Financial Reporting Disclosure: Evidence from Malaysian Non Profit Organizations
British Journal of Economics, Finance and Management Sciences, Vol. 4, No. 2, 2012
15 Pages Posted: 16 Oct 2012
Date Written: October 15, 2012
Abstract
This study examines the current state of financial reporting disclosure practices by 60 non-profit organisations that have registered under the Companies Commission of Malaysia (CCM). Subsequently, this study examined the factors influencing the non-profit organisations on their level of financial reporting disclosure. The results show that all non-profit organisations that submitted their annual reports for financial year ended 2010 prepared the Statement of Income and Expenditure, Balance Sheet and Cash Flow Statement although the level of financial reporting disclosure differs. The results also show that total revenues and total assets influencing the level of disclosure. Non-profits organization with high total assets and total revenue tends to disclosed more details items in the Income and Expenditure and Balance Sheet Account. This study provides initial understanding of the state of financial reporting practices that reflects the transparency and accountability practices among non-profit organisations in Malaysia.
Keywords: Financial terrorism, non-profit organisations, financial reporting disclosure, Malaysia
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