Financial Reporting

ANSWER ALL QUESTIONS

QUESTION 1

[pic 1]This is a scan of a newspaper report taken from theSun in the SUNBIZ section dated 12 November 2015.

REQUIRED:

Obtain a copy of Perwaja Holdings Bhd’s (PHB) latest financial statements and make an analysis of the truthfulness and accuracy of the newspaper report above. Include in your discussion the following:

1. A definition of the concept of going concern.                                           (3 marks)
2. Implication of a PN17 company.                                                    (7 marks)
3. Corporate governance of the company under study.                                 (10 marks)
4. Auditor’s report.                                                                  (5 marks)
5. Financial statement analysis to assess the performance of the company.        (15 marks)
6. Red flags in financial statements.                                                (10 marks)

(Total: 50 marks)

QUESTION 2

Both the European Union (EU) and the International Accounting Standards Board have been active in seeking to standardise financial reports.

REQUIRED:

Analyse how regulatory framework has affected financial reporting at both the national and international level. Include in your analyses the following:

a.        A description of the UK, US and IASB standard setting bodies.                (10 marks)

b.        A discussion on the arguments for and against standards.                        (10 marks)

c.        Reasons for differences in financial reporting.                                        (10 marks)

d.        The impact on financial reporting of changing to IFRS.                                (10 marks)