Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
(UMK)
Course Name:
Question 2:
If I am going to invest in this kind of business, what form of business
organization I would choose?
I would like to choose the partnership business for investing this sort of business because I will
do the business with my friend. The reasons for choosing this form of business are easy to
establish and start-up costs are low, more capital is available for the business, have greater
borrowing capacity, high-caliber employees can be made partners, there is opportunity for
income splitting, an advantage of particular importance due to resultant tax savings, partners
business affairs are private, there is limited external regulation, its easy to change your legal
structure later if circumstances change.
Describe the forms of business organization that available in Malaysia and the
process of incorporation?
There are three (3) different types of business entities to choose from in Malaysia:
1. Sole Proprietorship (also known as Sole Trader)
2. Partnership business entity
3. Limited Company (SDN. BHD. or Sendirian Berhad or BHD. or Berhad)
Incorporation Procedures
1. Application of Name Search
A name search must be conducted to determine whether the proposed name of the company is
available. Refer to Government Gazette No. 716 dated 30 January 1997, Gazette (Amendment)
dated 11 October 2001, Guidelines for Naming A Company and Guidelines for Application of
Company Name. The steps involved are:
(i) Completion and submission of Form 13A CA (Request For Availability Of Name) to SSM;
and
(ii) Payment of a RM30.00 fee for each name applied.
Where the proposed companys name is approved by SSM, it shall be reserved for three months
from the date of approval.
What are the documents involve during incorporation and yearly filing?
Documents for Sole Proprietorship and Partnership
Form - paper filing:
Statement of Registration Sole Proprietorship REG706
Statement of Registration General Partnership REG707
Change
Form - paper filing:
Dissolution or Change of Proprietorship Registration REG720
Dissolution or Change of Partnership Registration REG721
Dissolution
Form - paper filing:
Dissolution or Change of Proprietorship Registration REG720
Dissolution or Change of Partnership Registration REG721
*NOTE: For incorporation of a private company, the articles of association shall contain the
following stipulations.
(i) Restriction on the right to transfer the companys shares;
(ii) Limitation on the number of members to not exceed fifty;
(iii) Prohibition to any invitation to the public to subscribe the shares/debentures of the company;
(iv) Prohibition on public invitation to deposit money with the company.
Form 48A (Statuary Declaration By A Director Or Promoter Before Appointment)
The director or promoter declares under oath that:
He/She is not a bankrupt; and
He/She has not been convicted and imprisoned for any prescribed offences.
Question 3:
Who are the stakeholders of business organization?
If I want to make sure that my business is to be a company society wants to exist, I must
anticipate social change and respond to desires and needs as they evolve. In each unit that has
direct involvement with stakeholders-from sales departments and the Customer Relations Center,
which interact with customers, to purchasing departments, which deal directly with suppliersHonda takes every opportunity to maintain awareness of stakeholder.
Figure: Stakeholders
impact of pollution by businesses on local communities and employees, as well as the impact of
work force reductions on local governments, communities, and employees. If this trend
continues, corporations may find themselves under increasing pressure to make expenditures to
please other stakeholders, resulting in reduced earnings per share that impact the wealth of
shareholders.
Question 4:
Do I need to disseminate information about my business from time to time? If
yes, what kind of information that I have to disclose? In what forms?
The dissemination of the information can be for external users about the financial position of the
company. The finance department of a company generates a variety of financial information that
is helpful in decision making, including:
A profit and loss statement, or statement of financial performance, provides a picture of our car
dealer businesss trading performance over a defined period, such as a month or a whole
financial year. It records sales, expenses, profits or losses, and any tax payments for the period.
On the assets side of the balance sheet:
fixed assets generally longer-term assets like machinery as well as intangible assets
such as intellectual property rights
current assets short-term assets such as stock and cash.
Liabilities are similarly divided into short and longer-term items, including:
current liabilities amounts you owe that are due for payment within one year such as
suppliers bills
long-term liabilities amounts due after more than one year, for example, long-term bank
loans
shareholder funds share capital (amounts paid into the company for shares) and
reserves, including retained profit.
The form of information disclosures can be found in a number of places including the
following:
The company's financial statements including any supplementary schedules and notes (or
footnotes).
Management's Discussion and Analysis that is included in a publicly-traded corporation's
annual report.
Quarterly earnings reports, press releases and other communications.
The first note or footnote in a company's financial statements will disclose the significant
accounting policies such as how and when revenues are recognized, how property is
depreciated, how inventory and income taxes are accounted for, and more.
Other disclosures in the notes to the financial statements include the effects of foreign
currencies, contingent liabilities, leases, related-party transactions, stock options, and
much more.
Who are the parties that interested and why? Please describe?
Financial information helps users to make better financial decisions. Users of financial
information may be both internal and external to the organization.
Internal users (Primary Users) of accounting information include the following:
Management: for analyzing the organization's performance and position and taking
appropriate measures to improve the company results.
Employees: for assessing company's profitability and its consequence on their future
remuneration and job security.
Owners: for analyzing the viability and profitability of their investment and determining
any future course of action.
Accounting information is presented to internal users usually in the form of management
accounts, budgets, forecasts and financial statements.
Creditors: for determining the credit worthiness of the organization. Terms of credit are
set by creditors according to the assessment of their customers' financial health. Creditors
include suppliers as well as lenders of finance such as banks.
Tax Authourities: for determining the credibility of the tax returns filed on behalf of the
company.
Investors: for analyzing the feasibility of investing in the company. Investors want to
make sure they can earn a reasonable return on their investment before they commit any
financial resources to the company.
Customers: for assessing the financial position of its suppliers which is necessary for
them to maintain a stable source of supply in the long term.
Question 5:
Do I think entrepreneurs and managers need knowledge in accounting? Why?
Yes, entrepreneurs and managers need the knowledge of accounting because the importance of
having financial knowledge is the key in becoming a successful entrepreneur. In todays time
you have to learn to be a leader, an entrepreneur, and financially smart. The creative entrepreneur
can be collapsed in his/her business because lack of financial knowledge. Financial
accounting includes the calculations that allow managers to price products and services. This is
important to make sure manager selling and buying at the right price. For example, manager
should have a good understanding of profit margins, because small changes in margins can have
a large impact on profit.
Many small business entrepreneurs who produce accurate accounts, don't know how to then use
those numbers accounts have produced, to carry out financial accounting. On the other hand,
many entrepreneurs who feel confident about their accounting knowledge take it upon
themselves to do their own monthly accounting. The thinking behind this is sound: "keep your
fingertips on the numbers the business is producing".
As a manager, you'll likely supervise lower-level accountants who handle a company's basic
accounting tasks, such as recording income and expenses, tracking tax liabilities and using these
data to prepare income statements, cash flow statements and balance sheets, but in a smaller
firm, you might perform these tasks yourself. A manager will analyze these basic data and make
forecasts, budgets, performance measurements and plans, then present them to senior
management to assist in its operational decision making. On the other hand, owner/entrepreneur
must understand what the accounts department is presenting before him/her about the companys
financial position and statements.
Question 6:
How do I explain Agency Theory with business setup? Say for example ,
Media Prima Berhad and May Bank Berhad.
Agency theory is the relationship between principals and agents in business. Agency theory is
concerned with resolving problems that can exist in agency relationships; that is, between
principals (such as shareholders) and agents of the principals (for example, company executives).
The two problems that agency theory addresses are:
1) the problems that arise when the desires or goals of the principal and agent are in conflict,
and the principal is unable to verify (because it difficult and/or expensive to do so) what
the agent is actually doing;
2) the problems that arise when the principal and agent have different attitudes towards risk.
Because of different risk tolerances, the principal and agent may each be inclined to take
different actions.
In my car dealer business, I may have the agency problem. Suppose my company have account
in Maybank and we have given an instruction to Maybank to collect worthy of RM 5000 but they
have paid RM 4000 then the agency problem occurs and I have the given the order to Media
Prima Berhad for advertising about any promotion in their media house but unfortunately they
could not able to show/produce the advertisement. An agency such as Maybank and Media
Prima Berhad, in general terms, is the relationship between two parties, where one is a principal
such as our car dealer and the other is an agent who represents the principal in transactions with a
third party. Agency relationships occur when I hire the agent to perform a service on the
principals' behalf. Principals commonly delegate decision-making authority to the agents.
Agency problems can arise because of inefficiencies and incomplete information. In accounting,
two important agency relationships are those between stockholders and managers, and
stockholders and creditors.
Revenue
Cost of Goods Sold
Recurring income before interest and taxes from continuing operations Recurring (pretax) income from continuing operations
Pre-tax earnings from continuing operations
Income (or expense) from discontinued operations
Current Assets:
Progress Billings
Inventories
Trade and others receivables
Tax recoverable
Investment securities
Short term deposit
Cash and bank balance
The change in composition of balances arising from inter balance sheet transactions not
included above (e.g. purchase of fixed assets, receipt of bank loan, etc).
Accruals and Prepayments
Receivables and Payables
Change in share capital reserves arising from share capital issues and redemption;
Change in retained earnings as a result of net profit or loss recognized in the income
statement (after adjusting non-cash items) and dividend payments;
Change in long term loans due to receipt or repayment of loans;
Working capital changes as reflected in the increase or decrease in net current assets
recognized in the balance sheet;
Change in non-current assets due to receipts and payments upon the acquisitions and
disposals of assets (i.e. investing activities)
This equation has to balance because everything the firm owns (assets) has to be purchased
with something, either a liability or owner's capital. Assets refer to items like inventory or
accounts receivable. Examples of liabilities are bank loans or accounts payable. Owner's capital
or equity is the investment or capital the owner has in the firm. Another example is business
profit.
The expanded accounting equation, after you consider sales revenue and expenses, is:
Assets = Liabilities + Owner's Equity + Revenue - Expenses Draws
The expanded accounting equation shows the relationship between the income statement and the
balance sheet. The Owner's Equity component of the accounting equation can be broken down
into two parts - revenue and expenses. So far, the accounting equation has focused on the
components of the balance sheet. Now, breaking the owner's equity part of the accounting
equation into revenues and expenses shows the relationship between the balance sheet and the
income statement since revenue and expenses are the key components of the firm's income
statement.
Revenues, also called sales revenues, are what the business earns for providing its product or
service to customers. Expenses are what it costs the business to provide the product or service to
the customers. The relationship between revenues and expenses is simple. If revenues are greater
than expenses, then the business generates a profit. If revenues are less than expenses, then the
business sustains a loss.
The owner or owners of the company can also withdraw a salary or equity from the business. If
the company is incorporated, then that salary may be in the form of dividends paid by the
corporation. However, if the company is small and a sole proprietorship, partnership, or limited
liability company, then the owner or owners will take a draw from the business as their salaries.
ACCA/CIMA/ICAEW/AUDIT NEGRA
ACCA (the Association of Chartered Certified Accountants) is the global body for
professional accountants. They aim to offer business-relevant, first-choice qualifications to
people of application, ability and ambition around the world who seek a rewarding career in
accountancy, finance and management.
The Chartered Institute of Management Accountants (CIMA) is a United Kingdom-based
professional body offering training and qualification in management accountancy and related
subjects, focused on accounting for business; together with ongoing support for members.
The Institute of Chartered Accountants in England and Wales (ICAEW) is the largest
professional accountancy body in Europe. As a world-class professional accountancy body, the
ICAEW provides leadership and practical support to over 134,000 members in 165 countries,
working with government, regulators and industry to maintain the highest standards.
Audit Negara
To Carry Out Audit In A Professional And Independent Manner And To Produce Balanced
Report To The Parliament And State Legislatures Towards Enhancing Good Governance In The
Public Sector
Roles of Audit Negara Malaysia
1.
2.
3.
4.
5.
To prepare quality and timely Audit Reports to Parliament and State Legislatures
To carry out audit activities and prepare reports in an independent and balanced manner
To fulfill the needs and expectations of stakeholders and auditees
To manage audit activities efficiently and effectively
To be a model employer