Specialised Financial Accounting : Assignment

RUNNING HEAD: SPECIALISED FINANCIAL ACCOUNTING
ACCOUNTING

Specialised financial accounting 1
Contents
Introduction............................................................................................................... 2
Description of the companies......................................................................................... 2
Public bank Berhad.................................................................................................. 2
CIMB group holdings Berhad...................................................................................... 3
Requirements of MFRS101 and Securities Commission Guidelines..........................................3
Compliance and format of disclosure by the selected banks....................................................6
Comparing with another country................................................................................... 11
Summary................................................................................................................ 13
Conclusion.............................................................................................................. 14
References.............................................................................................................. 16

Specialised financial accounting 2
Introduction
Companies operating in Malaysia follow the standards provided by MASB. The main
objective of such compliance is to give fair representation of the financial position of the
company. There are numerous of standards in the framework of Malaysian Financial
Reporting that are applied by almost each and every company. Out of many, there is one
standard named as MFRS101 Presentation of Financial Statements, generally used for the
preparation of company’s financial documents reflecting the performance highlights. This
standard has certain requirements which are been discussed in the report. Apart from this,
Malaysian companies especially unit trust funds follows the guidelines of Securities
Commission while preparing their financial documents.
The report comprises of the disclosure of requirements of MFRS101 and Securities
Commission Guidelines. It considers the two big Malaysian banks named as CIMB Group
and Public Bank Berhad. The first part deals with the description of the banks and later on the
requirements of the standard and guideline are been discussed. In the later part of the report,
the compliance with the above is been discussed. The report also highlights the comparison
between MFRS and US GAAP, considering the Bank of America as a comparative
corporation. The last part deals with the summary portion containing all the discussion in the
nutshell and followed by the conclusion.
Description of the companies
Public bank Berhad
A financial institution situated in Kuala Lumpur, Malaysia engaged in offering financial
services to the country as well as to the Asia-Pacific region. Currently, the public bank is the
second largest bank of Southeast Asia and was founded back in 1966 by Teh Hong Piow. It
got listed on Malaysian Stock Exchange in 1967. In terms of shareholders’ funds and market

Specialised financial accounting 3
capitalization, it is the largest and second largest bank in Malaysia after Maybank (Public
Bank. 2018). The main activities of the bank include offering variety of financial products
and services like personal and commercial banking, Islamic banking, nominee and trustee
services, investment banking and many more. Talking about the financial highlights, the
operating revenue RM 20,858 million which was more than the revenue of 2016 that was RM
20,103 million. The operating profit of the bank was RM 6,745 in 2016 which increased to
RM 7319 million. Apart from that, the shareholders’ equity and total assets has also risen
during the year (Reuters. 2018).
CIMB group holdings Berhad
It is a universal bank in Malaysia having its headquarters situated at Kuala Lumpur. CIMB
operates in high growth economy in ASEAN and has a wide network of retail branches
across the region. The entities covered by the group are CIMB Bank, CIMB Investment bank
and many more. Concerning the history, it was formed by merging various other banks in the
past. The primary activities of the group includes providing consumer banking services,
wholesale banking, treasury and markets, integrating investment and corporate banking and
making strategic investments and group strategy (Bloomberg. 2018). Main markets covered
by the group are Indonesia, Thailand, Malaysia and Singapore. Taking into account its
financial highlights, the net revenue of the group has increased from RM 3,550,792 to RM
4,410,259. However, overall it has faced a shortfall of income over expenditure worth RM
4,359,008 which is pretty less than the figure reported in 2016. Also the total assets of the
group has been reduced during the year (CIMB. 2018).
Requirements of MFRS101 and Securities Commission Guidelines
Companies operating in Malaysia are required to follows the standards issued by Malaysian
Accounting Standard Board (MASB). Such standards provide the basis for financial reporting