools over the years for various purposes.

Community IOI Properties Hope for Change Badminton Charity Programme 2|Page

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As part of its continuous efforts to be a responsible corporate citizen, IOI Properties Berhad is partnering with Michael's Badminton Academy (MBA) to conduct a 10-month badminton charity programme for the underprivileged group starting from March until December 2011. The programme was officially launched by IOI Property Director Dato' David Tan and Director of Michael's Badminton Academy on 16 March 2011 at Michael's Badminton Academy, Bandar PuteriPuchong.

ENVIRONMENTAL & POLLUTION PROTECTION

Earth Month Go Green Campaign IOI as a Group continued its pledge to support earth Hour 2010 and organized an Earth Month Go Green campaign themed Changing the Climate Together with IOI to give greater emphasis on the issues of climate change and global warming.

During the campaign, IOI launched a 3-bin recycle system at its headquarters to promote the 5Rs (Refuse, Repair, Renew, Reuse, Recycle). On top of that, various green activities such as fruit and garbage enzyme making demo, talk by Tzu Chi Foundation, documentary screening, recycling campaign were organised and green tips were disseminated to its employees through various internal communication channels. IOIs business units - Putrajaya Marriott Hotel, Palm Garden Hotel, IOI Mall, IOIs estates, refineries and factories locally and overseas - also supported this group event through various green activities organised at their respective premises.

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Amenities In remote plantations where access to general amenities is limited, IOI estate workers are provided with a complete range of amenities ranging from housing, schools, nurseries, places of worship, community halls, sundry shops, police stations, flood relief centers, sports and recreational facilities such as football fields and basketball courts. At one estate, they even have a 9-hole golf course.

Schoo l Bus

Cl inic

Footbal l Field

Club house

Basketba ll Court

Golf Cours e

Swimmi ng Pool

Police Statio n

Safety and Health Care Occupational safety and health is a key consideration for all IOI employees especially for those in non-office-based environment such as field operation, processing and manufacturing. In such field or processing environment, the IOI invests substantially in occupation safety and health management systems to world class accreditation levels such as OHSAS 18001 standards.

IOI also provides free medical treatment at clinics with x-ray and ambulance facilities for estate workers and neighbouring communities. The Visiting Medical Officer (VMO) visits the labour quarters twice a month to ensure cleanliness and hygiene are maintained. In addition, health programmes and campaigns on pap smear, breast cancer and other healthcare issues are frequently organised for the workers and local communities.

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Q2 : Are they following FRS? Give two examples from the annual report and prove it.
FRS 101- Presentation of Financial Statements Financial Statements of companies comprise Statement of Financial Position, Statement of Comprehensive Income, Statement of Cash Flows, Statement of Changes in Equity (or an equivalent statement) and relevant notes and policies accompanying the financial statements. The objective of this standard is to ensure comparability with the entitys financial statements of previous periods and also comparable with the financial statements of other entities. To achieve the objective of FRS 101, companies have to set out: i. Overall requirements for the presentation of financial statement ii. Guidelines for their structure iii. Minimum requirements for their contents.

After taking a look and do some reviews on the annual report they produced, we found that both of the companies are following FRS 101.All elements are prepared and presented as required by the board.

Company

Components & Pages Statement of Comprehensive Income : 122123

Sunway Holdings Berhad

Statement of Financial Position : 124-125 Statement of Cash Flows : 130-132 Statement of Changes in Equity : 126-129 Notes to the Financial Statement : 133-296

IOI Corporation Berhad

Statement of Comprehensive Income : 100 Statement of Financial Position : 101

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Statement of Cash Flows : 102-103 Statement of Changes in Equity : 104-106 Notes to the Financial Statement : 111-265

FRS 133 - Earning Per Share (EPS) Objective of this Standard is to prescribe principles for the determination and presentation of earnings per share, so as to improve performance comparisons between different entities in the same reporting period and between different reporting periods for the same entity. This standard should apply to the consolidated financial statements of a group with a parent: (i) whose ordinary shares or potential ordinary shares are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets) or; that files, or is in the process of filing, its financial statements with a securities commission or other regulatory organisation for the purpose of issuing ordinary shares in a public market.

ii)

Based on the standard, earning per share can be measure at basic EPS and diluted EPS. As shown in the annual report they produced, zoomed on the earning per share part, we also found that both of the companies are following FRS 133.

Company Sunway Holdings Berhad IOI Corporation Berhad

Basic EPS Page 162 Page 160

Diluted EPS Page 163 Page 160

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Q3 : You are going to graduate this year. You received offer from Security Commission, Deloitte Tousche and Jabatan Akauntan Negara. List down THREE (3) main roles of each body. Provide TWO (2) reasons of accepting AND rejecting from being the permanent staff of these bodies.
Body
i. Security Commission ii. iii. iv.

Main Roles
Ensuring proper conduct of market institutions and licensed person Regulating the take-over and mergers of companies Supervising exchanges, clearing houses and central depositories. Approving authority for corporate bonds issues

i.

Deloitte Tousche

Provide advices to the client in the area such as initial public offering, effectiveness of the internal control, Malaysian and International Financial Reporting Standard and regulatory compliance. ii. Provide clients annual report to stakeholders as a sources of determine the productivity of companies. iii. Provide a complete range of professional business services critical 2|Page

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to clients' success within a complex and changing work environment

i. JabatanAkauntan Negara

To enable a conducive and vibrant economic environment ii. To facilitate growth and competitiveness of the industry and the Private Sector iii. To support the countrys man power needs and to enhance the quality of life of Malaysian citizens.

Reasons of accepting and rejecting from being permanent staff:

Body i.

Accepting By working in SC we can derive considerable satisfaction from working in respected, high profile public agency that looks after public interest. ii. We can also learn and develop our skills to plan, even be ahead of the continuous changing financial environment.

Rejecting

i.

Our responsibility is to protect other investors.

Security Commission

ii. Difficult to ensure a proper conduct of market institutions and licensed persons.

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i.

Deloitte Tousche

By working in Deloitte we can gain tremendous amount of knowledge and experience due to lots of work and also meeting lots of people because we will be traveling often. ii. If we work at least 3 years in accounting field, we can register under MIA to get the title of Charted Accountant. Additional, after working a while at the big 4 and then if you want to change your work, it will be easier for you because market demand for you as an ex worker of big 4 company.

i.

Life of the worker will not be balance. Most of their time will be spent on doing work and less time for family or other social activities.

ii. Very challenging because they need to always be prepared and maintain the competency. Need to always up to date to current issues and standards and must be a fast learner. Otherwise, their service might be terminated due to outdated and incompetency.

i.

JabatanAkaunt an Negara

Public sector and private sector treat their account differently. Public sector use modified cash basis meanwhile private sector use accrual basis and etc. Working in J.A.N.M will give different environment and more excitement. ii. J.A.N.M is under MOF so its mean working in J.A.N.M is working with government. Working with government gives more secure, stable and steady environment.

i.

Lower salary payment if compared to salary if working in private sector with the same qualification and experience.

ii. Gain less experience of conducting global or multi-national companys accounts.

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REFERENCES & ATTACHMENTS

Jane Lazar and Huang ChingChoo, Financial Reporting Standards for Malaysia 3rd edition, McGraw Hill, 2010 RoshayaniArshad, FaizahDarus, ArunMohamad and Dennis Taylor, Financial Accounting And Reporting in Malaysia, Pearson, 2010. http://www.sunway.com.my/ http://www.ioigroup.com/corporateresponsibility/corporate_responsibility.cfm http://www.sc.com.my/ http://www.deloitte.com/view/en_MY/my/index.htm http://www.anm.gov.my/public_html/bm/default/faq02.php http://www.masb.org.my/

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