The Practice of Presentation of Financial Statements in Malaysian Annual Reports

Abstract

This research was conducted to examine the practices in financial statements and the use of language in annual reports presented by companies listed on Bursa Malaysia. This study was conducted in accordance with the Malaysian Financial Reporting Standards (MFRS) for the presentation of financial statements. A total sample of 180 companies from total population of 826 companies listed on Bursa Malaysia in 2012 was taken. All the samples have a complete financial statement from 2003 to 2012. The study found there were recent changes in practice and the use of the title as well as the use of accounting terminology in financial statements. The study also showed that the use of language in the company’s annual report still relies on the use of the English language. This study is important as a continuation of previous studies on the presentation of the financial statements and the use of language in the company’s reporting. Moreover, it would be a starting point for uniformity in the use of terms and the enforcement of accounting standards for language usage in the Malaysian company’s annual report. These outcomes make an incremental contribution to the existing literature by providing useful insights into our knowledge of language especially in emerging markets like Malaysia. The implications of the research findings and future research have been discussed.