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FACULTY OF BUSINESS

ACCOUNTING THEORY AND PRACTICES

( PAS3363)

GROUP ASSIGNMENT

PREPARED BY :

KHAIRUL FADHLI BIN JUMMAIN

4073015622

NORHAZIQAH SHAZLIYANA BT CHE HUSSAIN

4092011831

PREPARED FOR :

Madam Aza Azlina Md Kassim


2/19

ATAP(PAS3363) . 2/2011/2012 . Group Assignment

CONTENTS

CONTENTS

PAGE

1. INTRODUCTION...3

Sunway Holding Berhad

IOI Corporation Berhad

2. QUESTION

1

.4Corporate Social Responsibility

3. QUESTION 2..

..13

Financial Reporting Standards

4. QUESTION 3..

..

15

Public vs. Private Accounting Industry

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5. REFERENCES & ATTACHMENTS..

..17

INTRODUCTION

Two public listed companies that we choose for this group assignment are

Sunway Holdings Berhad and IOI Corporation Berhad. Both of these two giant

companies are playing in the same field of industry, which is construction and

property business both in Malaysia and also international. Not only active in

doing their growing businesses, they are also very busy with their corporate

social responsibility activities and projects. Following are little bit of their

corporate profiles.

Sunway Holdings Berhad - From a small tin-mining company established in

1974, Sunway Group has thrived to become one of

Malaysias most formidable property-construction groups,

with a multitude of established businesses in more than 40

locations worldwide. It's core businesses consist of an

Integrated Properties division which is a consolidation of its

Property Development, Hospitality, Retail, Leisure and

commercial properties in Malaysia as well as overseas.

Other business divisions include Construction, Trading &Manufacturing, Quarry, Building Materials, Healthcare,

Education and Information Technology.

IOI Corporation Berhad -IOI Group's formation years

were associated with real estate when it forayed intoproperty development in 1982 followed by Oil Palm

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plantations in 1985. Today, IOI Group is internationally known as a leading global

integrated palm oil player with operations stretching the entire palm value chain

from seedlings to plantations to crop oil extraction to diverse value-added

manufacturing across major continents - serving global markets in more than 65

countries. Close to its home-base in Malaysia, the Group is also prominently

known as one of the leading property developer with significant investmentholdings of prime real-estates.IOI Group employs more than 30,000 personnel of

more than 23 different nationalities in 15 countries.

Q1 : CORPORATE SOCIAL

RESPONSIBILITY (CSR)

CSR is defined as the continuing commitment by business to behave ethically

and contribute to economic development while improving the quality of life of

the workforce and their families as well as of the local community and society at

large.

After doing some review on these two public companies, we found that they are

very concern about giving back or we consider as sharing together some benefits

they have gained from their businesses back with the community. Following are

their CSR activities and projects done in Malaysia.

Sunway Holding Berhad :

Sunways approach to corporate responsibility is a full-time commitment, with

goals, strategies, and accountabilities, just as that of their other businesses. The

philosophy business with a heart permeates all our business decisions.

With the belief that every corporation is not only the steward of its stakeholders'

financial capital but also serves as the steward of human capital, the Group

carries out its corporate responsibility programmes as an inherent, inextricable

part of the Company. Their corporate responsibility strategy is defined by three

key pillars: education, healthcare and external and they define their success inthree areas; people, planet, profit.

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ENVIRONMENT & POLLUTION PROTECTION

The Group is committed to being a sustainable organisation, balancing economic,social and environmental goals while also protecting the needs of futuregenerations.

Environmental Management System

The Groups construction division has documented an EnvironmentalManagement System which provides foundation elements for effectivemanagement and implementation of environmental practices. Trainings forvarious levels of staff and subcontractors were carried out throughout the year to

educate and create further awareness on environmental responsibilities. TheGroup was accredited ISO 14001 Environmental Management System for SunwayConstruction Sdn Bhd. This is an internationally recognised standard for theestablishment of an organisations environmental management system. Thisaccreditation further emphasises its commitment to environment in its business.

Recycling Programme

The Sunway Group is dedicated in promoting a sustainable green environment forour future generations of human capital. Its recycling programme has been a bighit with both Sunway staff and various community stakeholders since it started in2003. Temporary recycling facilities and centres are set up on a monthly basis,which now collects up to 500,000 kg of recyclable waste a year, a sizeableachievement to date, relative to the collection of 56,056 kg in its first year ofoperation.

Objectives Initiatives Potential Savings

Reduce

paperconsumpti

Usage of e-forms to replace

physical forms

Use of e-Fax, electronically

approved purchas orders areautomatically faxed to suppliers

Paperless

operations

Reduce 4000

papers permonth

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on Replacement of traditional

printers with duplex printers

Reduce paper

usage with

double sided

printing

Reduce

power

usage

Replace cathode ray tube (CRT)monitors with LCD Monitors

Reduction in number of servers

through virtualisation

Set Power save mode for

desktops and notebooks

Adoption of web conferencing

solutions through audio and

video conferencing

Purchase energy saving

equipment

56% reduction inpower usage

Reduce from 8

servers to 1

server

Reduce

unnecessary

power usage

Reduce the need

to travel

regularly

EMPLOYEE RELATED

The belief in human capital development is deeply embedded within theorganisational fabric of the Sunway Group, where all employees are treated asthe Groups biggest source of success, resilience, growth and inspiration.

Recruitment Strategy

The Groups recruitment strategy is two-fold i.e. by external recruitment andsimultaneously by providing career opportunities to existing employees viainternal sourcing i.e. promotions, transfers, etc. The Groups participation incareer fairs, internship programmes and job shadowing initiatives are amongstthe various avenues to promote the brand externally. From within, a rigorousprocess of identifying and developing potential existing employees creates the

pool of internal candidates to fill vacancies across the Group. The Group adopts amore focused effort to bring in young talents through its Institute of Chartered

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Accountants in England & Wales (ICAEW) and Association of Chartered CertifiedAccountants (ACCA) trainee programmes. The Groups management/graduatetrainee programmes i.e. Sunway Managerial Advancement for Recruited Talents(SMART) recruits, trains and retains young graduates of excellent academicresults and track record of leadership capabilities into the organisation.

Coaching Culture and Communication

The Group espouses strongly the importance of coaching to communicate andengage with our workforce. All Sunway managers are required to coach andengage with their employees be it to give direction, good and bad feedback or topraise and recognise. Managers and executives with direct reports are trainedwith coaching skills to embrace a coaching leadership style with their directreports. Whilst coaching takes on a more direct engagement and communicationwith employees, other means of communication are also essential to feed theinformation channel within the Group. The Groups array of established andproven communication platforms and tools include Town-hall meetings,

Managers Conferences, e-bulletins, Sunway Portal, plasma insertions, shortmessaging services (SMS), Hang Loose Nites, etc.

Work Life Balance

The Group believes that sports and social activities foster closer ties amongstemployees thus enabling better rapport and work quality. This led to theformation of the Groups sports club, Kelab Sukan Sunway. Activities madepossible through Kelab Sukan Sunway include informative events like lunch talksfeaturing health and social topics, recreational programmes that allowsemployees to let their hair down such as sports tournaments, local and overseas

vacation trips, car treasure hunts, informal get togethers through the companysFamily Day, Annual Dinner and Dance nights and festive charity events.COMMUNITY PROJECT

Education

For more than thirty years, now Sunway Group has played a crucial role in

Malaysian education, bringing quality and affordable higher learning to the

community and country. Followings show how they have significantly changed the

education landscape, having pioneered and popularized industry-changing

developments such as the widely acclaimed twinning programmes in Malaysia.

Jeffrey Cheah Foundation

The building of their first foundation to make global citizenship stance

concrete started with the Sunway Education Trust Fund which was established

in 1997 for the purpose of managing and administering its share of proceeds

from the institutions for the benefit of present and future students; be it

through reinvestment into the institutions or for the disbursement of

scholarships and research grants.

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School Restoration and Adoption Programme

The Group has contributed RM12 million to public schools to date. Notable

restorations and donations include:

SekolahKebangsaan Convent Klang

SRK and SMK Bandar Sunway SJK (C) Chee Wen

SMJK Yuk Choy, Ipoh

SJK (C) GunungHijau, Pusing

NST Read the English Newspaper

This program was launched in August 2005 with the aim of bridging the

urban-rural divide among student populations with regards to English

language acquisition, information access and skills development. Research

has shown that students who read a newspaper daily score better grades inEnglish language examinations than those who do not. This is a finding that

has been reinforced time and again through surveys carried out at schools

that are under the sponsorship program.

Healthcare

For healthcare, The Group works with non-governmental organizations such as

the National Kidney Foundation and the Malaysia Liver Foundation to raise funds

for their programmes; to carry out education-based public forums which serve to

keep the public informed on vital health information, among others. SunwayMedical Centres volunteer doctors and nurses do their part for the community

by continuously conducting medical camps for the less privileged.

Medical Camp

In collaboration with Sunway Medical Centre, the Sunway Medical Camp is

organized from time to time. It aims to benefit the community and local

residents. The Medical Camp provides basic healthcare checks and medical

advice for the low-income group, free of charge. The event is fully manned

by volunteers, ranging from medical officers, nurses, lab technologists and

Sunway Group employees. Free basic medical services such as blood

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pressure checks, cholesterol and diabetes examinations, as well as general

counsel from volunteer doctors and dieticians are usually provided.

National Kidney Foundation

The Group works annually to benefit the

National Kidney Foundation through raisingfunds for NKF LifeCheck Mobile Health

Screening Units that are designed to carry

out health screenings throughout Malaysia

especially targeting rural areas and the

underprivileged community.

Malaysian Liver Foundation

Sunway works hand in hand with Malaysia Liver Foundation (MLF) to create

awareness. Sunway assists to raise funds by holding charity concerts andevents for the organization.

Medical public forums

Recognising that people need to be well educated on critical health issues;

the hospital allocates funds and expert

resources to host free forums, which are

open to all members of the public. The

forums are run voluntarily by the experts

and physicians of Sunway Medical Centresince year 2000 in order to provide

further education to the masses on

serious health issues covering symptoms,

diagnoses, prevention and cure. With this,

Sunway hopes to promote social

empowerment through education and

increase public awareness of various

health concerns in our society today. To date, over 5,000 have participated

in these free educational programmes.

Community

Safe City Initiative

The Group works with the Royal Malaysian Police, Malaysia Crime Prevention

Foundation and the Selangor state government to reduce crime rates and

foster community spirit. 800 security personnel that includes 250 Auxiliary

Police personnel patrols Bandar Sunway around the clock, and state of the

art CCTVs are placed around the city and mobile units are contributed to

assist with the efforts of safeguarding the community that stay, eat, work

and play in the Sunway Integrated Resort City. Sunway built the firstSelangor Tourist Police Service Centre at Sunway Pyramid as one of its

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continuous efforts to step up crime prevention efforts in the city. This serves

as a one-stop centre to provide quick advice and solutions for tourists visiting

Sunway. Furthermore, the Police Service Centre also ensures that all tourists

are safeguarded at all times. The centre and the Police Station in Bandar

Sunway is equipped with the latest Police Reporting System (PRS) to enable

swift response to reports of crime as well as providing assistance whenrequired.

Free shuttle bus

As part of its commitment to the residents of Bandar Sunway, two free

shuttle buses have been introduced to improve passenger service and

satisfaction within the community.

Green IT

As the worlds accelerating concerns over climate change and thesustainability of Planet Earth has placed a spotlight on businesses and social

circles to reduce carbon footprints, the Group aims at making all IT aspects

(operational, services and systems configurations) support low energy

consumption and paper-less environment.

Greening and Walkability

The Group has effectively landscaped Bandar Sunway with green belts,promoting walkability through well-planned walkways and jogging tracks,

encouraging citizens to lead healthy lifestyles, while decreasing vehicular air

pollution.

IOI Corporation Berhad

IOIs approach on Corporate Responsibility is to strike a Sustainable

Balance between the conflicting demands of internal and external stakeholders

in their pursuit of profits and growth. Their operating principles onsustainability are reflected in their VISION statement and Code of Business

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Conduct since 1995 way before social-environment and global warming

concerns took global centre-stage.

COMMUNITY PROJECT

Education

Scholarships

Yayasan TSDLSC provides various scholarships

and bursaries to outstanding students pursuing

degree courses in recognized local institutions

of higher learning in disciplines related to the

businesses. The fields of studies include

agriculture, biotechnology, food science,

chemical engineering, mechanical engineering,

civil engineering and accountancy. The

scholarship is open for application between

May to June every year, and advertisements are placed in major local

newspapers to notify the public.

Young Achievers Award

Established in 1999, the Young Achievers Awards are given out annually to

outstanding and bright students from rural areas in primary to upper

secondary levels that excel in both academic studies and extra-curriculum

activities.

Student Adoption ProgrammeThe Student Adoption Programme aims to provide financial assistance on

educational needs to underprivileged children. To date, around 262 students

from 58 primary and 20 secondary schools in Peninsular Malaysia and Sabah

have been adopted to receive RM800 and a school bag every year until

he/she completes primary or secondary school education. 1,789 children

from HUMANA kindergartens also benefit from this programme.

School Adoption Programme

Under this program, selected schools are adopted to benefit from financial

support in the upgrade of their facilities and infrastructure. To date, theYayasan TSDLSC has adopted five secondary schools in or near our oil palm

estates in Sabah. Besides these adopted schools, Yayasan TSDLSC has also

given donations to more than 20 schools over the years for various

purposes.

Community

IOI Properties Hope for Change Badminton Charity Programme

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As part of its continuous efforts to be a responsible corporate citizen,

IOI Properties Berhad is partnering with Michael's Badminton Academy (MBA)

to conduct a 10-month badminton charity programme for the underprivileged

group starting from March until December 2011. The programme was

officially launched by IOI Property Director Dato' David Tan and Director ofMichael's Badminton Academy on 16 March 2011 at Michael's Badminton

Academy, Bandar PuteriPuchong.

ENVIRONMENTAL & POLLUTION PROTECTION

Earth Month Go Green Campaign

IOI as a Group continued its pledge to support earth Hour 2010 and

organized an Earth Month Go Green campaign themed Changing the

Climate Together with IOI to give greater emphasis on the issues of climate

change and global warming.

During the campaign, IOI launched a

3-bin recycle system at itsheadquarters to promote the 5Rs

(Refuse, Repair, Renew, Reuse,

Recycle). On top of that, various

green activities such as fruit and

garbage enzyme making demo, talk

by Tzu Chi Foundation, documentary

screening, recycling campaign were

organised and green tips were

disseminated to its employees

through various internal

communication channels. IOIs business units - Putrajaya Marriott Hotel, Palm

Garden Hotel, IOI Mall, IOIs estates, refineries and factories locally and

overseas - also supported this group event through various green activities

organised at their respective premises.

EMPLOYEE RELATED

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Amenities

In remote plantations where access to general amenities is limited, IOI estate

workers are provided with a complete range of amenities ranging from

housing, schools, nurseries, places of worship, community halls, sundry

shops, police stations, flood relief centers, sports and recreational facilities

such as football fields and basketball courts. At one estate, they even have a

9-hole golf course.

Schoo

l Bus

Cl

inic

Footbal

l Field

Club

house

Basketba

ll

Court

Golf

Cours

e

Swimmi

ng

Pool

Police

Statio

n

Safety and Health Care

Occupational safety and health is a key

consideration for all IOI employees especially

for those in non-office-based environment such

as field operation, processing and

manufacturing. In such field or processing

environment, the IOI invests substantially in

occupation safety and health management

systems to world class accreditation levels

such as OHSAS 18001 standards.

IOI also provides free medical treatment at clinics with x-ray and ambulance

facilities for estate workers and neighbouring communities. The Visiting

Medical Officer (VMO) visits the labour quarters twice a month to ensure

cleanliness and hygiene are maintained. In addition, health programmes and

campaigns on pap smear, breast cancer and other healthcare issues are

frequently organised for the workers and local communities.

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Q2 : Are they following FRS? Give two

examples from the annual report

and prove it.

FRS 101- Presentation of Financial Statements

Financial Statements of companies comprise Statement of Financial Position,

Statement of Comprehensive Income, Statement of Cash Flows, Statement of

Changes in Equity (or an equivalent statement) and relevant notes and policies

accompanying the financial statements.

The objective of this standard is to ensure comparability with the entitysfinancial statements of previous periods and also comparable with the financial

statements of other entities.

To achieve the objective of FRS 101, companies have to set out:

i. Overall requirements for the presentation of financial statement

ii. Guidelines for their structure

iii. Minimum requirements for their contents.

After taking a look and do some reviews on the annual report they produced, we

found that both of the companies are following FRS 101.All elements are

prepared and presented as required by the board.

Company Components & Pages

Sunway Holdings

Berhad

Statement of Comprehensive Income : 122-

123

Statement of Financial Position : 124-125

Statement of Cash Flows : 130-132

Statement of Changes in Equity : 126-129

Notes to the Financial Statement : 133-296

IOI Corporation Berhad Statement of Comprehensive Income : 100

Statement of Financial Position : 101

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Statement of Cash Flows : 102-103

Statement of Changes in Equity : 104-106

Notes to the Financial Statement : 111-265

FRS 133 - Earning Per Share (EPS)

Objective of this Standard is to prescribe principles for the determination and

presentation of earnings per share, so as to improve performance comparisons

between different entities in the same reporting period and between different

reporting periods for the same entity.

This standard should apply to the consolidated financial statements of a group

with a parent:

(i) whose ordinary shares or potential ordinary shares are traded in a public

market (a domestic or foreign stock exchange or an over-the-counter

market, including local and regional markets) or;

ii) that files, or is in the process of filing, its financial statements with a

securities commission or other regulatory organisation for the purpose ofissuing ordinary shares in a public market.

Based on the standard, earning per share can be measure at basic EPS and

diluted EPS.

As shown in the annual report they produced, zoomed on the earning per share

part, we also found that both of the companies are following FRS 133.

Company Basic EPS Diluted EPS

Sunway Holdings

BerhadPage 162 Page 163

IOI Corporation Berhad Page 160 Page 160

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Q3 : You are going to graduate this year. You

received offer from Security Commission,

Deloitte Tousche and Jabatan AkauntanNegara. List down THREE (3) main roles of

each body. Provide TWO (2) reasons of

accepting AND rejecting from being the

permanent staff of these bodies.

Body Main Roles

Security Commission

i. Ensuring proper conduct of market

institutions and licensed person

ii. Regulating the take-over and

mergers of companies

iii. Supervising exchanges, clearing

houses and central depositories.

iv. Approving authority for corporate

bonds issues

Deloitte Tousche

i. Provide advices to the client in the

area such as initial public offering,

effectiveness of the internal control,

Malaysian and International Financial

Reporting Standard and regulatory

compliance.

ii. Provide clients annual report to

stakeholders as a sources of determine

the productivity of companies.

iii. Provide a complete range ofprofessional business services critical

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to clients' success within a complex

and changing work environment

JabatanAkauntan Negara

i. To enable a conducive and vibranteconomic environment

ii. To facilitate growth and

competitiveness of the industry and

the Private Sector

iii. To support the countrys man power

needs and to enhance the quality of

life of Malaysian citizens.

Reasons of accepting and rejecting from being permanent staff:

Body Accepting Rejecting

Security

Commission

i. By working in SC we can

derive considerable

satisfaction from working in

respected, high profile public

agency that looks after public

interest.

ii. We can also learn and develop

our skills to plan, even be

ahead of the continuous

changing financial

environment.

i. Our responsibility is to

protect other investors.

ii. Difficult to ensure a

proper conduct of

market institutions and

licensed persons.

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Deloitte

Tousche

i. By working in Deloitte we can

gain tremendous amount of

knowledge and experience due

to lots of work and also

meeting lots of people

because we will be traveling

often.

ii. If we work at least 3 years in

accounting field, we can

register under MIA to get the

title of Charted Accountant.

Additional, after working a

while at the big 4 and then if

you want to change your work,

it will be easier for youbecause market demand for

you as an ex worker of big 4

company.

i. Life of the worker will

not be balance. Most of

their time will be spent

on doing work and lesstime for family or other

social activities.

ii. Very challenging

because they need to

always be prepared and

maintain the

competency. Need to

always up to date to

current issues and

standards and must be

a fast learner.

Otherwise, their service

might be terminated

due to outdated and

incompetency.

JabatanAkaunt

an Negara

i. Public sector and privatesector treat their account

differently. Public sector use

modified cash basis meanwhile

private sector use accrual

basis and etc. Working in

J.A.N.M will give different

environment and more

excitement.

ii. J.A.N.M is under MOF so its

mean working in J.A.N.M isworking with government.

Working with government

gives more secure, stable and

steady environment.

i. Lower salary payment if

compared to salary if

working in private

sector with the same

qualification and

experience.

ii. Gain less experience of

conducting global ormulti-national

companys accounts.

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REFERENCES &

ATTACHMENTS

Jane Lazar and Huang ChingChoo, Financial Reporting Standards for Malaysia

3rd edition, McGraw Hill, 2010

RoshayaniArshad, FaizahDarus, ArunMohamad and Dennis Taylor, Financial

Accounting And Reporting in Malaysia, Pearson, 2010.

http://www.sunway.com.my/

http://www.ioigroup.com/corporateresponsibility/corporate_responsibility.cfm

http://www.sc.com.my/

http://www.deloitte.com/view/en_MY/my/index.htm

http://www.anm.gov.my/public_html/bm/default/faq02.php

http://www.masb.org.my/

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http://www.sunway.com.my/http://www.ioigroup.com/corporateresponsibility/corporate_responsibility.cfmhttp://www.sc.com.my/http://www.deloitte.com/view/en_MY/my/index.htmhttp://www.anm.gov.my/public_html/bm/default/faq02.phphttp://www.masb.org.my/http://www.ioigroup.com/corporateresponsibility/corporate_responsibility.cfmhttp://www.sc.com.my/http://www.deloitte.com/view/en_MY/my/index.htmhttp://www.anm.gov.my/public_html/bm/default/faq02.phphttp://www.masb.org.my/http://www.sunway.com.my/

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