One of the major constituents in Malayan Financial Reporting Standard 101 is fiscal statements. The fiscal statements are a structured representation of the fiscal place and fiscal public presentation of an entity. The aim of fiscal statement is to supply information about the fiscal place, fiscal public presentation and hard currency flow of an entity that is utile to a broad scope of users in doing economical determinations. Fiscal statements besides show the consequence of the direction ‘s quality of the resources delegated to it. To run into the aim, fiscal statements supply information about an entity ‘s:
Income and disbursals, including additions and losingss ;
Contributions by and distributions to proprietors in their capacity as proprietors ; and
A complete set of fiscal statements comprises:
A statement of fiscal place as at the terminal of the period ;
A statement of comprehensive income for the period ;
A statement of alterations in equity for the period ;
A statement of hard currency flows for the period ;
Notes, consisting a sum-up of important accounting policies and other explanatory information ; and
A statement of fiscal place as at the beginning of the earliest comparative period when an entity applies an accounting policy retrospectively or do a retrospective restatement of points in its fiscal statements, or when it reclassifies points in its fiscal statements.
An entity may utilize rubrics for the statements other than those used in this criterion.
There are some general characteristics that must be obeys by every fiscal studies harmonizing to MFRS 101.
Fair presentation and conformities with MFRSs
Fiscal statements shall show reasonably the fiscal place, fiscal public presentation and hard currency flow of an entity. Fair presentation requires the faithful representation of the effects of minutess, other events and conditions in conformity with the definitions and acknowledgment standards for assets, liabilities, income and disbursals set out in the MFRSs.
When fixing fiscal statements, direction shall do an appraisal of an entity ‘s ability to go on as a traveling concern. An entity shall fix fiscal statements on a traveling concern footing unless direction either intends to neutralize the entity or to discontinue trading, or has no realistic option but to make so. The entity shall unwrap every uncertainnesss and facts that may do the entity can non fix the fiscal statement with traveling concern.
Accrual footing of accounting
AnA entityA shallA prepareA itsA financialA statements, A exceptA forA cashA flow information, utilizing the accrual footing of accounting. When the accrual footing of accounting is used, an entity recognises points as assets, liabilities, equity, income and disbursals when they satisfy the definitions and acknowledgment standards for those elements in the MFRSs.
Materiality and collection
An entity shall show individually each material category of similar points. An entity shall show individually points of a dissimilar nature or map unless they are immaterial.
An entity shall non countervail assets and liabilities or income and disbursals, unless required or permitted by MFRS.
Frequency of describing
An entity shall show a complete set of fiscal statements at least yearly. When an entity changes the terminal of its coverage period and nowadayss fiscal statements for a period longer or shorter than one twelvemonth, an entity shall unwrap.
An entity shall unwrap comparative information in regard of the old period for all sums reported in the current period ‘s fiscal statements, except when MFRSs permitted or required non to make so. An entity shall include comparative information when it is relevant to an apprehension of the current period ‘s fiscal statements.
Consistency of presentation
An entity shall retain the presentation and categorization of points in the fiscal statements from one period to the following unless it is evident, following a important alteration in the nature of the entity ‘s operations or a reappraisal of its fiscal statements, that another presentation would be more appropriate holding respect to the standards for the choice and application of accounting policies in MFRS 108 or MFRS requires a alteration in presentation.
B ) Explain the background of the company.
Background of Lonpac Insurance Bhd.
Lonpac Insurance Bhd is a entirely owned subordinate of LPI Capital Bhd, which once known as London & A ; Pacific Insurance Company Berhad, and was incorporated in Malaysia on 12 July 1994. It commenced underwriting of general insurance concern after a restructuring program on 1 May 1999. The paid-up capital of the company is RM 200,000,000 comprising of 200,000,000 ordinary portions of RM 1.00 each.
The company operates through 21 subdivisions in Malaysia and a foreign subdivision in Singapore to function the clients better.
In September 2005, the Malayan Rating Corporation Berhad ( MARC ) has reaffirmed the general insurance strength evaluation of Lonpac at “ AA ” , reconfirming its fiscal stableness and dependability in the insurance industry.
In September 2011, the A.M. Best Co. has affirmed the fiscal strength evaluation of “ A- ” and issuer recognition evaluation ( ICR ) of “ A- ” to Lonpac. The evaluation recognized Lonpac ‘s ability to derive market portion while keeping a favourable underwriting public presentation, irrespective of the competitory operating environment in its nucleus markets, viz. Malaysia and Singapore.
Background of Kurnia Insurance
Kurnia Insurans Berhad, was incorporated on 30th December 1978. Back so, it was known by another name, Industrial and Commercial Insurance. Kurnia Insurans Berhad, in its present form and signifier came to be, merely in 1991, when the present proprietors bought the company.
Kurnia Insurans has become one of the most successful general insurance companies in Malaysia. Kurnia Insurans ‘ success is founded on just concern patterns, which protect the legitimate involvements of its policyholders and offers concern chances to its service suppliers.
With entire capitalisation of RM600 million and entire assets transcending RM2 billion, Kurnia Insurans stands as a pillar of the industry, stand foring stableness and strength.
With an one-year turnover in surplus of RM1 billion and an bureau force of 5,500 across the state, Kurnia Insurans besides boasts one of the most extended bureau webs in the industry, represented in practically every town.
With the liberalisation of the Malayan insurance market, Kurnia has undertaken several protective steps in outlook of lifting unchecked competition. One prevailing move is strategizing towards e-commerce and prehending a outstanding place by being the precursor in supplying online insurance services. Kurnia steadfastly believes that e-commerce will convey Kurnia to a higher degree of public presentation and quality of service to its clients, concern spouses and agents in line with its slogan “ Excellence in Service ” .