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ACT 3122 INTERMEDIATE FINANCIAL ACCOUNTING II

Lecturer: Dr. Mazrah Malek Room: A302 Email: mazrah80@gmail.com

ACT 3122 INTERMEDIATE FINANCIAL ACCOUNTING II
www.edmodo.com Code: qvet8z

ACT 3122 INTERMEDIATE FINANCIAL ACCOUNTING II
• Administrative matters
– Course outline – Assessment

• Lecture
– Topic 1 Conceptual Accounting & Financial Reporting Framework in Malaysia

ACT 3122 INTERMEDIATE FINANCIAL ACCOUNTING II
 Issues covered:
– Recognition – Whether the transaction has taken place. e.g. When can a buyer recognise an asset as his?
– Measurement – The amount at which the transaction is to be recorded. e.g. Buy a car costing RM80K & paid RM20K cash & promise to pay the balance later.

Disclosure – Presentation/disclosure of transaction in the financial statements

Conceptual Accounting & Financial Reporting Framework in Malaysia Learning Outcomes:
1.

2.

3.

Understand the nature & components of the conceptual accounting framework Understand the nature & components of the financial reporting framework in Malaysia Know the roles of standard setting body in Malaysia

Conceptual Accounting & Financial Reporting Framework in Malaysia

Question

What will happen if the company can decide for itself how to report in the financial statements?

Conceptual Accounting & Financial Reporting Framework in Malaysia
What is a conceptual framework?  “…a common foundation and basic reasoning on which to consider merits of alternatives…”  …provides a basis for consistent judgments by standard setters, preparers, users, auditors and others involved in financial reporting… This framework applies to all reporting entities including profit & not for profit entities, private & public sector entities.

Conceptual Accounting & Financial Reporting Framework in Malaysia
The conceptual framework is expected to:  Guide the MASB in establishing accounting standards.  Provide a frame of reference for resolving accounting questions in situations where a standard does not exist.  Determine the bounds for judgment in the preparation of FS.  Increase user’s understanding of and confidence in financial reporting.  Enhance comparability

Conceptual Accounting & Financial Reporting Framework in Malaysia Conceptual framework includes:  The objectives of financial reports  The qualitative characteristics that determine the usefulness of information in financial reports  Elements – assets, liabilities, revenues etc.  Recognition, measurement & reporting

Financial Reporting Framework in Malaysia
Financial reporting framework includes:
 

The Institutional Framework The Regulatory Framework Corporate Governance Refer to Handout 1: Financial Reporting Framework in Malaysia