DPA 10183

BUSINESS ACCOUNTING
 01 INTRODUCTION TO ACCOUNTING

COURSE 02 ACCOUNTING CLASSIFICATION

AND ACCOUNTING EQUATION
SYLLABUS
03 ACCOUNTING PROCESS AND
BOOKS OF ACCOUNTS

04 DOUBLE ENTRY PRINCIPLES AND

BALANCING OFF

05 TRIAL BALANCE

06 YEAR END ADJUSTMENT

FINANCIAL STATEMENTS WITH

07
YEAR END ADJUSTMENTS
 INTRODUCTION TO ACCOUNTING

Describe the
Define accounting and Discuss each types of functions of
bookkeeping accounting field regulatory bodies in
Malaysia
TOPIC 1.1 TOPIC 1.4 TOPIC 1.6

TOPIC 1.7
Explain the following
basic of accounting
concepts
TOPIC 1.2 TOPIC 1.5
Describe the users of Describe the
accounting approved accounting
information standards in Malaysia

TOPIC 1.3
Describe the roles of
an accountant
 1.1.1 Importance of accounting and bookkeeping

Management’s responsibility
in a large organization may be
To ensure that transaction complicated if transactions are
are recorded for future not recorded accurately.
reference Financial statements may
provided an inaccurate
description of a business.

To identify the financial position It is helpful in the

of an organization, that is evaluation of performance
whether It is making a profit or a and indicates the financing
loss and the necessary follow up implications of choosing
actions that should be taken one plan or project over
another
1.1.2 Differences between accounting and bookkeeping
BOOKKEEPING
Limited scope, involving
only the earlier stages
scope of the accounting process,
that is the identifying and
recording of transactions
in financial terms
To provide financial information
purpose to enable the accountant to
proceed with the remaining
stages of the accounting process.
ACCOUNTING
ACCOUNTING
Wider scope, including
Bookkeeping (identifying and
recording) plus analysing,
Interpreting, communicating,
planning and making decisions.
To produce financial statements
to enable users and interested
parties to make comparisons,
plans, forecasts and decisions.
1.1.2 What is accounting

Accounting is the process of

classifying recording summarizing reporting

interpreting analysing

Business activities into monetary units to

assist users of this information in decision making.
1.2 Users of accounting information

INTERNAL
INTERNAL EXTERNAL
EXTERNAL
USERS
USERS USERS
USERS
1.2 Internal Users

Human
Resources
Department
Marketing
Middle Level Department
Comprise the management of a
Management
business organization who use the
accounting information for internal
decision-making

Strategic
Planning
Top Level Department
Management
 1.2 External Users

Parties outside the business

organization who use the accounting
information for their specific needs.
1 Potential shareholders

Government Related
2 authority bodies

3 Creditors

4 Analysts

5 Public
1.3 Roles of an accountant

Budget business revenue

and expenses
Prepare and monitor
fundamentals accounting
entries to document and Prepare monthly
journalize the business’s sales and
source documents and purchase reports
books of the prime entry
Roles of An
Accountant

Check daily cash and Manage payroll

banking transactions reconciliations

Update the status of

accrued and prepaid
activities
1.3 Roles of an accountant

Ensure compliance with generally

accepted accounting principles and
company procedures

Review, investigate and correct

errors and inconsistencies in
financial entries, documents
and reports

Provide financial advice and

alert the management of any
risk-prone business
activities such as abnormal
increases in business
operations excessive
charges and potential
penalties
 1.4 Types of Accounting Field

FINANCIAL COST MANAGEMENT

ACCOUNTING TAXATION AUDITING
ACCOUNTING ACCOUNTING

Management /
Tax accountants Auditing involves
The main function Managerial The
are responsible for the examination
Is the original form of of cost accounting accounting is a responsibilities of
preparing and filing and verification of
accounting that is is to provide branch of the management
various tax forms company accounts.
related to the information to the accounting accountant include
and documentation prepared
preparation of management of the There are two designing and
as well as specifically for the
financial statements company to types of auditing, evaluating
determining the management team
for the use of external determine the total external and business
amount of taxes by management
users. cost or cost per internal auditing. processes,
payable by the accountants.
unit of the product preparing budgets,
company each
The main objective of or service preparing trend
year. It uses financial
financial accounting is analysis and ratio
to determine the profit The objective is to accounting analysis and
Tax accountants information to
or loss by a business help the forecasting
assist companies assist the
during the year and management in
to minimize the management to
show the financial cost control
taxes payable by making the
position of the applying various
business as at a policies, taking
tax planning decisions and
specific date strategies controlling various
business activities
of the company
 1.5 Accounting standards in Malaysia

1973 < 1997 1997 2001 2004 /8 2008

Roles
Roles of
of IASC
IASC was
was
taken
taken over
over byby the Accounting
Accounting standards
standards FRF
Set Roles
Roles of
of setting
setting in
in the FRF and
and MASB
MASB
Set up
up committe
committe –– International Acct issued
issued by
by MASB
MASB were
were
Once
Once approved
approved by
by Malaysia was taken
Malaysia was taken International Acct announced
announced full
full
International
International Stdt
Stdt Board
Board (IASB) renamed Financial
renamed Financial convergence
the councils of
the councils of over
over by
by Malaysian
Malaysian (IASB) convergence to IFRS
to IFRS
Accounting
Accounting Standard
Standard Accounting
Accounting Standards
Standards now
now known
known as as Int
Int Reporting
Reporting Standards
Standards by
by 1/1/2012
1/1/2012
MICPA
MICPA and
and MIA
MIA (FRS)
(FRS)
Committee
Committee (IASC)
(IASC) Board
Board (MASB)
(MASB) Financial Reporting
Financial Reporting
Standards
Standards (IFRS)
(IFRS)

The standards as part

Accounting International The standards were of its plan to align
Standards Accounting based on the IAS with with the IFRS. MASB
devised were Standards (IAS) were guidelines to deal had adopted the
known issued as Approved with local regulations IFRS and companies
International Accounting and areas not in Malaysia were
Accounting Standards as part of handled by IAS required to comply
Standards (IAS) generally accepted with these standards
accounting principles effective after
in Malaysia 1/1/2006.
 1.5 Accounting standards in Malaysia

11/2011 2014

MASB
MASB issued
issued the
the new
new MASB
MASB issued
issued the
the
accounting
accounting framework ––
framework Malaysia
Malaysia Private
Private
Malaysian
Malaysian Financial
Financial Entity Reporting
Entity Reporting
Reporting Standards
Reporting Standards Standards
Standards
Framework
Framework (MRFS)
(MRFS) (MPERS)
(MPERS)

Which was fully Which was effective

IFRS compliant. for the annual period
This framework beginning on or after
was effective on 1/1/2016
1/1/2012 and
applied by all
entries other than
private entities.
1.6 Function of Regulatory Standards in Malaysia

Malaysian Institute of Malaysian Accounting The Companies Commission Inland Revenue Board
Accountants (MIA) Standard Board (MASB) of Malaysia (SSM) (LHDN)

Statutory body formed as a The Inland Revenue Board of Malaysia

The accountancy (IRBM) is one of the main revenue collecting
result of a merger bet​​ween the
profession in Independent authority agencies of the Ministry of Finance.
Registrar of Companies (ROC) IRBM was established in accordance with the
Malaysia is governed to issue accounting
and the Registrar of Inland Revenue Board of Malaysia Act 1995
by the MIA through standards for the
Businesses (ROB) in Malaysia to give it more autonomy especially in
the power conferred purpose of Financial financial and personnel management as well
which regulates companies
by Accountants Act Reporting in Malaysia as to improve the quality and effectiveness of
and businesses. SSM came
1967h tax administration.
into operation on 16 April
2002.
1.7 Accounting Concepts

Historical cost Concept

Periodicity Concept Prudence Concept

Money Measurement Concept Consistency Concept

Objectivity Concept Matching Concept

Going Concern Concept Accrual Concept

Business Entity Concept Materiality Concept

THANK YOU