Qualitative Characteristic of Accounting Information in the Financial Statements

Topics: Financial statements, Balance sheet, Income statement Pages: 10 (2692 words) Published: July 14, 2013









Bursa Malaysia was in the beginning started as the Singapore Stockbrokers’ Association back in the year 1930. For Malaysia, it is the first official securities business organization. After seven years, it was re-registered as Malayan Stockbrokers’ Association. From the years 1937 to 2004, many changes in the business procedures happened which includes name changes. Bursa Malaysia provides comprehensive exchange-related services which include trading, clearing, settlement and depository services (Dahmash, N., 1995).

There are numerous sectors listed under Bursa Malaysia; consumer products, technology, trading/services, industrial products, construction, plantation and more. Here in this paper, the discussion is focused on Zhulian Corporation Berhad, which is consumer product. The name Zhulian is originated from Chinese characters which means rapid growth and far sighted in the business contexts (www.zhulian.com). Zhulian was started in Malaysia on 2nd January 1997 following the compliances of Companies Act, 1995. It was started as a private limited company known as Zhulian Corporation Sdn Bhd.

Seven years after the formation of Zhulian Corporation Sdn Bhd, the company changes into a public limited company and the original name was accepted. Zhulian Corporation Berhad (ZCB) was initially listed on the Main Board of Bursa Malaysia Securities Berhad on 27th April 2007. Zhulian has been applying their vision and mission implementations in the business from the time they started their operation. The major vision of the ZCB was to emerge as the first principal company for health and beauty products. And they determined to achieve this by earning customers’ confidence and interest with hard work, legitimacy and product revolution. In total, ZCB developed seven missions to be achieved in offering quality products to the consumers; offering respectable management and finest customer service to ensure customers are pleased and satisfied with their product. Executing seven guided philosophies such as being innovative, enthusiastic, mindful, respectful, passionate, hearty and visionary, ZCB anticipates to gain victory and set a good model for their competitors.

Zhulian’s financial highlights from the year 2008 to 2012 displayed constructive progress and the profit after taxation has jumped from 2008 RM 74,690 (in the year 2008) to RM 117, 090 (in the year 2012). This is almost 36.21% of increment. Total assets also displaying increased figure from 342,457 to 528, 840 and total borrowings in the five year period are zero.

This financial result of Zhulian Corporation Berhad considerably shows that this company has a stabilized business. The main business operation of the company is in Multi-Level Marketing (MLM) that was established in few countries namely Indonesia, Thailand, Singapore and Malaysia. Zhulian is dynamically involved in costume jewellery, costume manufacturing, consumer products and printing as well.

External Users

External users are defined as a group of personals outside the organization. They are not part of administration team in a company but they are the financial accounting users whom receive information about the company’s financial history. The external users neither engaged in the daily operation of the company. According to Kieso, D. E., Waygandt, J. J., & Warfield, T. D. (2005) case of individuals or groups whom can be considered as external users are investors, creditors, shareholders, consumer groups, customers, external auditors and government agencies. Accounting particulars they collect from a particular organization allows them to decide about...

References: • Dahmash, N. (1995). Financial Statements and Accounting Standards Generally Accepted.. Amman-Jordan.
• Kieso, D. E., Waygandt, J. J., & Warfield, T. D. (2005). Intermediate Accounting. (11 edition). Wiley Publisher.
• ACCPA, (2006) Journal of Accountancy, (Monthly Journal) September 2006, p. 17.
• Cheney, G. (2006). FASB, IASB request views on new reporting concepts. Accounting Today, Aug. 21-Sept. 3.
• Singleton-Green, B. (2006). The gathering. Retrieved on Oct. 2006, from http://www.accountancymagazine.com
• Al-Duneibat, A
• Amir, E. and B. Lev (1996) 'Value-relevance of nonfinancial information: The wireless communications industry ', Journal of Accounting & Economics, Vol. 22, No. 1-3, pp. 3-30.
• Goodwin, J. and K. Ahmed (2006) 'Longitudinal value relevance of earnings and intangible assets: Evidence from Australian firms ', Journal of International Accounting, Auditing & Taxation, Vol. 15, No. 1, pp. 72-91.
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