a) Financial statements are a structured representation of the financial position and financial performance of an entity. Financial statements are written records that convey the business activities and financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes. Financial statements include: Statement of Financial Position, Statement of Profit and Loss (Other Comprehensive Income), Cash Flows Statements, Statement of Changes in Equity and Notes to Financial Statement. Financial statements are prepared based on:

(i) Conceptual Framework for Financial Reporting

(ii) Accounting / Financial Reporting Standards

i. State and explain THREE (3) fundamental qualitative characteristics and enhancing qualitative characteristics of accounting information that leads to provide useful accounting information and help investors to have better economic decision making.

(12 marks)

ii. Identify and describe the basic elements of financial information included in this Conceptual Framework.

(4 marks)

(b) One of the interesting issues that frequently has been analysed and discussed in the accounting field in recent years is on the implementation of International/Malaysian Financial Reporting Standard (IFRS/MFRS). In general, studies on IFRS/MFRS implementation found that IFRS/MFRS improves transparency and disclosure of financial information.

i) Explain the difference(s) between public and non-public companies in Malaysia in terms of accounting standard.

(2 marks)