The Most Trusted Provider Of Financial Services Accounting Essay

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Allianz officially stepped its first step in Malaysia in 2001 and it became the controlling shareholder of Allianz General Insurance Malaysia Berhad. In the year of 2007, the general insurance business of AGIM has been transferred to AGIC,which is a wholly-owned subsidiary. With the effect of the transferation ,AGIM changed its name to AMB and became an investment holding company, with a general insurance (AGIC) and life insurance (ALIM) subsidiary.

AGIC is one the dominating general insurer in Malaysia and has a wide range of services in personal lines such as business and large industrial risks. AGIC also influence on the bank assurance agreement with CIMB Bank to a high sum which is about over-a-million-customer base. The GWP for general insurance business in the year 2011 reached about RM 1.46 billion.

ALIM offers a comprehensive range of life,health insurance and investment-linked products.for In the year of 2011, ALIM successful make a record on a gross written premium ("GWP") of RM 1.14 billion and is one of the major growing life insurers in Malaysia.

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Generally,Allianz Malaysia aims to be the most trusted provider of financial services to suit the lifetime needs of Malaysians. The Company sees the vitality of sustainable growth in many ways such as the worldwide diversification, the decreasing of complexity, value-based management approach,employees and attaining customer satisfaction.

Company Name

Year 2004

Year 2011

Allianz Malaysia BHD

Balance Sheet as at 31 Dec 2004

Income Statement as at 31 Dec 2004

Statement of cash flow as at 31 Dec 2004

Statement of change in equity as at 31 Dec 2004

Statement of significant accounting policy

Statement Of Financial Position as at 31 Dec 2011

Statement Of Comprehensive Income as at 31 Dec 2011

Statement of cash flow as at 31 Dec 2011

Statement of change in equity as at 31 Dec 2011

Statement of significant accounting policy

MNRB Holding BHD

Balance Sheet as at 31 Dec 2004

Income Statement as at 31 Dec 2004

Statement of cash flow as at 31 Dec 2004

Statement of change in equity as at 31 Dec 2004

Statement of significant accounting policy

Statement Of Financial Position as at 31 Dec 2011

Statement Of Comprehensive Income as at 31 Dec 2011

Statement of cash flow as at 31 Dec 2011

Statement of change in equity as at 31 Dec 2011

Statement of significant accounting policy

Company Name

Allianz Malaysia BHD

MNRD Holding BHD

Year 2004

Goodwill

Goodwill means the good name and image of the company which is a fair values giving by social. And it is amount we cannot see and worth it. The date we start to recognition goodwill is estimated the useful life for the future which no more than 20 year. That is because goodwill is an intangible asset. Examples of intangible assets are goodwill, trademark, copyright and patent.

Revenue Recognition

Revenue recognition is an item help the company gain profit and increase the capital of company. Revenue is recognized when it was happened. This is base on the accrual concept.

The examples of revenue are interest income, rental income, and dividend income. All of these are recognized on the receipt base when all have been paid.

Property, Plant and Equipment

Property, plant and equipment is non-current asset because they useful life is more than one year. Example of property, plant and equipment are land, motor vehicle, office furniture, fittings and equipment and so on. Land is an important asset to help a company going continuous the business at the future so the amount present in balance sheet is state on valuation. Others non-current asset are state at the cost which deduct the amount of accumulated depreciation.

Intangible assets

Intangible assets are the term we can't see. It is infinity. And is like a reputation of a company. So we record the value at cost. Examples of intangible assets are goodwill, trademark, copyright and patent.

Revenue Recognition

Revenue recognition is when given service to other even haven picking up money from them. Base on accrual concept when the revenue is occur we should be recognized. The examples of revenue are interest income on loan, interest income on corporate debt securities, other interest income and investment income on Islamic investments, rental income, Dividend income, Al Wakalah, and so on.

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Property, plant and equipment

Property, plant and equipment is non-current assets because they are an asset which are useful life more than one year. Land as an asset is important to a business so the worth present in balance sheet is base on the historical cost without deduct the depreciation cost. Whereas the others Non-current asset should record the amount which are deduct the depreciation cost because the benefit of the asset is spread out to the user. Example of the property, plant and equipment are computer equipment, office equipment, furniture and fittings, motor vehicle and so on. Only the assets value above RM 100 will be record as capital expenditure. The amount below RM 100 will record as expenses in income statement.

Company Name

Allianz Malaysia BHD

MNRD Holding BHD

Year 2011

Cash and Cash Equivalents

Cash and cash equivalents is the cash on hand and balances with banks. The purpose of statement of cash flow is cash and cash equivalents are show on the net of bank overdrafts. Examples, investment income, change in other trade payable, change in other trade receivable, deposit and prepayment, coupon interest received and tax paid.

Disposal assets

When the investment assets disposal, the different between the proceed and the amount which is carry will recognized in the income statement as revenue when it is gain profit when disposal or as expenses when get loss. On the others hand when disposal the general business and shareholders fund , the amount which is remain will transfer to the income statement within life fund and the carrying value will recognized as an impairment loss. Example , disposal of land and building.

Depreciation

Depreciation is an allocation method to spread out the non-current asset economic useful life so that will match cost with the revenue earn. The reason we should depreciation is because the wear and tear of an assets, outdate of an assets , passage of time and depletion. Depreciation as an expense, we did not pay out money but we enjoy the benefit giving by non-current asset. The concept we should follow are accrual and matching concept. Allianz is use the straight line method to spread the cost of assets as follow:

Motor vehicles-20%

Office furniture, fittings and equipment-5% - 20%

Office renovations and partitions-10%

Cash and Cash Equivalents

Cash and cash equivalents is the cash on hand and balances with banks. Excluding fixed and call deposits with licensed financial institutions, which are too small hazard of changes in value. Indirect method is use for present the cash flow statement. Examples, impairment loss on asset, dividend income, purchase of others investment, decrease in others trade receivable and increase in others trade payable.

Non-current assets held for sale

When the investment assets disposal, the different between the proceed and the amount which is carry will recognized in the income statement as revenue when it is gain profit when disposal or as expenses when get loss. On the others hand when disposal the general business and shareholders fund, the amount which is remain will transfer to the income statement within life fund and the carrying value will recognized as an impairment loss.

Depreciation

Straight line method is used by MNRB Holding to depreciation the non-current asset. Depreciation is occur that is because the depletion, wear and tear on the asset, passage of time and obsolescence of the asset. MNRB Holding had set residual worth for the non-current assets. MNRB Holding use the straight line method to spread the cost as following:

Computer equipment-33 1/3%

Office equipment-15%

Furniture and fittings-15%

Motor vehicles-20%