Consumer Protection Law of Uae

Consumer Protection Law of UAE In United Arab Emirates; a new federal consumer protection law has been promulgated. Under which a consumer protection committee formed to monitor the prices of consumer goods. The provisions of the laws advocate the principle of healthy competition and fighting monopoly and commercial fraudulence. The new legislation is complementing other laws concerning civil procedures, commercial fraudulence, commercial agencies, industry organization and trading in precious gems and metals.Disregarding any provisions of these laws could lead to violation of other related laws and this itself is enough to ensure strict enforcements. The law No: 6 of 2006 covers and tackles issues relating to the rights of consumer, responsibilities and liabilities and specifying penalties to be imposed on people for selling substandard goods. Under the law, a consumer protection higher committee will be constituted under the chairmanship of the Minister of Economy. The Committee wi ll also comprise of representative of the Consumer Protection Societies.The Committee formation and determination of its powers will be decided by a resolution of the cabinet. In case of a crisis or extraordinary circumstances in the market leading to price hikes, the minister will recommend procedures to curb such price increases and protect consumer’s interests. A new Consumer Protection Department (CPD) will also established at the Ministry of Economy (MOE) with a mandate to supervise the execution of the general policy for the protection of consumer in cooperation with the authorities.The Key responsibilities of CPD includes; 1. To supervise the implementation of policies designed to protect Consumers in cooperation with the concerned authorities in the State. 2. To coordinate with the concerned authorities in the State in order to cope with the unlawful commercial practices detrimental to the Consumer. 3. To coordinate with the concerned authorities to heighten Consumer awareness in the State about the commodities and Services, along with having the Consumers acquainted with their rights and the methods of the claims thereof. 4.To monitor Price movements and curb Price increases. 5. To achieve the principle of the honest competition and fight monopoly. 6. To receive complaints from Consumers and refer them to the concerned authorities or otherwise take the necessary action(s) prescribed in the Department’s mandate. A Complaint may be filled directly by the Consumer or through the consumer protection association, when such acts as the representative of the particular Consumer. 7. To publish and distribute the decision and recommendations designed to raise Consumer awareness.The key responsibilities of the (CPD) includes increasing the consumer’s awareness, monitor the movement of prices and control their increase, combat monopoly, to receive consumers complaints and adopt appropriate action. The law states that the Provider shall upon offering any commodity to consumers shall prominently display in the cover of the commodity or on the packet a label the particulars of the product including date of production,or packing, net weight, country of origin, expiry date, compnents and specifications of product etc.The Provider shall also prominently display the price of the product either in the label or at the place where the commodity is displayed. The consumer shall also have the right to receive a dated bill for the product with paticlulars such as price, type etc. The laws warrants the conformity of the product or the service provided to the consumer with the declared and approved standardized specifications. As per the law, the supplier is prohibited to display or promote counterfeited commodities that would inflict damages or losses on consumers.According to the new law, a consumer will be entitled to be indemnified against personal or financial damages in accordance with the general rules in force. Any agreement in contravention therewith be null and void. Concerning commercial and trade agencies, the law says that each commercial agent or distributor shall honour all guidance provided by the manufacturer or the trade agent of the commodity. The law also obliges the provider to provide for repair, maintain or provide service to the product after sales and to replace a product if a defect is found in the product within a specific time period.The law also confer legal capcity to CPD to represent the Consumers before the Courts and any other body prescribed by law. Without prejudicing the rights of the parties to go to the Court, the department can also proceed with any settlement to protect the consumers’ interest. According to law, those found guilty of violating the provision will face a fine of not les than Dhs. 1,000/-. In case a supplier or a distributor fails to unequivocally warn against the hazards associated with use of the commodity or the service causing damages penalty will be not less than Dhs. 0,000/-. The new law is a milestone in serving the interests of the consumers in protecting their basic rights against unfair trade practices, unscrupulous exploitation etc and their right to seek redressal against such practices. The law guarantee the consumers right to be heard and to be assured that consumers interests will receive due consideration at the appropriate forum. Environmental Law in the UAE The body of Environmental Law in the UAE comprises Federal Laws and Local Orders issued at municipal level within certain of the Emirates.The UAE also recognises certain international conventions and protocols. A list of the Laws is provided in the appendix to this article. In this article we deal broadly with the provisions of Federal Law No. (24) of 1999 for the Protection and Development of the Environment (â€Å"Law No. 24†) which forms the backbone of the Environmental Law within the UAE. We also deal more specifically with Environmental Impact A ssessments, the procedure relating thereto and the institutions charged with the responsibility for implementing the Law. Law No. 24The objectives and general principles of this Law are the following: Protection and conservation of the quality and natural balance of the environment. Control of all forms of pollution and avoidance of any immediate or long-term harmful effects resulting from planning for economic, agricultural or industrial development or other programs aimed at improving life standards. Co-ordination among the FEA, competent authorities and parties concerned with the protection of the environment and conservation and consolidation of environmental awareness and principles of pollution control.Development of natural resources and conservation of biological diversity in the UAE and exploitation of such resources with consideration of present and future generations. Protection of society, the health of human beings and other living creatures from any activities and acts which are environmentally harmful or impede authorised use of the environmental setting. Protection of the UAE environment from the harmful effects of activities undertaken outside the region of the UAE.Compliance with international and regional conventions ratified or approved by the UAE regarding environmental protection, control of pollution and conservation of natural resources. Law No. 24 and the Executive Order published pursuant to Cabinet Resolution No. (37) of 2001 deals comprehensively with all aspects of environmental protection relating to projects; the marine environment and pollution thereof; liability and compensation for environmental damage; rotection of drinking and underground water; air pollution; disposal of hazardous waste; disposal of medical waste, pesticides, agricultural fixers and fertilisers; nature reserves; the protection of wildlife, as well as the penalties imposed for contravention of any provisions of the aforesaid. The Environmental Impact Assessm ent (EIA) According to Law No. 24, any entity that wishes to undertake a project within the UAE which may have an impact upon the environment must apply to the Federal Environmental Agency (FEA) or the relevant competent local authority for a license.The FEA in co-ordination with the competent authority undertake the evaluation of the environmental impact of projects. The procedure is as follows: The applicant shall attach with his application a complete statement on the project or activity intended to be undertaken including all information required in accordance with the Executive Order and forms included therein. The FEA in coordination with the competent authority shall decide on the application within a period not exceeding one month from the date of submission of the application.The applicant shall be notified of the decision and reasons for rejection of his application if rejected. The period stated above may be extended by one month if the need arises. Owners of projects or establishments approved by license shall undertake the regular analysis of waste and monitor the properties of discharge and pollutants generated from such projects, including degradable materials and keep monitoring records as well as send reports with the results to the FEA and the competent authorities. Federal Environmental Agency (FEA) The Federal Environmental Agency was established pursuant to Federal Law No. 7) of 1993 for the Establishment of the Federal Environmental Agency.The Law sets out the objectives of the FEA being inter alia: To protect and develop the environment: To determine the necessary plans and policies to safeguard it from damaging activities, particularly  Ã‚   Appendix The Environmental Laws in the UAE and International Protocols Federal Laws Federal Law No. 7 of 1993 for the Establishment of the Federal Environmental Agency (as amended by Federal Law No. 30 of 2001). Federal Law No. 24 of 1999 for the Protection and Development of the Environment and i ts Executive Order. Federal Law No. 3 of 1999 concerning Exploitation, Conservation and Development of Living Aquatic Resources. Federal Law No. 1 of 2002 for the Regulation and Control of the Use of Radiation Sources and Against Their Hazards Federal Law No. 11 of 2002 for Regulating and Controlling the International Trade in Species of Wild Fauna & Flora. Abu Dhabi Local Environmental Laws Law No. 16 of 2005 pertaining to the Reorganisation of the Abu Dhabi Environment Agency. Law No. 21 of 2005 for Waste Management in the Emirate of Abu Dhabi. Law No. 28 of 2005 which is a Law Establishing the Abu Dhabi Authority for Culture & Heritage.The above local laws, reference to the federal laws and the protocols can be found on http://www. ead. ae/en Dubai Environmental Laws Local Order No. 61 of 1991, a local order issued by the Municipal Council still governs environmental law at a local level. Federal Law will prevail in the event of conflict and contradiction. Local Order No. 11 of 2 003 regarding Public Health and Safety of Society has replaced the specific provisions in Local Order 61 of 1991 relating to public health. Local Order No. 11 of 2003 supersedes Local Order No. 1 of 1991 in parts only (with the exception of specific provisions relating to public health and safety). We were informed by the Head of the Environment section in Dubai Municipality that a new Local Order will be issued soon. This local order will complement Local Order No. 11 of 2003 and replace Local Order 61 of 1991 in its entirety. The above local orders can be found on the below link: http://vgn. dm. gov. ae/DMEGOV/dm-legislation-localorder-a; and http://vgn. dm. gov. ae/DMEGOV/dm-legislation-order2004-a There were also amendments issued in 2004 to the Local Order No. 11 of 2003.This Local Order and its amendments can be found on Dubai Municipality ‘s website in Arabic. Please see the above links. The Municipality is currently finalizing the Executive Regulations for Local Order No. 11 of 2003 as well as a separate Local Order to be drafted for Occupational Health and Safety in Dubai . Local Order No. 7 for the year 2002 on Management of Waste Disposal Sites in the Emirate of Dubai. Local Order No. 8 of 2002 regarding Sewerage, Irrigation and Water Drainage in the Emirate of Dubai. The DM's technical guidelines and circulars can be found on the DM's website.Sharjah Environmental Laws Sharjah has issued Environmental guidelines pursuant to Law No. 24 of 1999 relating to specific industries, which are as follows; Environmental Guidelines for the Paint and Varnishes Related Industries. Environmental Guidelines for the Aluminium Industry. Environmental Guidelines for the Plastic and Melamine Industry Environmental Guidelines for Laundries. Environmental Guidelines for the Jewellery Industry. Environmental Guidelines for the Electroplating Industry. Environmental Guidelines for Garages and Car Wash Facilities.

Amazon vs. Barnes & Noble Essay

The qualitative services department was hired to provide an in depth analysis of two leaders in their industry, Barnes & Noble and Amazon. The purpose of this report is to provide all the necessary data in an unbiased manner, so that the accounting partners may make their investment decision knowing all the facts and figures about both companies. Our report was developed as a result of conducting independent and group research about each company’s background, competitors, philosophical differences in management, success stories, challenges (past and future), strategic moves, as well as key comparative statistics. Our research was compiled using a variety of online sources. The analysis of these key areas will provide greater understanding as to which company to invest in, Barnes & Noble or Amazon.com. Background Barnes & Noble was founded in 1893 in Wheaton, IL as a printing business but has developed into the largest book retailer in the United States today. Headquartered in New York, Barnes & Noble has 675 stores worldwide and partners with 686 collegiate bookstores. It is traded on the New York Stock Exchange and employs more than 30,000 employees. Barnes & Noble has a significant presence in the United States as a physical retailer of books and magazines. Amazon was founded in 1994 and is headquartered in Seattle, Washington. It is traded on the NASDAQ, and as a strong historical performer, is a component of the NASDAW 100 and the S&P 500. Amazon was founded initially as an online bookstore but soon into seemingly every segment of consumer goods. Amazon is heavily involved in the Internet as an online retailer and producer of various applications linked to its tablet products. Amazon does a significant amount of business in books, both online and print, but differs from other book retailers in that it is a selling platform for seemingly anything you could think to purchase on the Internet. Competitive Strategy Barnes & Noble has a significant competitive advantage over Amazon and a number of other book retailers in that they have a physical location. While online shopping is a significant competitive force, it is very difficult to beat a physical store. Barnes & Noble goes to great lengths to ensure that their customers are comfortable in their stores, outfitting them with plush couches and chairs. In addition, Barnes & Noble often has cafes in their store locations. The goal is to keep customers in store as long as possible, even if they spend most of the day reading a magazine or a book, to ensure that they are making some kind of purchase. The store locations serve a two-fold purpose; they act as a physical showcase for books that can be purchased online and have environment that fosters community. The college textbook business is a very profitable segment of Barnes & Noble’s business. There is a great degree of markup on college textbooks that is deflected to students, and when students sell books back to colleges, it is at a greatly reduced price. Books repurchased by Barnes & Noble are repackaged and resold for a price greater than cost. Barnes & Noble is set apart from competition in this regard because no other retailer has a similarly structure partnership. The simple model that Amazon operates under is its key to success. Amazon uses little more than a bare bones online platform to sell its products meaning a minimal cost structure. At the same time, this business model requires no asset investment in physical store locations. Through an online platform, Amazon can offer products from a variety of sellers on a global scale, allowing them to mitigate expensive shipping costs. This online platform also means increased transferability to mobile devices, meaning they can offer the same services through application stores and exchanges. Amazon’s Kindle product line is a competitive advantage because it was first to market for handheld book readers. Since releasing the first Kindle, Amazon has only increased the Kindle’s capabilities to match that of the iPad, Nook, and Galaxy tablets. Amazon’s distribution process is a work of art. Amazon has been working very  hard to revolutionize the distribution process, from creating futuristic technology to developing basic processes that would increase efficiency of distribution channels. Currently, Amazon’s distribution channels are almost entirely automated. When a product is ordered, a â€Å"robot† processes the order and searches out the product on the warehouse shelves. The robot packages the product and returns it to the front of the warehouse, while dozens of other machines are operating simultaneously. Amazon’s extensive distribution network is far superior to any other competitors. Vision for the Future It’s clear that both companies understand the importance of e-commerce and accessibility to consumer goods on the online realm. Amazons’ chief business model is Internet commerce, but Barnes & Noble is moving towards this realm of commerce with the creation of the Nook. Both companies see business via handheld tablets becoming more prevalent, evident in the ever-increasing capabilities of the Nook (B&N) and Kindle Fire (Amazon). Barnes & Noble has beefed up their online presence while reducing their number of stores as well. Amazon’s vision of the future has more to do with distribution than anything else. Amazon is doing everything in their power to create a shopping experience similar to going to an actual store; including the instant gratification of receiving your purchased goods right as your purchase them. Amazon is moving towards an incredibly automated distribution channel that will reduce time to consumer through revolutionary technology. One of these te chnologies is drones that will fly purchased goods to a consumer’s home and drops them on the front step. Both companies understand the profit potential of the industry and are taking steps to capitalize on profit opportunities. Company Success Stories Both Barnes & Noble and Amazon.com have experienced great success in their years in business. Barnes & Noble originated in 1873 and opened its first bookstore in New York City in 1917. In the 1970’s they became the first bookstore to advertise on television, as well as the first bookstore to discount New York Times bestsellers at 40% off. From 1992 through 2003, Barnes & Noble released a series of classics for adults and children under the imprint Barnes & Noble Classics Collection. Barnes & Noble stores are also known for their Starbucks cafes, where people often sit and relax with a cup of coffee or a snack. Undoubtedly, Barnes & Noble’s greatest success comes from the NOOK, their electronic book reader, introduced in November 2009. The NOOK’s biggest competition for the tablet market comes from the Amazon Kindle Fire, and Apple’s iBooks for iPhone, iPad and iTouch. Although only in business 17 years, Amazon.com has experienced great success and is now the world’s largest retailer. Amazon has separate retail websites for the following countries: United States, Canada, United Kingdom, France, Germany, Italy, Spain, Japan, and China, with international shipping to certain other countries for some of its products. Amazon.com sells a variety of retail goods online including books, jewelry, baby items, tools, software, toys, and is a huge third party reseller. Amazon Prime membership is very popular and for an annual fee, a user can join, which entitles them to free two-day shipping on eligible purchases. Amazon Prime also provides Amazon Instant Video and access to the Kindle Owner’s Lending Library. Amazon’s greatest success to date is the introduction of its e-reader, Kindle, in November 2007 and the Kindle Fire in September 2011. Since 2007, Amazon has released multiple versions of the Kindle e-reader and two versions of the Kindle Fire. Its biggest competitors in the tablet market are the Barnes & Noble NOOK and the Apple iPad being used in conjunction with the Kindle app. Past Challenges The challenges that these two companies have faced, and continue to face, are the digital landscape and competition. Barnes & Noble became the last hope for bookstores after the collapse of Borders. Barnes & Noble is now the last major bookstore chain standing. The company is in constant competition with e-commerce sites, e-readers and tablets. It is safe to say that Barnes & Noble’s primary competitor is Amazon. Barnes & Noble began to utilize their website, offering more titles and including free shipping for members. After Amazon launched its tablet, the Kindle, Barnes & Noble was forced to step up in the digital landscape. It created the NOOK and the NOOK Bookstore. Several generations later, the NOOK has come a long way in its  evolution. Now it has become a tablet with color, a built in light, Internet searching and application capabilities. Its newest tablet comes in high definition. While the NOOK looks more appealing than it did in previous years, one thing stands i n its way of success, which is price. Amazon’s Kindle, is priced anywhere from $69-$100 cheaper than the NOOK. This is not to say Amazon doesn’t have its challenges either. Amazon has made a name for itself globally, however it still has competition with other e-commerce sites like e-Bay. EBay allows individual sellers to auction essentially anything they want for a fee. Amazon has limitations on what individual sellers can sell due to competition with other retailer partnerships with Amazon. However, according to a recent Forrester report, 30 percent of all online shoppers start at Amazon to research products as opposed to Google or eBay (Savitz, 2012). Another competitor Amazon faces is Apple. The highly coveted Apple iPad is in fierce competition with Amazon’s Kindle. While the iPad is more expensive than the Kindle, Apple fans might point out that the iPad has far more tablet-optimized apps, options for 4GLTE connectivity, and is the thinner and lighter device of the two. However, Amazon’s Kindle is a cheaper alternative for those who cannot afford an iPad or even the NOOK. Future challenges Any company trying to survive in today’s economy will undoubtedly face challenges. The key to success lays in predicting these challenges and implementing strategies to overcome them. The places where Amazon finds opportunity seem to be the same places where Barnes & Noble faces challenges. Firstly, Amazon continues to make it very attractive for authors to self-publish their titles with their publishing services including, the Kindle Direct Publishing option for online books, and the CreateSpace option for print books. Barnes & Noble does offer its own self-publishing service, PubIt, but its services are only offered for e-books, not print. In fact, 28% of the top-selling titles on Kindle are not even available on the NOOK (McIlroy, 2012). If Barnes & Noble wants to compete it will have to expand  its self-publishing services and offer better incentives to authors. Another challenge that Barnes & Noble faces is its lack of an international presence. The fact that Amazon operates in so many countries worldwide is a serious challenge for Barnes & Noble. The Kindle is available internationally, but the NOOK is not. The NOOK is one of Barnes & Noble’s most successful products. Therefore, it would seem logical to expand the number of locations where this product can be purchased. However, it still remains unclear as to when and if Barnes & Noble plans to expand to international markets. One challenge that Amazon could face may be the law. Since it allows an unlimited number of people to sell on the site, from all over the world, it is difficult to monitor every single product that is sold under the Amazon.com brand. In order to prevent future lawsuits it is crucial that Amazon.com employs a highly skilled legal team, and closely monitors its sellers and their products. Recommendation We have found that Barnes & Noble and Amazon may appear to rivals but this appearance is only visible on the surface. With further examination of the facts, it is evident that one company is far more successful than the other. We have concluded that Amazon.com is that company. These are the main factors that have contributed to our conclusions: †¢Amazon has more appealing future growth with the implementation of drone shipping. †¢Amazon’s success of the Kindle compared to Barnes & Noble’s NOOK. †¢Amazon sells internationally. Barnes & Noble only operates in the US. †¢Amazon allows an unlimited number of sellers to do business on its site. Barnes & Noble restricts its number of sellers to 200. †¢Amazon.com is more attractive and rewarding for self-publishing which is set to play a leading role in the future of industry. †¢Amazon has the capital to sell its products cheaper than Barnes & Noble. Therefore, with the evidence provided in this re port, we have determined that the most secure investment opportunity of these two companies is Amazon.com. Based on current performance, and the opportunities for future success that were outlined in this report, it is now clear that Barnes & Noble simply cannot compete with Amazon.com’s current success and future potential. Works Cited Amazon.com. (2011, October). Retrieved from http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-mediaKit Barnes and noble booksellers. (2011). Retrieved from http://www.barnesandnobleinc.com/for_investors/for_investors.html barnesandnobleinc.com . (2012). Retrieved from http://www.barnesandnobleinc.com/our_company/our_company.html McIlroy, Thad, (2012), Four Disadvantages for Barnes & Noble in the Bookseller Wars Retrieved from http://www.digitalbookworld.com/2012/four-disadvantages-for-barnes-noble-in-the-bookseller-wars/ Savitz, Eric. (2012, October 29). Amazon’s Hidden Weak Spot: Lack Of Local Leverage. Retrieved from http://www.forbes.com/sites/ciocentral/2012/10/29/amazons-hidden-weak-spot-lack-of-local-leverage

Malaysia banking system - Free Essay Example

Sample details Pages: 26 Words: 7814 Downloads: 1 Date added: 2017/06/26 Category Statistics Essay Did you like this example? Introduction 1.0 Introduction According to Bank Negara Malaysia, Malaysia banking system is divided into 3 main groups which are; 1) monetary institution comprising the Central Bank (Bank Negara), commercial and Islamic financial institutions; 2) non- monetary institutions namely merchant banks, credit and insurance companies, and development banks; and 3) foreign banks representative offices and offshore banks. Prior to the 1997 financial crisis, Malaysia had thirty seven commercial banks, forty finance companies and twelve merchant banks. However, after the financial crisis 1997, most of the banks has consolidation through mergers and acquisitions to strengthening of these financial institutions has result in thirty five licensed commercial banks, thirty one finance banks and twelve merchant banks. Don’t waste time! Our writers will create an original "Malaysia banking system" essay for you Create order As to date, there are only twenty two licensed commercial banks and fourteen merchant banks in Malaysia. (Shanthi Kandiah, 2009) (Table 1) Financial Institutions 1997 1998 2009 Commercial banks 37 35 22 Finance Companies 40 31 0 Merchant banks/Investment banks 12 12 14 Table 1 : Number of Financial Institutions However, among the twenty two licensed commercial banks only nine of the commercial banks are local bank and the rest of thirteen commercial banks are foreign banks. From the nine local commercial banks out of eight banks listed in Bursa Malaysia are: Malayan Banking Berhad, Hong Long Bank Berhad, Public Bank Berhad, Affin Bank Berhad (under Affin Holding Group), Alliance Bank Berhad (under Alliance Financial Group Berhad),Ambank Berhad ( under AMMB Holding Berhad), Eon Bank Berhad (under Eon Capital Berhad) and lastly CIMB Bank Berhad. (under Bumiputra- Commerce Holdings Berhad) while Rhb Bank Berhad, is currently not listed in the Bursa Malaysia. (Table 2) NO NAME Listed Non-Listed 1. Affin Bank Berhad (under Affin Holding Group) x 2. Alliance Bank Malaysia Berhad (under Alliance Group Berhad) x 3. AmBank (M) Berhad (under AMMB Holding Berhad) x 4. CIMB Bank Berhad (under Bumiputra-Commerce Holding Berhad) x 5. EON Bank Berhad (under Eon Capital Berhad) x 6. Hong Leong Bank Berhad x 7. Malayan Banking Berhad x 8. Public Bank Berhad x 9. RHB Bank Berhad x Table 2: List of Local Commercial Banks in Malaysia After the financial crisis 1997, significant numbers of bank had bankrupt or were merged with other financial institutions, which proven that, the failure of bank is due to their failure in managing their liquidity risk properly. In other words, during the financial crisis a lot of banks were incapable to provided sufficient amount of money to meet the current need of their investors. As thus, banks had said as to failure to managing their risk properly because do not have enough money liquidity in banks to meet the demand of their investors. From another perspective, big bank may not always be better because increase in organisation may present more problems than it. Bank have found that to survive it is more necessary to have a leading market share in a variety of businesses rather than just having a lot of assets or a huge capital. Thus, proper management of risk related to assets and capital market among bank is crucial. If the bank was able to assess the risk at an early stage, then the bank may be able to plan for appropriate action to be taken to reduce risk before it occurred. 1.1 Risk Management in Banking Sector Driven by the increasing complexity of doing business, risk management has become an important and integral part of the companys internal control and governance in order to achieve its plans and objectives. In other words, risk management refers to the methods and processes used by organizations to manage risks (or seize opportunities) related to the achievement of their objectives. ( Azlan Amran, Abdul Manaf Rosli Bin and Bin Che Haat Mohd Hassan, 2009) Risk management in general involves identifying; assessing, responding, prioritizing then risk followed by minimization of risk and control the probability of risk. Risk management is entering into many aspects of banking business such as increased attention and concern must be given to ensure the risk under control. Ideally, risk management in the banking sector is to reduce the risk to the minimum. For example, credit approval, the officer can reduce this risk through measure the ability to pay back by customer before approved the credit. In facing the challenge of global financial environment, banking sector is required to implement integrated risk management systems. (Rajna, 1999) They are required to identify their current risk exposure such as market risk. It is a necessary risk-reducing tool to promote long-term profitability and stability of the banks and enhance the competitive advantage of banks. If a bank has right risk management systems that can effectively capture the risk exposures, there is an opportunity for them to lower their capital charges. As a result, proper risk management practice is essential for banks to maintain competitiveness over the long run. Lastly, to manage the risk in banking sector, first the banks need to identify the risk. The risk related to banking consists of credit risk, market risk; interest rate risk, foreign risk, liquidity risk and operation risk. Risk identification is the first stage of risk management. This mean that, banks need to correctly identify the risk such as market risk of the risk expose because it helps to develop basis for next steps analysis and control of risk management. (Lubka Tchankova, 2002) 1.2 Risk Management Disclosure in Banking Sector The purpose of risk management disclosure is to allow financial analysts, shareholders, creditors, clients and any interested parties to rely on minimal standards of quality and consistency in the risk management policies of financial firms. Greater promote transparency of risk management could benefit investors. Increased transparency is considered in the numerous explanations offered in the finance literature for the willingness of firms to voluntarily disclosure complete and timely information. This is said to be benefit investors as they need comprehensive risk information if they are to completely understand the banks risk profile. Risk is an unavoidable element of any business venture, especially for banking sector. In addition to financial risk, a company is also susceptible to business risk or changes in the overall economic climate that can adversely affect the price of its securities. Hence, it is in the stakeholders best interest that risk be disclosed in a timely manner. (Azlan Amran, Abdul Manaf Rosli Bin and Bin Che Haat Mohd Hassan, 2009) Disclosure of risk management is to promote a more robust financial system. Moreover, can help to promote and maintain a sound financial system by strengthening the incentives for sound risk management within financial institutions and by improving the information which financial institutions use to make credit allocation decisions to the corporate sector. (Rajna Gibson, 1999) Normally, those banks with better disclosure will tend to attract more investor to invest, or clients more willing to place their money in the bank. Besides that, the disclosure of risk management helps to reduces information asymmetry. Investors and shareholder would be able to justify the risk position of the bank through the disclosure of respective financial information. This also can help them to justify whether the manager is acting on the interests of the company. Besides that, disclosure of risk facilitates supervision and reduces monitoring costs. Public disclosures of risk in banks annual report enable the management to foresee the potential problems; therefore can plan to reduce risk in advance, thus it save the monitoring cost indirectly. (Philip, 2005) It is argued that banks that disclose greater amounts of useful risk information would benefit from a reduction in their cost of finance as the providers of funds will be in better position to judge the banks risk level and this will remove the need for them to incorporate a risk premium within the cost of capital. (Linsey and Shrives, 2005) 1.3 Types of Risk in Banking Sector Risk of the banking sector can be varied and widely difference across the banking institution. Generally the risk for banks business can classified into five popular categories: credit risk, interest rate risk, foreign exchange risk, liquidity risk, and operating risk. 1. Credit risk Credit risks the most important risk categories in banking. Risk that due to the borrower unable to repay back to the banks. In order word, credit risk is the bank borrower fail to meet its obligations in accordance with agreed terms and conditions. The aim of credit risk management is to maximize a banks risk- adjusted rate of return by maintaining credit risk exposure within acceptable boundary. (Catherine Soke Fun Ho, 2009) Bank Negara Malaysia (2009), credit risk continues to remain the largest source of risk for banking institutions in Malaysia. This is due to the fact that a banking institutions loan portfolio is typically the largest asset and the major source of revenue. 2. Interest rate risk Interest rate risk is one of the market risks. It is the effect of changes in market interest rate levels on the profitability of the bank. Increases in interest rates may lead to higher profits, lower profits, or no change in bank profiles. While the risk due to changes in interest rates has always been a possibility, this source of risk was not considered to be serious as long as interest rates were stable. Changes in interest rates can damage the banks profitability by increasing its cost of funds, lowering its returns on earning assets, and reducing the value of the owners investment. 3. Foreign exchange risk (Forex) Risk associate with the loss in the exchange of the currency. Foreign exchange risk is the loss being incurred because of being party to a foreign currency transaction or holding a foreign currency changes. For extreme cases, it may involve blocking of convertibility. 4. Liquidity risk Liquidity, or the ability to fund increases in assets and meet obligations as they come due, is crucial to the ongoing viability of any banking organization. Therefore, managing liquidity is among the most important activities conducted by banks. Sound liquidity management can reduce the probability of serious problems. Indeed, the importance of liquidity transcends the individual bank, since a liquidity shortfall at a single institution can have system-wide repercussions. (Basel, Feb 2000) 5. Operating risk This is refers to the risk of losses or unexpected expenses associated with fraud, check kiting, and litigation. According to Bank Negara 2009, large corporate experience of the failures due to fraud and lapses in internal controls has focused greater attention on improving operational risk management in banking institutions. 1.4 Problem Statements Driven by increase competitive in business environment today, risk management is required to be disclosed in financial statements of the companies in complying with FRS 132. However, there is an issue where a lot of companies are not willing to disclose additional voluntary information in the financial statements. As they worry valuable information is available to their rivals and creates competitive disadvantages. Radiah Otman (2009), firm may not like to disclose extensive information that might have future repercussions for their bare existence due to sensitivity of such information. This is one of the problem which investors or others interested parties do not have extensive information to evaluate banks financial performance. Apart from it, he also said that interest rate disclosure was favored as compared to credit risk among the market risks categories. 1.5 Research Question The purpose of this study is to determine the extent to which commercial banks are providing risk management disclosure (qualitative information) suggested under FRS 132. Thus, the specific research questions are: Research question 1: Which type of risk more likely to be disclosed by commercial banks in Malaysia? Research question 2: Do commercial banks provided additional voluntary disclosure? Research question 3: Do the commercial banks in Malaysia disclose financial risk management objectives and policies? 1.5 Objective of the Study The general objective of this study is to examine whether the commercial bank in Malaysia complying with the general risk management guideline that provide by the FRS 132. However, the objective is broken down as below; a) To examine which type of risks are more likely to disclosed by the commercial banks in Malaysia. b) To make the comparison among commercial banks to the extent of the information disclosed in the financial statement. Whether information disclosed is voluntary information or mandatory information. c) To examine whether the commercial banks in Malaysia disclosure financial risk management objectives and policies. d) To examine whether the commercial banks in Malaysia comply with Financial Reporting Standards in Malaysian. 1.6 Conclusion After the financial crisis 1997 and also Enron scandals, it is increased need for the demand of more risk management disclosure. Risk management plays an important role in the global financial sector. Banking sector is inherently involved in risks and these risks need to be managed. Inherent risks are the risk that due by economic environment. Bank is highly exposed to this risk, as so the effective risk management is crucial. It is important for banks to release risk information to the marketplace that enables stakeholders to assess its risk profile. Disclosure of risk in financial statement able to help investors have a better understanding on how firm value is affect by risk exposure, this also can help to reduce information asymmetry between banks, investors and other stakeholders. One of the major problems here is that some companies are not willing to disclose more extensive information in their annual reports as they worry that the information is quantifiable to their competitors. Besides that, when the cost of disclosure is higher than the benefit, they will choose not to disclose the risk information. Thus, this study is to undertake which type of risk is most likely to be disclosed by commercial banks in Malaysia and examine whether the information disclosed is moderately or voluntary disclosed additional information. This study also evaluates the level of compliance among banks in Malaysia, and whether the banks disclosed financial risk management objectives and policies. 2.0 Introduction Prior to British colonial in Malaysia, accounting in Malaysia more emphasis on the recognize expenditure and revenue rather than recognize income. As after the British colonial and the accounting development and structure change over time there is increasing important for the issue such as recognition, measurement, and accountability. However, the accountants prepare the accounting reports is more emphasis on the shareholder needs. This mean they tend to alter the reports to the amount of income at which their shareholder desired in order to attract more investors. Therefore, sometime the annual reports do not actually reflect the fact of the financial position of the company. As for this reason, accounting standards play important roles to ensure that the annual report of the company is complying with the standard that are required. Companies registered in Malaysia must comply with the Company Act 1965. The Act prescribes the preparation of general purpose financial reports by certain categories of companies, and this preparation is subject to regulations from several sources. The provision of information is essential for decision maker such as investors, creditors and interested parties. However, there is a need for regulations and monitoring to ensure that the information provided to such users is reliable and unbiased. As for financial institution in Malaysia the key players in the financial reporting environment consist of Companies Commission of Malaysia; Central Bank; Securities Commission, and Malaysia Accounting Standards board (MASB). 2.1.0 Companies Commission of Malaysia All companies that incorporated under Company Act 1965 are regulated by Companies Commission of Malaysia. The Act requires certain companies, such as public listed companies or private limited companies, to prepare financial statements in accordance with approved accounting standards. Among other functions, CCM monitors compliance with accounting standards and the Company Act 1965. This involves investigating companies that do not comply with accounting standards. The function CCM includes: * enhancement and promotion of the supply of business and corporate information; * acting as agent of the Government and providing services in collecting and enforcing payment of prescribed fees; * regulating matters relating to corporations, companies and business. * encouraging and promoting proper conduct amongst directors, secretaries and other officers of a corporation The Companies Commission has played an active role in the accounting profession and the Malaysian Accounting Standards Board (MASB). Coordinated efforts are undertaken by the profession together with the Companies Commission and the MASB to identify issues that impact the financial and reporting environment. 2.1.1 Central Bank Bank Negara Malaysia is the central bank of Malaysia. The main objectives are to issue currency and maintain reserves in order to safeguard the value of the currency; Act as a banker and financial adviser to the Government; promote monetary stability and a sound financial structure; and influence the credit situation to the advantage of the country. Apart from that, Bank Negara Malaysia also responsible for regulates and supervise the financial system in Malaysia. 2. 1.2 Banking and Financial Institutions Act 1989 (BAFIA) Banking and Financial Institutions Act 1989 (BAFIA) is one of the legislations to regulate and supervise the financial system. The objective of the Banking Financial Institutions Act, 1989 (BAFIA) is to provide new laws for the licensing and regulation of the institutions carrying on banking, finance company, merchant banking, discount house and money-broking business, for the regulation of institutions carrying on certain other financial businesses, and for the matters incidental thereto or connected therewith. BAFIA was introduced to provide for an integrated supervision of the Malaysian financial system and also to provide the Central Bank with the power to speedily investigate and prosecute, if necessary any illegal activities in an attempt o reduce white-collar crime. 2.1.3 Securities Commission (SC) Securities commission was set up under the Securities Commission Act 1993. The function of the Securities Commission is to promote a strong and healthy securities market and to maintain the confidence of investors in line with the provisions of the Securities Commission Act and the Securities Industries Act 1983. SC also regulates the corporate sector, particularly the listed companies. Company that listed in bursa Malaysia required filing detailed annual reports with the Commission. The period of the financial report date and the issue date must not exceed six months. The annual reports must be audited. The public companies are required to maintain a high standard of financial disclosure in order to provide the public with the information that is necessary to make informed investment decisions. The SC played a significant role in the establishment of the Financial Reporting Act 1997 and continues to be involved in the Malaysia Accounting Standards Board (MASB). The function of the SC included: * supervising exchanges, clearing houses and central depositories; * regulating all matters relating to securities and future contracts, unit trust schemes, take- over and mergers of companies; * encouraging self regulation; * approving authority for corporate bond issues; * licensing and supervising all licensed persons; * ensuring proper conduct of market institutions and licensed persons. The SC has since 1996 embarked on three phase shift towards a Disclosure Based Regulation (DBR). With effect from 2001, it has embarked on a full DBR focus with requirements of high standards of disclosure, due diligence and corporate governance. Disclosure is crucial to investors who wish to invest or who have invested in securities sp that their investment decision process can be facilitated. Due diligence is a process undertaken by companies in disclosing information, to ensure that all information disclosure in full, timely and accurate. Corporate governance is the process and structure used to direct and manage the business and the affairs of the company towards enhancing business prosperity and corporate accountability with the ultimate objective of realizing long- term shareholder value, whilst taking into account the interests of other stakeholders. 2.1.4 Malaysia Accounting Standards Board (MASB) The Financial Reporting Act 1997 establishes the Financial Reporting Foundation (FRF) and the Malaysian Accounting Standards Board (MASB). The main functions of the FRF are to provide the financing arrangements for the operations of the MASB, and review the MASB performance. MASB is an independent authority to develop and issue accounting and financial reporting standards in Malaysia. The main functions of the MASB are to: * issue new accounting standards as approved accounting standards; * review, revise or adopt as approved accounting standards existing accounting standards; * issue statements of principles for financial reporting; * sponsor or undertake development of possible accounting standards; * conduct such public consultation as may be necessary in order to determine the contents of accounting concepts, principles and standards; * develop conceptual framework for the purpose of evaluating proposed accounting standards; * make such changes to the form and content of proposed accounting standards as it considers necessary. The MASB together with the Financial Reporting Foundation (FRF) make up the framework for financial reporting in Malaysia. 2.2.0 FRS132 Disclosure Requirements In Malaysia, Bank Negara Malaysias and Financial Reporting Standards requirements act as quality control measures for bank to comply in respect of their disclosure contents of their risk in the annual report. FRS 132 (IAS 32) Financial Instruments Disclosure and Presentation shall apply for annual periods beginning on or after 1January 2006. FRS 132 should be read in the context of its objective and the Basis for Conclusions, the Framework for the Preparation and Presentation of Financial Statements. In this study, FRS will take as the guideline to examine the level of compliance among banks in Malaysia to the extent of risk information disclosed. According to paragraph 56 of FRS132 Financial Instruments Disclosure and Presentation, there is a specific requirement that an entity shall describe its financial risk management objectives and policies, including its policy for hedging each main type of forecast transaction for which hedge accounting is used. Similarly paragraph 58 of FRS132 Financial Instrument specifies that an entity shall disclose a description of hedge; nature of risk being hedged, and a description of the financial instruments designated as hedging instruments and their fair values at the balance sheet date. For each type of market risk such as interest rate risk, an entity shall disclose information about its exposure to interest rate risk, including effective interest rates and maturity dates (or contractual re-pricing). On the other hand, for credit risk an entity shall disclose the amount that best represents its maximum credit risk exposure as at balance sheet date, without taking into account of the fai r value of any collateral, in the event of other parties failing to perform their obligations under financial instruments, and significant concentration of credit risk. 2.2.1 Foreign Exchange Risk Disclosure Format When hedging instruments held or issued by an entity, either individually or as a class, creates a potentially significant exposure to the foreign exchange, commodity and interest rate risks. Their terms and conditions that warrant disclosure are: the principal, stated face value, for derivative such as IRS, forwards and future contracts; date of maturity, early settlement option held by either party to the instrument, including the period in which, or date at which, the options can be exercised and the conversion or exchange ratio. 2.2.2 Interest Rate Risk Disclosure Format The carrying amount of financial instruments exposed to interest rate risk may be presented in tabular form, grouped by those that are contracted to mature or be re-priced in the following periods after the balance sheet date. It can be one year or less; in more than one year but not more than two years; in more than two years but not more than three years; in more than three years but not more than four years; in more than fours but not more than five years; and more than five years. Interest rate information may be disclosed for individual instruments, or weighted average rates or a range of rates may be presented for each class of financial instrument. 2.2.3 Credit risk Disclosure Format The disclosure of the financial assets exposed to credit risk shall include the carrying amount of the assets in the balance sheet, net of any provisions for loss. For example, in the case of an IRS carried at fair value, the maximum exposure to loss at the balance sheet date is normally the carrying amount because it represents the cost, at current market rates, of replacing the swap in the event of default. Besides that, a financial asset subject to legally enforceable right of set-off against a financial liability shall be disclosed. It is intriguing to learn that even though MASB advise companies to disclose liquidity risk but no format has been suggested to date. 2. 3.0 Definition of commercial banks In the early days, commercial banks were commonly known as exchange banks because their business was concentrated mainly in the financing of external trade. This involved primary transactions in foreign exchange, such as remitting and receiving funds to and from abroad, and trading in commercial bills, including the short- term financing of foreign trade. Commercial banks are defined as any person who carries on bank business, under the Banking Act, 1973. Banking business means the business of receiving money on current or deposit account, paying and collecting checks drawn by or paid by customers, and making advances to customers, and include such other business as the Central Bank, with the approval of the Finance Minister, may prescribe. However, definition under the Banking and Finance Institution Act, 1989 (BAFIA) is almost the same as the definition under Banking Act, 1973 in which a bank can be defined as individual or organizations whom operates the business of banking such as receiving deposits for current account, saving account, making payment and receiving customers checks and other financing. Today, all the operations in the banking industry are governed by BAFIA, 1989. It is developed to replace the Finance Company Act, 1969 as well as the Banking Act, 1973. The introduction of the BAFIA is intended to provide an integrated supervision of the Malaysian financial system and to modernize and streamline the laws relating to banking and banking institutions. 2.2.1 History of Commercial Banks Commercial banks worldwide are mostly owned by private sectors. They are formed as a business organization with the objective to make profits. In their early establishment in Malaysia, commercial banks have played an important role in the transaction and development in the industry of commerce. The business was mainly focused in financing the overseas business transactions such as foreign exchange (in term of sending and receiving money to and from other countries) and also financing in the short- term markets. The main focus on external transaction was due to the development of economy sector especially in the import and export. Moreover, the business operations at that time were run by the branches with the supervision of their head office in overseas. The first bank branch in Malaysia was Charted Mechantile Bank, in 1959. The banks head office was initially in India, and then shifted to London and lastly China. Later, when the economy has developed drastically, there were more foreign bank branches. Today, the traditional practice of the banking industry in Malaysia has progressed. An important feature in the development of banking is the growing of locally incorporated foreign and domestic banks. BAFIA came into force on October 1, 1989 the domestic bank were required to formally exchange their licenses for new ones issued under BAFIA. The foreign banks, however, were given a time period of five years (up to October, 1994) to exchange their licenses in view of the provision requiring them to incorporate locally. The growth of locally incorporated banks marked a significant change in commercial banking in the country which prior to the 1970s was dominated by foreign banks. As at the end of 1959, there were then only 8 domestic as compared to 18 foreign banks. After 1982, foreign banks had been restricted from opening new branches in Malaysia in line with the policy to encourage the growth and development of domestic banks, particularly the expansion of the branch network into the rural areas. As at December 1996, there are a total of 37 commercial banks with a total branch network of 1569. The regulated expansion of banks has contributed towards a wider and better spread of ba nking facilities. 3. 0 Introduction After the Enron, WorldCom, and Xerox scandals, there has been increasing demand for more disclosures, especially in non- financial segment of the annual report. The need of greater transparency to disclosure the information in the financial statement has increasing more important over the year. Philip (2005), Transparency is defined as the public disclosure of reliable and timely information that enables users of that information to make an accurate assessment of a banks financial condition and performance, business profile, risk profile and risk management. Reliable and timely information mean that information disclosure in the annual report is reliable and can help the investors or any interested parties to make the decision in the timely manner. As for, relevance implies that the risk information meets the decision-making needs of the user of that information and timeliness is necessary to ensure the information is received at appropriate intervals and while it is still relevant. The same author states that reliable information tends to be information about past events, while information about future events is inherently unreliable. However the most relevant information for decision-making is future information and therefore a tension arises between relevance and reliability. Central to this is the issue of forward looking risk information which is potentially of great relevance, but which is also inherently unreliable. Risk management 3.1 Disclosure Regulation Debate Patrice Gelinas (2007), the information firms disclose through regulatory filings and voluntary communication bring into being a complex array of costs and benefits. For example, publicly disclosed information can attract investors as well as qualified employees, increase public profile, and permit benchmarking when competitors must similarly disclose. At the same time, producing information is costly because firms must, among other things, hire and equip information producers and release intelligence that can harm their competitive position. Hua Hwa Au Yong (2005), the disclosure of proprietary risk management information can put banks at a competitive disadvantage as valuable information is available to their rivals. Additionally, the cost of producing and providing information may be a significant burden for some banks. The prescriptive accounting treatments could bias banks decision- making towards the activity and instruments with the least costly regulatory outcome. For example, banks may simply decide to reduce the use of risk management instruments given the detailed disclosure requirements. Extent theory on voluntary disclosure shows that, absent market imperfections or externalities, firm managers have incentives to optimally trade off the costs and benefits of voluntary disclosure, and to provide the efficient level of information to investors in the economy (Healy and Palepu, 2001). A single efficient amount of disclosure exists when disclosure costs increase at an increasing pace and benefits increase at a decreasing pace as the amount of disclosure a firm releases augments. Similar assumptions are widespread (e.g. refer to Admati and Pfleiderer, 2000) and seem reasonable. For example, if regulators mandated public disclosure of detailed itemized inventory up to, say, the number of paper clips at every employees desk, this extra disclosure would probably generate minimal incremental benefits because of its limited value for investors. However, the costs associated with preparing this information in terms of labor hours, additional pages of printed information, and loss of intelligence to competitors, to name but a few, would certainly be exponential. Philip (2005), state that it is important to note that disclosure itself will not create transparency unless it is disclosure of useful information. Immaterial risk information need not be published as, by definition, this is information that would not influence the users decision. Three theoretical arguments support disclosure regulation in favor of investors and any interested parties. First, Leftwich (1980) and Beaver (1998) note that regulation increases economic efficiency because market failures in disclosure could lead to underproduction of information. Failures arise because existing shareholders pay for the production of information disclosure, but cannot charge potential shareholders who free-ride on the information. Second, the same authors note that it can reduce the information gap between informed and uninformed investors, a purpose that simply redistribute wealth between different shareholder strata. Linsmeier (2002), information gap refers to information asymmetry that exists between a firms insiders and outsiders. An information gap reduces firm value due to high monitoring and bonding costs. Managers can increase firm value by narrowing the information gap between banks, investors and other stakeholders via disclosure of value information. Thi rd, Coffee (1984) and Mahoney (1995) argue that it leads to efficient and liquid securities markets because it reduces information asymmetry between investors and managers to solve the agency problem. Keryn Chalmers (2005), derivative disclosures can reduce agency costs. Bank managers, as agents, may act in their own interest, with regulators and shareholders needing to restrict and monitor their behavior. Restriction and monitoring is achievable through the imposition of higher capital adequacy requirements, strict disclosure regulations, or higher expected returns to debt and equity capital providers. By disclosing derivative related information, bank managers are able to reduce agency costs. In contrast, Admati and Pfleiderer (2000, p. 479) summarize well the viewpoint of researchers who do not believe that disclosure regulation favors investors: If disclosure is good, why dont firms do it voluntarily? Regulation should not be necessary if disclosure is in the firms best interest. The need for disclosure regulation is further brought into question by the well-known unraveling results of Ross (1979), Grossman (1981), and Milgrom (1981), whereby lack of disclosure is taken to be bad news, forcing the informed party to reveal its information in equilibrium. If this is the case, again, regulation that requires that certain information be disclosed seems to be redundant. In short, the debate between proponents and opponents to disclosure regulation demonstrates that there is no consensus on its desirability for investors or on whether it increases economic efficiency. To the opposing, disclosure regulation is costly for investor it supposedly helps and, to the extent that managers pay is linked to the performance of the firm, it impacts managers pay negatively. Conclusion Disclosure debate Banks need to disclose minimum information as required by the regulator. In other words, banks are giving their right to choose not to disclose additional information. As thus, this may lead to complex array of costs and benefits. Although public disclosed additional information can attract more investors, but banks may choose to not disclose it as the cost of disclosure might be greater than it benefit. This why lead to complex of interest. Three theoretical arguments support disclosure regulation in favor of investors. First, the regulation increases economic efficiency. Second, it helps to reduce information gap between informed and uninformed investors. Lastly, it reduces information asymmetry between investors and managers. 3.2 Risk Disclosure Requirements Among the many new areas of interest that require disclosure in the annual report are matters relating to social and environmental obligations and the intellectual property of the company. Currently, such disclosures are still left to the discretion of the company in many countries and under varying guidelines issued by the authorities and accounting bodies. (Azlan Amran, Abdul Manaf Rosli Bin and Bin Che Haat Mohd Hassan, 2009) Below are some guideline and standards that which is issue for the banking sector. Basel II According to Bank Negara Malaysia, Malaysia will adopt the new capital accord- Basel II set by Basel committee. This Basel II is the revised international capital framework. The Basel II Framework describes a more comprehensive measure and minimum standard for capital adequacy that national supervisory authorities are now working to implement through domestic rule-making and adoption procedures. It seeks to improve on the existing rules by aligning regulatory capital requirements more closely to the underlying risks that banks face. The objective of this new framework is to emphasize on the need for refined measurement of risks, more efficient capital management and the adoption of sound risk management practices that will ultimately contribute to greater financial stability. This will to enhance the corporate governance framework, the robustness of the internal control systems, and to introduce greater transparency and market discipline. Currently bank in Malaysia is still follow the current accord issued in 1988, this Basel I has served as the international benchmark for capital adequacy assessment for banking institutions. Although this can achieved the desired results in terms of developing more well- capitalized banking institutions globally, however the rapidly change in the developments in financial market over the years, the existing accord may less effective. The new Basel Accord comprises three pillars. The first pillar provides a minimum capital measurement framework for credit and operational risks. In essence, the regulatory capital requirement is aligned more closely with the actual degree of underlying risk that the banking institution faces. It provides the capital measurement that has three options with different levels of complexities for both credit and operational risks to better reflect actual risk. The second pillar focuses on strengthening the supervisory process, particularly in assessing the quality of risk management in the banking institutions. The supervisory process aims to provide the mechanism to ensure that other risks such as concentration risks and market risks in the banking books being managed. Under such an environment, prudent lending such as that characterized by a high degree of portfolio diversification, could justify lower capital requirements. The third pillar specifies minimum disclosure requirements on capital adequacy to enhance market discipline. (Evidence from Bank Negara Malaysia, 2009) The adoption of the new accord is consistent with strengthening risk management capability. This not only can result in greater capital savings but the domestic banking system also can become more competitive and integrated with the global marketplace. However, Malaysia will adopt a two- phased approach for Basel II. Which mean that, the first phase will begin in January 2008 all the banks will adopt the standardized approach for credit risks and basic indicator approach for operational risk. The second phase will adopt by year 2010. IAS 30- Disclosures in the Financial Statements of Banks and Similar Financial Institutions The financial statements of banks and similar financial institutions are complying with all Financial Reporting Standards. According to Financial Reporting Standards, IAS 30 recognizes the uniqueness of bank and their different accounting and reporting needs. IAS 30 also encourages the presentation of a disclosure of a commentary on management and control of liquidity and risk. The objective of the IAS 30 is to prescribe appropriate presentation and disclosures for banks. The purpose of this is to provide users with appropriate information to assist them to evaluate the financial position and performance of banks and to enable them to obtain a better understanding of the special characteristics of operations of banks. Users of financial statement of banks will be interested in the liquidity and solvency and the risk related to the assets and liabilities recognized in the balance sheet including off balance sheet items. 4.0 Introduction The objective of this chapter is to describe the methodology to be used in conducting this study. This included the explanation on sample selected, data collection, method of analysis and hypothesis. 4.1 Sample Selected From the total number of twenty two licensed commercial banks in Malaysia only out of nine banks are locally own. Thus, only nine banks have been chosen as the sample size for this study. As this study only focus on risk management disclosure from Malaysia perspective. (Table 3) No. Name Local commercial bank Foreign commercial bank 1. Affin Bank Berhad x 2. Alliance Bank Malaysia Berhad x 3. AmBank (M) Berhad x 4. Bangkok Bank Berhad x 5. Bank of America Malaysia Berhad x 6. Bank of China (Malaysia) Berhad x 7. Bank of Tokyo-Mitsubishi UFJ (Malaysia) Berhad x 8. CIMB Bank Berhad x 9. Citibank Berhad x 10. Deutsche Bank (Malaysia) Berhad x 11. EON Bank Berhad x 12. Hong Leong Bank Berhad x 13. HSBC Bank Malaysia Berhad x 14. J.P. Morgan Chase Bank Berhad x 15. Malayan Banking Berhad x 16. OCBC Bank (Malaysia) Berhad x 17. Public Bank Berhad x 18. RHB Bank Berhad x 19. Standard Chartered Bank Malaysia Berhad x 20. The Bank of Nova Scotia Berhad x 21. The Bank of Nova Scotia Berhad x 22. United Overseas Bank (Malaysia) Bhd. x Table 3: List of Licensed Commercial Banks in Malaysia (Evidence from Bank Negara Malaysia, 2009) 4.2.0 Data Collection 4.2.1 Source of Data Source of information can be generally categorised into 2 categories namely the primary and secondary data. Primary data come from the original source and are collected especially to answer the particular research question. The method of collecting primary data normally is through observation, questionnaires, and interview. In the other hand secondary data are collected from various sources such as thesis, journals from library and internet, government sources, textbooks and various articles that are related to this study. As for this study, secondary data will be used as the sources of information and data for analysis. Choosing annual reports to examine to what extent the banks disclosed their risk due to (1) the annual reports is the main source for the investors to make investment decision, (2) easier to make comparison among banks by study their annual reports, (3) annual reports also is the secondary data that can gather from internet. Thus, this method is very useful for the purpose of this study. 4.2.2 Data Collected Annual reports for every single bank as listed on the Table 4 will be used to analysis the information on risks disclosed by the banks in their financial statements. Bank Annual Report 2007 Annual Report 2008 Annual Report 2009 Affin Bank Berhad (under Affin Holding Group) X Alliance Bank Malaysia Berhad (under Alliance Group Berhad) AmBank (M) Berhad (under AMMB Holding Berhad) CIMB Bank Berhad (under Bumiputra-Commerce Holding Berhad) X EON Bank Berhad (under Eon Capital Berhad) X Hong Leong Bank Berhad Malayan Banking Berhad Public Bank Berhad RHB Bank Berhad X Total 9 9 5 Table 4: Number of Commercial Banks Annual Report that able to download from Bursa Malaysia as at February, 28 2010. In reference to Table 4 above, total nine banks annual reports were able to downloaded from Bursa Malaysia for the period between 2007 and 2008. However, as for year 2009 only five of these reports were available in Bursa Malaysias website. The other four banks annual reports were not able to obtained due to the banks financial year end date is on 31 December (i.e. their financial reports for the year ended 2009 are still in the process of being audited). These banks are Affin Bank, CIMB Bank, EON Bank and RHB Bank. Nonetheless, for Public Bank even though its financial year ends date is on 31 December, the banks annual report was available in Bursa Malaysias website due to the fact that the companys annual general meeting was scheduled to be held on March 2, 2010. Among the banks, they have difference financial year-end. For example, RHB Bank Berhad has their financial year-end on 31 Dec, while Malayan Banking Berhad has their financial year-end 30 Jun, and Alliance Bank Malaysia Berhad has their financial year ended 31 March. As so, for the purpose of this study, three years time period taken as the reasonableness time period for this study. In reference to Table 5, out of the total of nine local commercial banks, two banks having financial year-end on 31 March. Whilst another two banks having financial year- end 30 Jun and the rest having financial year- end on 31 December. Bank Financial year- end on 31 March Financial year-end on 30 Jun Financial year- end on 31 December Affin Bank Berhad Alliance Bank Malaysia Berhad AmBank (M) Berhad CIMB Bank Berhad EON Bank Berhad Hong Leong Bank Berhad Malayan Banking Berhad Public Bank Berhad RHB Bank Berhad Total 2 2 5 Table 5: Banks List with Year-end which differs. 4.2.3 Method of analysis (Analysis Technique) Information that was disclosed in the banks annual report can be qualitative (non financial) and quantitative (financial). Hue Hwa Au Yong (2005), point out that qualitative information consists of management objectives and strategies, discussion of risks and management method, while as for quantitative information consists of notional amount, market value data, risk weighted asset computation, gross current credit risk, and liquidity risk and others risks . For the purpose of this study, it is focuses on the qualitative part of annual reports, as Amran (2006), indicated that from an earlier study have shown that most of the disclosures are qualitative in nature and concentrated in the chairmans statement. Information to be disclosed is a matter of judgments. Hence, guideline from Financial Reporting Standards in Malaysia will take as guidance to examine the level of compliance among commercial banks in Malaysia. Descriptive analysis is use for this study. The bank annual report will downloaded from Bursa Malaysia website. To locate the a bank disclosure of risk, the Find option in Adobe PDF was used to search key word such as risk, credit risk, interest rate risk, liquidity risk, foreign risk and operation risk. Then I will seize the content of risk in a statement from the banks annual reports and study the type of risk they disclosure examine whether it is voluntary disclosure or mandatory disclosure. I believe that with used of take the content and put in a statement and examine the level of compliance, I will be able to gather accrual result from the study. 4.3 Hypothesis Hypothesis 1: H0 = Interest rate risk disclosure was favored as compared to credit risk. H1 = Interest rate risk disclosure and credit risk are equally disclose in banks financial statement. Hypothesis 2: H0 = The commercial banks disclosed both mandatory and voluntary risk information. H1 = The commercial banks disclosed only mandatory risk information. Hypothesis 3 H0 = All commercial banks in Malaysia disclosed financial risk management objectives and policies. H1 = Not all commercial banks in Malaysia disclosed financial risk management objectives and policies. Hypothesis 4: H0 = The commercial banks in Malaysia comply with Financial Reporting Standards in Malaysia. H1 = The commercial banks in Malaysia do not comply with Financial Reporting Standards in Malaysia. 4.4 Conclusion The risk management disclosure level categorize into few type of risk; credit risk, interest rate risk, foreign exchange risk, liquidity risk, and operating risk. Among those types of risks some banks disclosed in their annual reports while some of the banks do not disclose it. Out of twenty two commercial banks in Malaysia only nine banks have been chosen for this study, as this study only focused on risk management disclosed from Malaysia perspective. This project will be conduct by descriptive analysis, study the note to account that disclose in the annual reports for the banks, and to examine the level of compliance to FRS 132. Nevertheless, the study only focuses on the non- financial section or the narrative part of the annual report. 5.0 Introduction 5.1 Research question The purpose of this paper is to determine the extent of which commercial banks in Malaysia are providing risk management disclosure suggested under FRS 132. Research question 1: Which type of risk more likely to be disclosure by banks? Type of risk Number of company disclose (percent) Number of company do not disclose (percent) Total Operational risk Credit risk Liquidity Risk Market risk: Foreign Currency Exchange Risk Interest Rate Risk Equity Risk Research question 2: Do the commercial banks in Malaysia disclose financial risk management objectives and policies? Listed Bank (percent) Non Listed Bank(percent) Total Financial Risk management statement and policy Yes No Total Table 6: This table reports the number of banks providing financial risk management and policy Research question 3: Do commercial banks provided additional voluntary disclosure?

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What You Don't Know About Essay Samples on the American Dream Could Be Costing to More Than You Think If You Read Nothing Else Today, Read This Report on Essay Samples on the American Dream First experience is going to be my final experience. The mall will also end up being a challenge for people who don't wish to cover parking, since it will charge $24 to park for eight hours, reports CBS New York. By looking at America today, the most effective nation in the planet, the dream has literally come to be a reality. This dream has drawn many individuals to the usa, a society that's been historically based on capitalism. Urban sprawl has turned out to be an insufficient use of land that has damaging impacts on an increasing list of issues. The suburban lifestyle has gotten so incorporated into the perfect American method of life that urban sprawl is now widespread. You've got to set a lot of seeds in the floor and be 100 percent committed to reaching your target. What defines success is surely not only the crowd. The American dream was stolen. Though it is possible to accomplish the American dream for few. You need to make sure you aren't forcing yourself to live the dream of someone else because everyone's American dream is distinctive and different. To produce your own American Dream, you must look inwards and define those things in life which are most important to you. It's impossible to say why folks change their minds, because everybody has a different and they need to trust in what they would like to. All these things we start to twist the gospel into something that it's not. The times still require an outstanding rock band (with synths) that could tap into the anxieties of contemporary life while at the same time dancing the night away. It's very clear that the dream hasn't been actualized since the projected objectives have never been achieved. A significant part of the American Dream is education. If you believe that this is quite a huge endeavor. Imitate them in your life, and you'll be equipped to thrive and succeed. The Do's and Don'ts of Essay Samples on the American Dream There's, clearly, a limit on the range of pages even our very best writers can produce with a pressing deadline, but usually, we figure out how to satisfy all the clients seeking urgent assistance. It is obvious to find the very long journey John had been through to be able to achieve what he did. Parks had every reason to feel he was a main beneficiary. If you don't have sufficient time and you're worried that the submission date is close. Especially if you're not vegan, and don't have any idea you simply purchased a vegan meal. Nor everybody in the world will possess the very same opinion on one certain thing. The truffle oil had a great deal of flavor to the point at which it was too much. It turned out to be a nice place simply to hang. The Ultimate Approach for Essay Samples on the American Dream In general, the American Dream exists for straight, White men, as that's top tier privilege, but it doesn't exist for those people who are poor, individuals who are women, individuals who are Black, those that are people of color. Entrepreneurs, on the flip side, cannot start up their ideas. Media tells us not to consider the monster and instead to stay centered on the dream. Men and women come from all around the place really. American dream has an important part in defining the authentic meaning of freedom, equality and liberty. American dream essay can be regarded as a paper of private reflection to supply sufficient arguments about the term itself. Class mobility and the possibility for everybody, irrespective of social class, to be successful in American culture are at the center of the American Dream mythology. The truth is society utilizes the hope of immediate wealth to earn people work harder. The New Angle On Essay Samples on the American Dream Just Released A race to find out who can purchase the fastest car, biggest house, or the latest designer clothes. You may also secure a variety of discounts on our site which will help you to save some more money for future orders or anything you want to spend them on. I felt that I was able to do better. The government s hould protect the folks from domestic and worldwide threats. The web capital worth of the whole black community in the usa is zero. It appears as if everyone that seems to be helping them is in reality attempting to screw them from funds or money that they don't even have yet. The debt-free men and women are the rich who have many small business operations throughout the nation.

Negative Effects of Classism - 803 Words

Negative Effects Of Classism Have you ever been judged by the way you look or act? How about just for your income? Social classes have existed for many centuries, whether you are rich or poor, there has always been a large group of people who share a similar economic and/or social position. In society, citizens are put into classes based upon their income, wealth, property ownership, and job status. When citizens are put into a â€Å"class† whether it is high or low, it affects their way of life. For example; when the working class feels like they’re not good enough, it might be because someone in the higher class is acting ignorant or superior towards the lower class. When citizens are not treated equally due to their social status, this is†¦show more content†¦The middle class is a set of workers who are quite educated, wise, and overall more successful than the working class. The middle class is considered the average or the suitable of the three main classes, mostly because they make a much higher salary than the working class but not enough to be considered the higher class. The middle class is the majority of people in the United States. Occasionally the middle class consider thoughts and assumptions that the sociability of this country towards them are true which leads them to believe it and as well as act it out towards others. The reimbursements or the â€Å"benefits† of being in the middle class provide access to health care benefits such as Medicare or medicate, a home that’s stable enough to live in, a great secure job, as well as retirement security for the seniors of this class and most importantly many chances of a good education which comprises a college education as well. Since million of the households in this country are in the middle class, it’s hard to discriminate or judge against a class where a majority of the United States citizens in are in or close too. The â€Å"higher class† in America consists of people who have mostly inherited their money. Historically in some cultures, members of an upper class often did not have to work for a living, as they were supported by earned or inherited investments. The main distinguishing feature of upper classShow MoreRelatedThe Effect Of Media On Classism1484 Words   |  6 PagesBrittany A Brooks The Effect of Media on Classism University of Central Missouri â€Æ' The Effect of Media on Classism Class and the Media The United States was built on the concept of the American dream. The idea that anyone can achieve success if they just work hard enough and are determined enough is very lucrative. 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Corporate Accounting Assignment - Myassignmenthelp.com

Questions: On 1 July 2015, Victoria Ltd acquired 70% of the shares of Melbourne Ltd for $526,000 on a cum div. basis. Victoria Ltd had acquired 30% of the shares of Melbourne Ltd two years earlier for $180,000. This investment, classified as an available-for-sale investment, was recorded at a fair value on 1 July 2015 of $226,000. At 1 July 2015, the equity and liability sections of Melbourne Ltds statement of financial position showed the following balances: Share Capital 460,000 General Reserve 50,000 Retained Earnings 100,000 Other liabilities 100,000 Dividend payable 30,000 At acquisition date, all the identifiable assets and liabilities of Melbourne Ltd were recorded at amounts equal to fair value except for: Carrying Amount Fair Value Land 95,000 100,000 Vehicle (@ cost 40,000) 35,000 39,000 Equipment (@ cost 420,000) 294,000 309,000 Inventory 98,000 101,00 The Vehicle, which was estimated to have a further four year life at acquisition date, was sold on 1 January 2018. The equipment had a further five year life at acquisition date and was expected to be used evenly over that time. Any adjustments for differences between carrying amounts at acquisition date and fair values are made on consolidation. Melbourne Ltd had not recorded an internally developed patent. Victoria Ltd valued this patent at $90,000 and was assumed to have a ten year life. In May 2017, Melbourne sold this patent to an external party for $100,000. It also had a contingent liability of $19,000 that Victoria Ltd considered to have a fair value of $15,000. This liability was settled in July 2017. The dividend liability was paid on 1 September 2015. All inventories on hand at acquisition date were sold by June 2016. The land was sold on 1 June 2018 to Peters Ltd. Any valuation reserves created are transferred on consolidation to retained earnings when assets are sold or fully consumed. On 30 May 2017, Melbourne Ltd transferred $8,000 from the general reserve (pre-acquisition) to retained earnings. A bonus dividend of $10,000 was paid in December 2017 out of pre-acquisition profits. Goodwill was tested annually for impairment. For the year ended 30 June 2017, an impairment loss on goodwill of $4,000 was recorded. Additional information: (i) Melbourne Ltd sold a warehouse with a carrying amount of $82,000 to Victoria Ltd for $100,000. The transaction took place on 1 January 2017. Victoria Ltd charges depreciation at 5% p.a. on a straight-line basis. (ii) On 31 March 2017, Victoria Ltd sold some land to Melbourne Ltd. The land had originally cost Victoria Ltd $64,000, but was sold to Melbourne Ltd for $63,000. To help Melbourne Ltd pay for the land, Victoria Ltd gave Melbourne Ltd an interest-free loan of $29,000. Melbourne Ltd has as yet made no repayments on the loan. (iii) In April 2017, Victoria Ltd sold inventory to Melbourne Ltd for $12,000, at a mark-up of 20% on cost. One quarter of this inventory was unsold by Melbourne Ltd at 30 June 2017. The remaining inventory was sold in the following three months. (iv) On 1 October 2017, Victoria Ltd issued 1,000 15% debentures of $100 at nominal value. Melbourne Ltd acquired 400 of these. Interest is payable half-yearly on 31 March and 30 September. Accruals have been recognised in the legal entities accounts. (v) On 18 February 2018, interim dividend was paid by Melbourne Ltd from profits before acquisition date. The final dividend was from current year profits. Shareholder approval is not required in relation to dividends. (vi) On 1 April 2018, Melbourne Ltd transferred an item of plant with a carrying amount of $32,000 to Victoria Ltd for $41,000. Victoria Ltd treated this item as inventory. The item was still on hand at the end of the year. Melbourne Ltd applied a 20% depreciation rate to this plant. (vii) During the year ending 30 June 2018, Melbourne Ltd sold inventory to Victoria Ltd for $60,000, recording a before-tax profit of $16,000. One quarter of this inventory was unsold by Victoria Ltd at 30 June 2018. (viii) The tax rate is 30%. On 30 June 2018 the trial balances of Victoria Ltd and Melbourne Ltd were as follows: Victoria Ltd Melbourne Ltd Cost of sales 338,000 307,000 Other expenses 80,000 72,000 Income tax expense 41,000 40,000 Interim dividend paid 21,000 14,000 Final dividend declared 22,000 15,000 Cash 181,000 105,000 Dividend receivable 20,000 - Other receivables 206,000 227,000 Inventory 244,000 132,000 Deferred tax assets 35,000 - Trucks 82,000 72,000 Plant equipment 648,000 380,000 Land 130,000 123,000 Warehouses 180,000 90,000 Debentures in Victoria Ltd - 40,000 Shares in Melbourne Ltd 722,000 - Goodwill 74,000 30,000 Loan to Melbourne Ltd 29,000 - 3,053,000 1,647,000 Sales 480,000 437,000 Other revenue income 79,000 56,000 Share capital 874,000 470,000 Share options 80,000 - General reserve 84,000 72,000 Retained earnings (1/7/2017) 490,000 228,000 Final dividend payable 22,000 15,000 Current tax liabilities 8,000 12,000 Other liabilities 96,000 60,000 Debentures 400,000 - Loan from Victoria Ltd - 29,000 Accumulated depreciation P E 388,000 228,000 Accumulated depreciation Trucks 25,000 22,000 Accumulated depreciation Warehouses 27,000 18,000 3,053,000 1,647,000 Required Prepare the acquisition analysis as at 1 July 2015. Consequential errors will be penalised. 2016.Prepare the BVCR and pre-acquisition worksheet entries ONLY as at 30 June 2016. Journal entry 1 tick for each correct line entry i.e. correct account description AND amount (NO TICK for correct description only or correct amount only.) Consequential errors will not be penalised. 2018. Prepare full consolidation worksheet entries as at 30 June 2018. Journal entry 1 tick for each correct line entry ie correct account description AND amount (NO TICK for correct description only or correct amount only.) Consequential errors will not be penalised. Answers: 1. Acquisition Analysis as on 1st July,2015 using Partly Goodwill Method:- Net Fair Value of Identifiable Assets Liabilities As on 1st July, 2015 Particulars Amount Amount Amount Liabilities (A) Equity Share Capital 460000 General Reserve 50000 Retained Earnings 100000 TOTAL 610000 Difference Of Carrying amount Fair Value of the Assets (B) Fair Value Carrying Amount Inventory 100000 95000 5000 Vehicles 39000 35000 4000 Equipments 309000 294000 15000 Inventory 101000 98000 3000 TOTAL 27000 Net Fair value of Identifiable Assets Liabilities (A+B) 637000 Goodwill Estimation as per Partly Goodwill Method :- Particulars Amount Amount Consideration Transferred ( C ) : Value of Acquisition 526000 Less:30% of Dividend Payable 9000 517000 Non Controlling Interest ( D ) 191100 (30% of Net Fair Value) TOTAL (C+D) 708100 Less: Net Fair Value 637000 Goodwill of Victoria Ltd. 71100 2. BVCR Pre-Acquisition Journal Entries:- In the Books of Victoria Ltd. Journal Entry Date Particulars Amount Amount Dr. Cr. Business Combination Entries :- Land A/c. (Fair Value - Carrying Amount) Dr. 5000 To, Deferred Tax Liability A/c. (@30%) 1500 To, Business Combination Valuation Reserve A/c. (Balance) 3500 Accumulated Depreciation on Vehicles A/c. (Cost - Carrying Amount) Dr. 5000 To, Vehicle A/c. [Acc. Dep. - (Fair Value - Carrying Amount)] 1000 To, Deferred Tax Liability A/c. (@30% ) 1200 To, Business Combination Valuation Reserve A/c. (Balance) 2800 Depreciation Expense A/c. [(Fair Value - Carrying Amount)*1/4) Dr. 1000 To, Accumulated Depreciation on Vehicle A/c. 1000 Deferred Tax Liability A/c. (30% on Dep. On Vehicle) Dr. 120 To, Income Tax Expense A/c. 120 Accumulated Depreciation on Equipments A/c. (Cost - Carrying Amount) Dr. 126000 To, Equipment A/c. [Acc. Dep. - (Fair Value - Carrying Amount)] 111000 To, Deferred Tax Liability A/c. (@30% ) 4500 To, Business Combination Valuation Reserve A/c. (Balance) 10500 Depreciation Expense A/c. [(Fair Value - Carrying Amount)*1/5) Dr. 3000 To, Accumulated Depreciation on Vehicle A/c. 3000 Deferred Tax Liability A/c. (30% on Dep. On Vehicle) Dr. 450 To, Income Tax Expense A/c. 450 Patent A/c. Dr. 90000 To, Deferred Tax Liability A/c. (@30%) 27000 To, Business Combination Valuation Reserve A/c. (Balance) 63000 Business Combination Valuation Reserve A/c. Dr. 10500 Deferred Tax Liability A/c. (@30%) Dr. 4500 To Contingent Liability A/c. 15000 Cost of Sales A/c. (Fair Value - Carrying Amount) Dr. 3000 To Income Tax Expense A/c. (@30%) 900 To Transfer from Business Combination Valuation Reserve A/c. (Balance) 2100 Transfer from Business Combination Valuation Reserve A/c. Dr. 2100 To, Business Combination Valuation Reserve A/c. 2100 Pre- Acquistion Entry on 1.07.2016:- 01.07.16 Retained Earnings A/c Dr. 70000 Share Capital A/c Dr. 322000 General Reserve A/c Dr. 35000 Goodwill A/c. (Balance) Dr. 49020 Business Combination Valuation Reserve A/c. Dr. 49980 To, Shares in Melbourne Ltd.A/c.. 526000 3. Consolidated worksheet Journal Entries Amount Amount Date Particulars Dr Cr Equipment Design 15000 Deferred ax liability 9400 Business combination value reserve 5600 Amortisation expense 1500 Retained earnings (1/7/2018) 3700 Accumulated amortisation 5200 (1/10*13000 ) Deferred tax liability 1200 Income tax expenses 800 Retained Earnings (1/7/2018) 400 Depreciation expense 850 Profit on Sale of machinery 2550 Income tax expenses 1000 Retained earnings (1/7/2018) 1500 Transfer from business combination Valuation of reserve 4100 (Depreciation is 1/5*6000 p.a) Accumulated impairments losses-goodwill 12000 Goodwill 12000 Goodwill 30000 Business combination valuation reserve 30000 Pre-acquisition entries Retained earnings (1/7/2016) 18000 Share capital 470000 Other reserves 25000 Other components of equity (1/7/2016) 10000 Business combination valuation reserve 6000 Goodwill 30000 Shares in Melbourne ltd 559000 NCI share of changes from equity 1/7/2016 to 30/6/2018 NCI profit share 9510 NCI 9510 NCI dividend 1250 Dividends Paid 1250 NCI 1000 Dividends declared 1000 Transfer from other reserve funds 500 Transfer to retained earnings 500 Share capital 7000 Other reserves and bonus issues 7000 Transfer from business combination 1000 valuation reserve Business combination valuation reserve 1000 Dividends Paid Dividends revenue 5000 Dividends declared 5000 Dividends payable 3500 Dividends receivable 3500 Sale of plant Victoria ltd to Melbourne ltd Retained earnings (1/7/2018) 2500 Deferred tax assets 1500 Plant 5000 NCI effect NCI 600 Retained earnings (1/7/2018) 600 Depreciation Accumulated depreciation 1200 Retained earnings (1/7/2018) 600 Depreciation expense 600 Income tax expense 150 Retained earnings (1/7/2018) 150 Deferred tax 3000 Profit from opening inventory Retained earnings 450 Income tax expense 500 Cost of sales 950 sale of inventory: current period Sales 15000 Cost of sales 12500 Inventories 2500 Deferred tax assets 250 Income tax expense 250 Reference list Abuaddous, M., Hanefah, M.M. and Laili, N.H., 2014. Accounting standards, goodwill impairment and earnings management in Malaysia.International Journal of Economics and Finance,6(12), p.201. AbuGhazaleh, Naser M., Osama Musa Al-Hares, and Ayman E. Haddad. "The value relevance of goodwill impairments: UK evidence."International Journal of Economics and Finance4, no. 4 (2012). Argyrou, Argyris. "Auditing Journal Entries Using Extreme Value Theory."Auditing7 (2013): 1-2013. Avallone, Francesco, and Alberto Quagli. "Insight into the variables used to manage the goodwill impairment test under IAS 36."Advances in Accounting31, no. 1 (2015): 107-114. Jarva, Henry. "Economic consequences of SFAS 142 goodwill write offs."Accounting Finance54, no. 1 (2014): 211-235. Kim, Sohyung, Cheol Lee, and Sung Wook Yoon. "Goodwill accounting and asymmetric timeliness of earnings."Review of Accounting and Finance12, no. 2 (2013): 112-129. Matemilola, Bolaji Tunde, and Rubi Ahmad. "Debt financing and importance of fixed assets and goodwill assets as collateral: dynamic panel evidence."Journal of Business Economics and Management16, no. 2 (2015): 407-421. Stallman, Adam Thomas, and Larry William Youngren. "Journaling database changes using minimized journal entries that may be output in human-readable form." U.S. Patent 8,447,725, issued May 21, 2013. Answers Reference list