Plasma Berhad (Bhd.) is a public company listed on Main Market of Bursa Malaysia. Following are...

  

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Plasma Berhad (Bhd.) is a public company listed on Main Market of Bursa Malaysia. Following are its business activities: • Manufacture office equipment, home equipment and foods products • Provide advertisement and promotional services for companies • Provide rentals of heavy-duty industry machines and vehicles On the other hand, Orland Sendirian Berhad (Sdn. Bhd.) is a private company and involved in following business activities: • Manufactures plastics for home and industrial use • Manufactures furniture for home and office use • Rental of shop houses for business use Under Malaysia Financial Reporting Act 1997: • Plasma Berhad is required to prepare its financial statements using Malaysian Accounting Standard Board (MASB) approved accounting standards by applying Malaysian Financial Reporting Standard (MFRS) financial reporting framework. • Orland Sdn. Bhd. is required to prepare its financial statements using Malaysian Accounting Standard Board (MASB) approved accounting standards by applying Malaysian Private Entity Reporting Standard (MPERS) financial reporting framework. The financial reporting of companies in Malaysia are also governed by Companies Act 2016, Securities Commission and Bursa Malaysia Listing requirements, respectively. Required: i) Explain the importance of the financial reporting rules and regulations mentioned above to the following Plasma Bhd's and Orland Sdn. Bhd's users of financial statements: a) Shareholders b) Suppliers c) Lenders d) Tax authorities (8 marks) MFRS 15: Revenues from Contracts with Customers and MPERS require Plasma Bhd. and Orland Sdn. Bhd., respectively, to report their sources of revenues. Based on the info given in the question, give TWO explanations for each company, why the revenues info is critical to their shareholders, creditors (ie suppliers that provide credit term) and lenders (eg. bank and bond holders), respectively. Plasma Berhad (Bhd.) is a public company listed on Main Market of Bursa Malaysia. Following are its business activities: • Manufacture office equipment, home equipment and foods products • Provide advertisement and promotional services for companies • Provide rentals of heavy-duty industry machines and vehicles On the other hand, Orland Sendirian Berhad (Sdn. Bhd.) is a private company and involved in following business activities: • Manufactures plastics for home and industrial use • Manufactures furniture for home and office use • Rental of shop houses for business use Under Malaysia Financial Reporting Act 1997: • Plasma Berhad is required to prepare its financial statements using Malaysian Accounting Standard Board (MASB) approved accounting standards by applying Malaysian Financial Reporting Standard (MFRS) financial reporting framework. • Orland Sdn. Bhd. is required to prepare its financial statements using Malaysian Accounting Standard Board (MASB) approved accounting standards by applying Malaysian Private Entity Reporting Standard (MPERS) financial reporting framework. The financial reporting of companies in Malaysia are also governed by Companies Act 2016, Securities Commission and Bursa Malaysia Listing requirements, respectively. Required: i) Explain the importance of the financial reporting rules and regulations mentioned above to the following Plasma Bhd's and Orland Sdn. Bhd's users of financial statements: a) Shareholders b) Suppliers c) Lenders d) Tax authorities (8 marks) MFRS 15: Revenues from Contracts with Customers and MPERS require Plasma Bhd. and Orland Sdn. Bhd., respectively, to report their sources of revenues. Based on the info given in the question, give TWO explanations for each company, why the revenues info is critical to their shareholders, creditors (ie suppliers that provide credit term) and lenders (eg. bank and bond holders), respectively.

Answer rating: 100% (QA)

Step 13 Financial Reporting has the sole purpose to give true and fair view of a business to its stakeholders like shareholders lenders creditors govt tax authorities Step 23 i Importance of financial ... View the full answer