Essay on Financial Statements in Malaysia
Presentation of Financial Statements in Malaysia: A Critical Analysis of MASB 1 and MASB i - 1
1. Introduction
Accounting is often said as the language of business (Lavoie, 1987). As a business language, one of the main functions of an accounting system is to provide information, through periodic reports known as financial statements, regarding the financial position, the results of operations and cash flows of a business entity to assist users of such reports in making decisions. The primary objective of Islamic accounting information according to Adnan and Gaffikin (1997) is to facilitate the users in computing zakat obligation.
Human experience proved that any work done without having clear objectives encounters limitations, conflicts and blurred vision in its implementation (AAOIFI SFA No. 1, 1997). As such it is very important that in the process of developing financial accounting standards, a clear objectives of financial accounting been established to ensure inconsistency in standards development. The purpose of this essay is to discuss the objective of financial accounting which underlies the presentation of financial statements in Malaysia as outline in MASB 1: Presentation of Financial Statements and MASB i – 1: Presentation of Financial Statements of Islamic Financial Institutions. Read more…