Accounting and Financial Reporting for CIMB Group Holdings Berhad

Running Head: ACCOUNTING AND FINANCIAL REPORTING
accounting

Accounting and Financial reporting 1
Contents
Introduction................................................................................................................................2
Forms of business.......................................................................................................................2
Types of business ownership.....................................................................................................5
Advantages and disadvantages of business ownerships.............................................................7
Role of accounting function.......................................................................................................8
Conclusion................................................................................................................................10
References................................................................................................................................11

Accounting and Financial reporting 2
Introduction
The process of communicating financial data and facts of a business to its users like
shareholders and managers is known as accountancy. The users uses accounting information
to take better decisions regarding the overall performance of a business. Accounting is a very
dynamic profession as it can constantly change itself as per the needs and requirements of the
users. Each and every type of business uses accounting information in order to conduct their
operations effectively and efficiently (Clarke, 2012).
The three forms of business ownership are sole proprietorship, partnership and company. All
these uses accounting function in their business. Accounting is basically a task of collecting,
identifying recording, summarising and communicating the results of business transactions to
the users (Carey, Knowles & Towers-Clark, 2017). The chosen business sample is:
Name: CIMB Group Holdings Berhad
Location: Malaysia.
Business activities: It provides various types of banking services such as retail banking,
commercial and private banking. Along with this, it is also engaged in wealth and asset
management services, insurance and many more.
This report contains a description and evaluation of the type and shape of the chosen business
ownership. It also explains the role of accounting in that particular business type.
Forms of business
In general, organizations are classified into various types according to their core business
activities. The categories defined are as per the main functions performed by the business
organization. These are:
 Retailing/ Trading/ Merchandising

Accounting and Financial reporting 3
This type of business mainly deals with purchasing the goods and selling them to the
consumers in market. The people involved in such business are known as merchandisers, who
buy different types of goods at a price (cost) and sold the same to the consumers at higher
prices (selling price). Supermarkets, wholesalers, grocery stores are some examples (Dunne,
Lusch & Carver, 2013).
 Manufacturing
The organizations who follows a process of converting raw materials into saleable
finished goods are involved in a business form named as manufacturing. These firms
purchase some products as raw materials and hire workers for assembling them and
converting them into finished products. The finished good is then sold at a price higher
than the total cost of manufacturing. An oil refinery, car manufacturing are some
examples of manufacturing firms (Obi, 2013).
 Services
There are many firms which are engaged in providing services to the customers rather than
dealing with different products. The income earned by this business is in the form of fees or
commission. Such as lawyers charges fees for rendering their legal and consultation services
to the customers (Mudie & Pirrie, 2012).
Talking about Malaysia, CIMB Group Holdings Berhad, is one of the leading universal bank
of Malaysia, operating in ASEAN (Association of Southeast Asian Nations). It also
considered as the largest investment bank in Asia and one of the largest Islamic banks in
world (CIMB. 2018a). The form of business, bank is engaged in, is services. It provides
various services like retail banking, investment banking and Islamic banking, private and
commercial banking. Along with these services, it also deals with wealth management, asset
management, securities services, financing, insurance, sales and trading, transaction banking