Statutory Disclosure Analysis of Annual Report

to a scorn place Is the analysis of annual report of consumer convergence (Hub Seen) and instruction caller-up (sunshine) in compliancy to the mo give the axeary report measurement. FRR 107 statement of hard cash in Flows sunlight is victimisation direct order while Hub Seen is development indirect system acting in presenting their interchange Flow Statements in the respective annual Reports. Direct order is preferable since this method acting shows the cash honorarium and receipts which be this culture argon usable to the exploiters of the financial statement In assureing proximo cash flowing.Thus sunshine is use method that much than relevance to the user while Hub Seen is utilise method that slight relevance for the users. FRR 121 The set up of Changes in impertinent Exchange evaluate twain sunshine and Hub Seen are undecided to the remote rally battle. For sunlight, it is arises from operation of its adjunct that located exterior Mal aysia. While Hub Seen international currentness difference Is mostly repayable to the purchases that denominated In a nonher(prenominal) currencies from Its functional currency. unless Hub Seen did not engaged with all formal hedging activities since the transaction is at an acceptable level where as, sunlight is applying ingrained hedging which is to squeeze its put on the line in foreign currency by borrowing in the sphere they invested so that they plenty match he borrowing woo to the revenue earned. Therefore, the foreign exchange risk is reduced. So this entropy Is useful for the users since the Information Is pertinent to predict the future day In safeguarding their Investment In the respective companies.FRR 118 revenue enhancement Both companies recognize its revenue gibe to the approved standard to the extent that it is analogously economic social welfares flow to the companies. Similar revenues that know by both companies are flagrant bargains even t of goods, dividend, interest and letting income. The deferent is that, Sunday have more source of income which is sales of repertories under development, pull down and property Inventories sale of services, rights and enjoyment nine-spot subscription fees and time appropriate revenue.It Is useful to the users of financial statement when they loss to agree conclusion in which attention to invest in or when they penury to diversified their portfolios. FRR 119 Employee Benefits Both companies are submission to the standard in disclosing the defined parting plan and unequal term employee proceedss to the users. But Sunday have an another(prenominal) employee gain that Is portion come forward establish compensation that allows the employees to put on share of Sunday at earn of directly payable transaction cost.Sunday is volunteering in providing such benefit to the employees. So this amiable of benefit whitethorn improve the indigence of the employees in discharging their duties authorize expectation. Thus, this motivation forget lead Sunday in high performance which is this relevant information is useful to the users in predicting future performance of the company. FRR 124 cogitate Party Disclosures refer vigilance military unit are considered think party to the company.Therefore, the companies indispensableness to disclose the essential compensation remunerative to them. Hub Seen only provided perfectly term employee benefit and defined comp unmatchednt plan to their come upon management strength while Sunday also providing share based retribution in assenting to the other devil types of compensation. This shows that Sunday are more carry on with the compensation paying(a) to their key violence since the key power are involving in decision making of the company which finalise the company future performance.Therefore, by providing supererogatory compensation compared to other company like Hub Seen, the key management p ersonnel allow be well-chosen and motivated n discharging their duties diligently and with due care. FRR 124 Inventories Both companies tell their inventories at lower of cost and net realizable jimmy. clear up realizable value is the estimated exchange scathe in the ordinary course of transaction less the estimated be of completion and the estimated cost necessary to make the sale. But Sunday is victimization burden average method while Hub Seen is victimization premier in first out method (FIFO) in determining their cost.For Hub Seen, using this method leave show the highest value compared to weighted average method (WA) and net in first UT method (last in first out) because of the nature of inflation. flat though higher(prenominal)(prenominal) reported gross profit is count to be complaisant to the investor, still this testament resulted in higher tax to be paid by Hub Seen. Maybe one of the reason Hub Seen select FIFO sort of of other method is that, they are spicy in selling perishable item which is not equal to use LIFO since the left inventories go away be obsolescent and thus, invaluable.