Background Of Kurnia Insurance Accounting Essay

Published:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

One of the major components in Malaysian Financial Reporting Standard 101 is financial statements. The financial statements are a structured representation of the financial position and financial performance of an entity. The objective of financial statement is to provide information about the financial position, financial performance and cash flow of an entity that is useful to a wide range of users in making economical decisions. Financial statements also show the result of the management's quality of the resources delegated to it. To meet the objective, financial statements provide information about an entity's:

Assets;

Liabilities;

Equity;

Income and expenses, including gains and losses;

Contributions by and distributions to owners in their capacity as owners; and

Cash flow.

A complete set of financial statements comprises:

A statement of financial position as at the end of the period;

A statement of comprehensive income for the period;

A statement of changes in equity for the period;

A statement of cash flows for the period;

Notes, comprising a summary of significant accounting policies and other explanatory information; and

A statement of financial position as at the beginning of the earliest comparative period when an entity applies an accounting policy retrospectively or make a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements.

An entity may use titles for the statements other than those used in this standard.

There are some general features that must be obeys by every financial reports according to MFRS 101.

Fair presentation and compliances with MFRSs

Financial statements shall present fairly the financial position, financial performance and cash flow of an entity. Fair presentation requires the faithful representation of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the MFRSs.

Going concern

When preparing financial statements, management shall make an assessment of an entity's ability to continue as a going concern. An entity shall prepare financial statements on a going concern basis unless management either intends to liquidate the entity or to cease trading, or has no realistic alternative but to do so. The entity shall disclose every uncertainties and facts that may cause the entity cannot prepare the financial statement with going concern.

Accrual basis of accounting

An entity shall prepare its financial statements, except for cash flow information, using the accrual basis of accounting. When the accrual basis of accounting is used, an entity recognises items as assets, liabilities, equity, income and expenses when they satisfy the definitions and recognition criteria for those elements in the MFRSs.

Materiality and aggregation

An entity shall present separately each material class of similar items. An entity shall present separately items of a dissimilar nature or function unless they are immaterial.

Offsetting

An entity shall not offset assets and liabilities or income and expenses, unless required or permitted by MFRS.

Frequency of reporting

An entity shall present a complete set of financial statements at least annually. When an entity changes the end of its reporting period and presents financial statements for a period longer or shorter than one year, an entity shall disclose.

Comparative information

An entity shall disclose comparative information in respect of the previous period for all amounts reported in the current period's financial statements, except when MFRSs permitted or required not to do so. An entity shall include comparative information when it is relevant to an understanding of the current period's financial statements.

Consistency of presentation

An entity shall retain the presentation and classification of items in the financial statements from one period to the next unless it is apparent, following a significant change in the nature of the entity's operations or a review of its financial statements, that another presentation would be more appropriate having regard to the criteria for the selection and application of accounting policies in MFRS 108 or MFRS requires a change in presentation.

B)Explain the background of the company.

Background of Lonpac Insurance Bhd.

Lonpac Insurance berhad is incorporated in Malaysia on July 1994, which is the name, is shortcut from London & Pacific Insurance Company Berhad. In 1 may 1999, Lonpac insurance become the general insurance business. The company operates of 21 branches in Malaysia and also have foreign branch in Singapore. The paid-up capital of the company is RM 200,000,000 comprising of 200,000,000 ordinary shares of RM 1.00 each. In September 2005, Lonpac has reaffirmed by Rating Corporation berhad to be general insurance strength rating "AA" because reconfirming its reliability and financial stability in the insurance industry. Besides that, in September 2011, the A.M. Best Co. has affirmed the financial strength rating of "A-" and issuer credit rating (ICR) of "A-" to Lonpac, because lonpac is ability to gain market share underwriting performance and regardless of the competitive operating environment in its core markets, namely Malaysia and Singapore.

Background of Kurnia Insurance

30th December 1978 is the incorporated of the Kurnia Insurans Berhad. The kurnia insurance company which is buys of present owners in 1991 it is in the present shape and has another name, industrial and commercial insurance. Kurnia insurance in Malaysia is the most of the successful insurance companies. The success can be founded from the fair of business practices which is offers business opportunities service and protect the legitimate interests of policyholders. With the total of capitalization between RM 600milion and the total asset around RM2bilion in the kurnia insurance stands as stability and strength. Besides that, kurnia also boasts the extensive into the social network in industry; with the annual turnover in excess of RM 1 billion and target force in 5500 the country. In the Malaysia insurance market, kurnia expect to rising unbridled competition already undertaker in several of protective measures. Kurnia firmly believes that e-commerce will bring Kurnia to a higher level of performance and quality of service to its customers, business partners and agents in line with its motto "Excellence in Service". One predominant move is strategizing towards e-commerce and seizing a prominent position by being the forerunner in providing online insurance services.

Writing Services

Essay Writing
Service

Find out how the very best essay writing service can help you accomplish more and achieve higher marks today.

Assignment Writing Service

From complicated assignments to tricky tasks, our experts can tackle virtually any question thrown at them.

Dissertation Writing Service

A dissertation (also known as a thesis or research project) is probably the most important piece of work for any student! From full dissertations to individual chapters, we’re on hand to support you.

Coursework Writing Service

Our expert qualified writers can help you get your coursework right first time, every time.

Dissertation Proposal Service

The first step to completing a dissertation is to create a proposal that talks about what you wish to do. Our experts can design suitable methodologies - perfect to help you get started with a dissertation.

Report Writing
Service

Reports for any audience. Perfectly structured, professionally written, and tailored to suit your exact requirements.

Essay Skeleton Answer Service

If you’re just looking for some help to get started on an essay, our outline service provides you with a perfect essay plan.

Marking & Proofreading Service

Not sure if your work is hitting the mark? Struggling to get feedback from your lecturer? Our premium marking service was created just for you - get the feedback you deserve now.

Exam Revision
Service

Exams can be one of the most stressful experiences you’ll ever have! Revision is key, and we’re here to help. With custom created revision notes and exam answers, you’ll never feel underprepared again.