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Annual Report Far660
300
Advance Financial Accounting and Reporting 2
FAR660 Annual Reports
Bina Puri Holding
and
ExcelForce MSC Bhd
FAR660 Annual Reports
MUHAMMAD FIRDAUS BIN ABU HASSAN
NURMAZATUL SYAFINA BINTI MAKTAR
NOOR ATIKA BINTI MAZLAN
INTRODUCTION
1) The Project Based Learning required studying the business and economic literature review of two different sectors which are Construction and Technology companies economy in Malaysia
INTRODUCTION
2) Analysing the two different sectors whether there are similarities and differences by adopting the MFRS
3) The voluntary disclosure is focusing on corporate social responsibility and environmental issue
Background of the Companies
Bina Puri Holdings Bhd
Bina Puri Holdings Bhd
This company also has successfully completed projects such as roads and highways, bridges and interchanges, waterworks, land reclamation works, residential and commercial buildings, hotels, hospitals, airports and government complexes. The group has international presence in which it has successfully undertaken projects in Cambodia, China, Brunei Darussalam, United Arabs Emirates, Saudi Arabia, Pakistan, India, Indonesia and Thailand. The latest awards that has been received by this company is Ketha’s KPI Achievement Award, Residential Renovation/Redevelopment Malaysia and Best Company for Investor Relations (Micro Cap) and Best IR Website (Micro Cap).
ExcelForce MSC Berhad
ExcelForce MSC Berhad
ExcelForce MSC Bhd is the first IT Company in Malaysia to provide a total, comprehensive and market proven business solutions for the stock broking industry from front Office to Back Office. In the fourth quarter of 2001, the company gained recognition from the Information Technologies industry as well as the government and obtained the (Multimedia Super Corridor) MSC status. They are now known as Excel Force MSC Berhad after public listing on December 2004. The company would expand its operations in Asia as its medium term goal, as it believes it possesses the necessary expertise to complete regionally. The aim of the company is to provide quality products and services to our valued customers. This company also received an awards such as Microsoft Certified Gold Partner, KPMG Shareholder Values Award 2007 & 2010 and Approved Vendors of Direct Market Derivatives.
Business and Economic literature
Business and Economic literature
Construction sector
Construction sector
Playing a significant role in aggregate economy of the country in term of its contribution to revenue generation, capital formation and employment creation which ultimately support the gross domestic product (GDP) and the socio-economic development of Malaysia. Considering the substantial role of construction sector in economic development of Malaysia, it is necessary for Malaysia government to give due attention and focus on construction sector for qualifying the title of developed nation. The results exhibit that there is a strong correlation between construction sector and economic growth of Malaysia.
Technology Sector
Technology Sector
One of the top performing sectors in Malaysia. The technology sector grew by double digits percentage-wise in the first months of 2012. The country’s remarkable economic performance has attracted attention from technology companies around the world. As the economy moved beyond low labour costs, industrial technology development, research and development and innovation became increasingly critical to continued growth. The authorities are recognising that research and development as well as technological innovations are essential to the Malaysian government’s strategy of sustainable development and towards a knowledge-based economy.
Statutory Requirements
1) MFRS 2 Shared Based Payment
2) MFRS 119 Employment Benefit
3) MFRS 15 Revenue From the Contract
4) MFRS 126 Retirement Plan benefit
MFRS 2
SHARE BASED PAYMENT
MFRS 2
SHARE BASED PAYMENT
An entity shall recognise the goods or services received or acquired in a share-based payment transaction when it obtains the goods or as the services are received. The entity shall recognise a corresponding increase in equity if the goods or services were received in equity settled share-based payment transaction or a liability if the goods or services were acquired in a cash-settled share-based payment transaction. When the goods or services received or acquired in a share-based payment transaction do not qualify for recognition as assets, they shall be recognised as expenses.
Bina Puri Holding Bhd
Bina Puri Holding Bhd
ExcelForce MSC Bhd
The company has disclosed and issued the MFRS 2. However, it will be effective on 1 January 2018
The Group measures the cost of equity settled transactions with employees by reference to the fair value of the equity investments at the date at which they are granted. The estimation of the fair value is dependent on the terms and conditions of the grant. At grant date, the fair value of options granted to employees is recognised as an employee expense, with a corresponding increase in equity, over the period in which the employees become unconditionally entitled to the options.
MFRS 119 EMPLOYEMENT BENEFIT
MFRS 119 EMPLOYEMENT BENEFIT
Employee benefits are all forms of consideration given by an entity in exchange for service rendered by employees or for the termination of employment.
Bina Puri Holdings Bhd
ExcelForce MSC Bhd
Bina Puri Holdings Bhd
Short-term employee benefits are employee benefits (other than termination benefits) that are expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related service.
Short term accumulating compensated absences such as paid annual leave is recognised as an expense when employees render services that increase their entitlement to future compensated absences
Examples are wages, salaries, socials security contributions, annual bonuses, paid annual leave, sick leave and non-monetary benefits.
wages, salaries, social security contributions, paid annual leave, paid sick leave, bonuses and non-monetary benefits are measured on an undiscounted basis.
MFRS 15 Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group or the Company and the revenue can be reliably measured.
MFRS 15 Revenue
Based on annual report on Bina Puri Holdings Bhd (Pg35). The rent...
Based on annual report on Bina Puri Holdings Bhd (Pg35). The rental income is recognized on accrual basis whereas for ExcelForce MSC Bhd (Pg.68), it is recognized on the straight-line basis based on the lease term of an ongoing lease. Other than that, is interest income of both companies are recognized as it accrues, using the effective interest method.
MFRS 126
Retirement Plan Benefit
Retirement benefit plans are arrangements whereby an entity provides benefits for employees on or after termination of service when such benefits contributions towards them, can be determined or estimated in advance of retirement from the provisions of a document or from the entity’s practices.
MFRS 126
Retirement Plan Benefit
Defined contribution plans are retirement benefit plans under which amounts to be paid as retirement benefits are determined by contributions to a fund together with investment earnings thereon.
Bina Puri Holdings Bhd
Bina Puri Holdings Bhd
ExcelForce MSC Bhd
The Company and its subsidiaries incorporated in Malaysia make contributions to a statutory provident fund. The contributions are recognised as a liability after deducting any contributions already paid and as an expense in the period in which the employees render their services.
As required by law, companies in Malaysia make contributes to the Employees Provident Fund (“EPF”), the national defined contribution plan. Some of the Group’s foreign subsidiary companies make contributions to their respective countries statutory pension scheme. Such contributions are recognised as an expense in the profit or loss in the period in which the employees render their services
Statutory Requirements
Contd.
5) MFRS 9 Financial Instrument
6)MFRS 132 Financial Instrument Presentation
7)MFRS139 Financial Instrument: Recognition and Measurement
8) MFRS 7 Financial Instrument Disclosure
MFRS 9 Financial Instruments
FRS 9 establishes principles for classification and measurement of financial assets. These said that principles will override the existing provisions that have been stated in FRS 139 relating to classification and measurement of financial assets. The fair value is the default measurement for all financial assets in IFRS 9. These changes have also resulted in consequential amendments to FRS 132 and FRS 7.
ExcelForce MSC Bhd. and Bina Puri Holdings Bhd. did not yet implement this new FRS. The effective date to be implemented this FRS in on 1st January 2018.
MFRS 132 Financial Instrument Presentation
Presenting financial instruments as liabilities or equity and for offsetting financial assets and financial liabilities. It also applies to the classification of financial instruments, from the perspective of the issuer, into the financial assets, financial liabilities and equity instruments, the classification of related interest, dividends, losses and gains, and the circumstances in which the financial assets and financial liabilities should be offset.
MFRS 132 Financial Instrument Presentation
Both companies do mention about the standard ...
Both companies do mention about the standard in their annual report, however these two companies identify the financial asset and liabilities or equity instrument accordingly in order to present them in in the reports. Thus, can be concluded that both companies are adopted this MFRS 132 Financial instrument presentation. It is because both companies are engage in the industry business and require them to disclose about the financial asset and liabilitytoward the user of financial statement.
MFRS 139
Financial Instrument: Recognition and Measurement
MFRS 139
Financial Instrument: Recognition a...
The objective of MFRS 139 is to establish principles for recognizing and measuring financial asset, financial liabilities and some contract to buy or sell non-financial items.
Recognition and the categories include financial assets at fair val...
Bina Puri Holdings Bhd.
Excel Force MSC Bhd.
Financial instruments are recognised initially at fair value, except for financial instruments not measured at fair value through profit or loss, they are measured at fair value plus transaction costs that are directly attributable to the acquisition or issue of the financial instruments.
Recognition and the categories include financial assets at fair value through profit or loss and loans and receivables and financial liabilities at fair value through profit or loss or other financial liabilities.
Subsequent measurement, the other financial liabilities which it is subsequently measures at amortized cost using the effective interest method. Gain and losses are recognized in profit or loss through the amortization process.
MFRS 7
Financial Instrument Disclosure
MFRS 7
Financial Instrument Disclosure
An entity shall disclose information that enables users of its financial statements to evaluate the significance of financial instruments for its financial position, performance and risks. However, shall be disclosed in financial position or in the notes
Bina Puri Holdings Bhd
Bina Puri Holdings Bhd
ExcelForce MSC Bhd
The Group and the Company seek to manage effectively the various risks namely credit, liquidity, interest rate, and foreign currency risks, to which the Group and the Company are exposed to in their daily operations.
The Group’s financial risk management objective is to optimise value creation for shareholders whilst minimising the potential adverse impact arising from fluctuations in foreign currency exchange and interest rates and the unpredictability of the financial markets
Voluntary Disclosure
Corporate responsibility a concept organization consider the interest of society by taking responsibility for the impact of their activities on customer, suppliers, employees, shareholder, communities and other stakeholder, as well as the environments.
Voluntary Disclosure
There are aspects for corporate social responsibility ...
There are aspects for corporate social responsibility by both company.
1) Community and Humantarian
2) Human Capital
3) Environment in Community
Environmental issues
Environmental issues
Bina Puri had disclosed environmental issues. They ha...
Bina Puri had disclosed environmental issues. They have responsibility to abide with Environmental policies that clarify the requirement to be fulfilled by the company.
1) Wastage issue - ensure wastage work at the site are properly collected and store.
2)Drainage issue - project sites are in good housekeeping condition and clean.
3) Oil drum issue - reallocated into oil storage area while the contaminated soil is cleaned up according to the Environmental Quality Regulations 2005
Financial Analysis of companies
Conclusion
As result, we able to understand more about the comparative study on annual report of two companies which are Bina Puri Holdings and ExcelForce MSC Bhd. Moreover, we manage to identify and clarify the standards that are adopted by the companies. Based on these annual reports. We learn how the financial statements and treatment on each companies.
As a result we have decide to choose.....
EXCELFORCE MSC BERHAD
THANK YOU ! :)