1.

0 FINANCIAL STATEMENT FOR THE YEAR A limited company especially a public limited company needs to prepare two sets of final accounts one for internal use and another for external use. For internal use are for presentation to the companys management (BOD) and those for external use are for filling the Registry of Companies and publication. The Companies Act requires the audited financial statements of the company to be prepared every calendar year, at intervals of not more than fifteen months and to lay before the company at its Annual General Meeting financial statements made up to a date not more than six months before the date of the meeting. Final accounts for both internal and external use consist to the following: a. Trading, Profit and Loss and Appropriation Account; b. Balance Sheet; and c. Cash Flow Statement. (Chapter 4) Section 169 of the Companies Act 1965 lists out Ninth Schedule the information to be disclosed in these two statements. The Ninth Schedule of the Companies Act 1965 and the various Financial Reporting Standards specify the minimum information to be disclosed in the annual financial statements of companies presented to external users. The financial statements that are prepared and presented have to comply with the accounting standards that are in force in Malaysia. The Malaysia Accounting Standards Board (MASB) is now responsible for issuing the standards. At present, the MASB has issued a number of accounting standards called Financial Reporting Standards (FRSs) which are similar to the International Financial Reporting Standards (IFRs) and some of the Malaysia Standards. FRSs are for public entities. Private entities may apply FRSs or Private Entity Reporting Standards (PERs).

1.1 Trading, Profit and Loss and Appropriation Account Financial Reporting Standard 101 - Presentation of Financial Statements deal with the presentation of general purpose financial statement. There is no specific standard format to be adopted for financial report. But it is advisable to adapt to the standard format for external use as set by the Accounting Standards and Companies Act, so that later it can easily be converted into the format for external use. The suggested format is given below:

a. T Format Company Name Trading and Profit and Loss Account for the year ended ____ Notes Opening stock Purchase - Return Outward Carriage inward - Closing stock COGS Gross Profit RM xxx xxx (xxx) xxx xx_ xxx xxx (xx) xxx xxx xxx === Notes Sales - Return Inward RM xxx xx

Less : Expenses eg : Depreciation Salary Discount allowed Carriage outward Utility Loan Interest Debenture Interest Bad Debt Nett profit xx xx xx xx xx xx xx xx xx xxx === xx xx xxx ===

Gross Profit Add : Revenue Receivable Rental xx Receivable discount xx Investment Interest xx

xxx === xxx

Tax Profit after tax

Nett profit

xxx === xx ___ xxx ===

Company Name Profit and Loss Appropriation Account for the year ended ____ Appropriation: Interim dividend - Ordinary share - Preferred share Propose dividend - Ordinary share - Preferred share Reserve transferred Written off good will Retained earning (c/d) Profit after tax Retained earning (b/d) xx xx xx xx xx xx xx xxx === xx xx

___ xxx ===

Balance Sheet As At _____________ Notes RM Fixed Asset Building Vehicle Machine xx xx xx Notes Authorized Share Capital Ordinary Share Preferred Share Issued and Paid Up Capital Investment Goodwill Current Asset Debtors Bank Cash Utility Prepayment xx xx xx xx xx xx Ordinary Share Ordinary Share Share Premium Retained Earning (c/d) General Reserve Current Liability Creditors Accrued Salary Long Term Liability Loan Debenture ___ xxx === xx xx ___ xxx === xx xx xx xx xx xx xx xx xx == RM

b. Statement Format Company Name Income Statement and Appropriation for the year ended ____ Notes Sales - Return Inward RM RM RM xxx xx xxx

Opening stock Purchase - Return Outward Carriage inward - Closing stock COGS Gross Profit Add : Revenue Receivable Rental Receivable discount Investment Interest Less : Expenses eg : Depreciation Salary Discount allowed Carriage outward Utility Loan Interest Debenture Interest Bad Debt Nett profit Tax Profit after tax Retained earning (b/d) Appropriation: Interim dividend - Ordinary share - Preferred share Propose dividend - Ordinary share - Preferred share Reserve transferred Written off good will Retained earning (c/d)

xxx xxx (xxx) xxx xx_ xxx xxx (xx) xxx xxx xx xx xx xxx xx xx xx xx xx xx xx xx_

(xxx) xxx (xx) xx xx xxx

xx xx xx xx xx xx

(xx) xxx ===

Balance Sheet As At _______________ Notes Fixed Asset Building Vehicle Machine Investment Goodwill Current Asset Debtors Bank Cash Utility Prepayment Current Liability Creditors Accrued Salary Working Capital RM RM RM xx xx xx xx xx xxx xx xx xx xx xxx xx xx

xx xx xxx ===

Authorized Share Capital Ordinary Share Preferred Share

xx xx ===

Issued and Paid Up Capital Ordinary Share Ordinary Share Share Premium Retained Earning (c/d) General Reserve Long Term Liability Loan Debenture

xx xx xx xx xx

xx

xx xx xxx ===