QUESTION 1 (25 MARKS)

You are a manager who work at finance department of ANZ Corporation in Malaysia. You are interested to analyse the core principles of finance that influence your company's financial figures. Explain any FIVE (5) principles of finance that give significant impacts to your decision making process in order to achieve the desired financial performance for year 2020.

Tips: Choose Any Five

Principles of risk and return. Risk Adverse. Risk Adjusted Investment

Time value of money.

Cash flow principle.

Agency Problem & Corporate Governance.

Profitability and liquidity.

Principles of diversity.

Hedging principle.

QUESTION 2 (25 MARKS)

a) Distinguish between any TWO (2) types of financial information contained in the various financial statements in Malaysian corporation. (10 marks)

b) Explain any FIVE (5) type of valuable information that may be found in the notes to financial statements. (10 marks)

c) Describe a situation in which the information in the notes would be essential to making an informed decision about the value of a company. (5 marks)

Tips:

a.Two Types of Financial Information - State the Components in financial statements.

Profit & Loss Statement - Profitability

Balance SheetStatement - Assets and Liability Position , & shareholders'r fund position

Cash Flows Statement - Liquidity Position & Use of fund

b.Google and find one of the listed company Annual Reports (Gamuda Berhad, Petronas, Maybank Berhad, Public Bank Berhad) and refer to the section on Notes to Account.