Professional Documents
Culture Documents
FRAMEWORK
Noor Lela Ahmad
FPE UPSI
Records
Records
information
Relevant
Relevant Communicates
Communicates
that is
Reliable
Reliable
to
tohelp
helpusers
usersmake
make
Comparable better
betterdecisions.
decisions.
Comparable
McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2010
C1
Accounting
Identifying
Select transactions and events
Recording
Input, measure and classify
Communicating
Prepare, analyze and interpret
Relevant
Relevant Affects
Affectsthethedecision
decisionof
of
Information
Information its
itsusers.
users.
Reliable
Reliable Information
Information Is
Istrusted
trustedby
by
users.
users.
Comparable
Comparable Used
Usedin
incomparisons
comparisons
Information across
acrossyears
years&&companies.
companies.
Information
McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2010
Setting Accounting Principles
International Malaysia
The International Accounting Malaysian Accounting Standards
Standards Board (IASB) issues Board (MASB) is established
under the Financial Reporting Act
International Financial 1997 (the Act) as an independent
Reporting Standards (IFRS) authority to develop and issue
that identify preferred accounting and financial
reporting standards.
accounting practices. The Financial Reporting
If IFRS are adopted worldwide, Foundation (FRF), as a trustee
a company can potentially use body, has responsibility for the
oversight of the MASB's
a single set of financial performance, financial and
statements in all financial funding arrangements, and as an
markets. initial source of views for the
MASB on proposed standards and
pronouncements. It has no direct
responsibility with regard to
standard setting.
Malaysian
Malaysian Accounting
Accounting Standards
Standards
Board
Board is
is the
the private
private group
group that
that sets
sets
both
both broad
broad and
and specific
specific principles.
principles.
Now Future
Going-Concern Principle
Reflects assumption that the business
will continue operating instead of
McGraw-Hill/Irwin being closed or sold. © The McGraw-Hill Companies, Inc., 2010
Principles of Accounting
**Proprietorships
Proprietorshipsandandpartnerships
partnershipsthat
thatare
areset
set up
upas
as
limited
limitedliability
liabilitycorporations
corporations(LLC)
(LLC)provide
providelimited
limitedliability.
liability.
Liabilities
Assets & Equity
Creditors’
Creditors’
claims
claims on
on
assets
assets
Taxes
Taxes Wages
Wages
Payable
Payable Payable
Payable
Owner’s
Owner’s
claim
claim on
on
assets
assets
Dividends
Dividends
McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2010
Assets
Assets = Liabilities
Liabilities + Equity
Equity
Common
Common _ Dividends _
Stock
Stock
Dividends
+ Revenues
Revenues Expenses
Expenses
Retained Earnings
Assets
Assets = Liabilities
Liabilities + Equity
Equity
1. Income Statement
2. Statement of Retained Earnings
3. Balance Sheet (Statement of
Financial Position)
4. Statement of Cash Flows
1. RIGHT ATTITUDE
2. RESPECT
3. RESPONSIBILITY