Chapter 6 Companies Annual Report (1)

7/31/2019 Chapter 6 Companies Annual Report (1)

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CompaniesAnnualReport


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Policies & Notes to the Account

Financial

Statements

Major reports:

Chairmans

DirectorsAudit

Regulatory and disclosurerequirements

WHAT WILL YOU BE LEARNING?

OBJECTIVES


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Annual Report: What is it?

AnnualReport

A formal annual publication about

companys operations & financialconditions

To inform shareholders about theactivities, performance through various

reports


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Annual Report: What isinside it?

AnnualReport

A formal annual publication about

companys operations & financialconditions

To inform shareholders about theactivities, performance through various

reports

CorporatestructureManagementTeam

ChairmansreportCEOs reportProfile of BODAuditorsreport

AC ReportCorporateGovernanceReportStatement onInternal

ControlNotice of AGM


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Find out.

CorporateGovernan

ceStatemen

t

Chairmans Report

DirectorsReport

InternalControl

Statement

Audit

Committees Report

Independent

AuditorsReport

What is

about?


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Financial Statements..


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Statutory & RegulatoryRequirements..


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Malaysian Financial ReportingStandards (MFRS)

Malaysian

FinancialReportingStandards

(MFRS)

Full convergence with the International

Financial Reporting Standards (IFRS)effective 1 Jan 2012

IFRS are issued by InternationalAccounting Standards Board (IASB)


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IASB issues IFRS to be used

world-wide common set of understandablestandards

MASB issues MFRS to be used in

Malaysia consistent with IFRS (fullconvergence) level playing field with internationalsetups


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There are nine identifiable sections in most Annual Reports. Not all

reports will have all the sections or the same type and level ofinformation. Here are the sections and what to look for in each:

Chairman of the Board LetterShould cover changing conditions, goals to achieve or achieved ormissed, actions taken or not to be taken. Is it well written? Reading

between the lines - what is being apologized for?

Sales and MarketingShould cover what the company sells, how, where and when. Is it clearwhere the company makes most of its money presently? Is itunderstandable? Is the scope of lines, divisions and operations clear?

10 Year Summary of Financial FiguresIs this included? What's the growth of profits and operating income?

Management Discussion and AnalysisIs there a clear discussion of significant financial trends over past two

years? How candid and accurate is it?

Tips for Reading an Annual Report..


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CPA Opinion LetterWritten by the CPA firm as an opinion on the company's financials.The important thing to look for here is what the qualifications are

Financial StatementsCheck sales, profits, R&D spending, inventory and debt levels overtime. Read the footnotes to ferret out other information

Subsidiaries, Brands and Addresses

Where is the headquarters? Is it clear what lines, brandnames thecompany has and what the overseas distribution network is?

List of Directors and OfficersHow many outside vs. inside directors? Are the directors well knownand respected? Are there less than 5 or more than 12 directors?

Stock Price HistoryGeneral trend of price over time: up or down? Which exchange iscompany traded/listed? Stock symbol? Bonus/dividend history?

Source: http://www.zpub.com/sf/arl/arl-read.html
http://www.zpub.com/sf/arl/arl-read.htmlhttp://www.zpub.com/sf/arl/arl-read.html


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Documents

Chapter 6 Companies Annual Report (1)