ACC3014 Corporate Reporting Assignment Answers

Overview

The Group Assignment is developed as an integral part of the course to enable students to apply Malaysian Financial Reporting Standards (MFRS) in resolving accounting and financial reporting problems. The Group Assignment requires students to form groups of a minimum of FOUR (4) students up to a maximum of SIX (6) students. Each group shall be evaluated based on their ability to articulate arguments in support of their opinions and their ability to prepare a comprehensive written report.

Group Assignment Question (30%)

Part I

Assume that you are currently working as the Chief Financial Officer (CFO) in one of Malaysia’s public listed companies listed on the Bursa Malaysia Stock Exchange. Select one of the following companies as your employer and obtain a copy of the group annual report for the financial year ended 2024/2025.

1. Petronas Chemicals Group Berhad

Stock Name: PCHEM

Stock Code: 5183

Sector: Industrial Products & Services (Chemicals)

2. Tenaga Nasional Berhad

Stock Name: TENAGA

Stock Code: 5347

Sector: Utilities

3. Hong Leong Industries Berhad

Code: HLIND

Stock Code: 3301

Sector: Consumer Products & Services

4. Bumi Armada Berhad

Code: ARMADA

Stock Code: 5210

Sector: Energy/Oil & Gas Equipment & Services

5. CIMB Group Holdings Berhad

Stock Name: CIMB

Stock Code: 1023

Sector: Financial Services

Part II

The following is an article by the MIA Sustainability, Digital Economy and Services Team in MIA’s Accountant’s Today (2 October 2025) titled “Sustainability Meets Technology: Building Credible and Future-Ready Reporting”. The article discusses sustainability as a cornerstone that exerts increasing pressure on companies to report their Environmental, Social, and Governance (ESG) impacts transparently and effectively.

As sustainability becomes a cornerstone, companies are under increasing pressure to report their environmental, social, and governance (ESG) impacts transparently and effectively. With evolving regulatory requirements such as the National Sustainability Reporting Framework (NSRF) and growing stakeholder expectations, digital tools and technologies are playing a vital role in enhancing the quality and efficiency of sustainability reporting. But how equipped are organisations to handle this shift with the necessary tools and technologies?

Recently, experts gathered during the MIA Digital Month 2025 to explore this crucial topic on ‘Tools and Technologies for Sustainability Reporting in Malaysia’. With seasoned professional Steven Chong, Member of MIA Digital Technology Implementation Committee (DTIC) as moderator and an esteemed panel including

Adham Fayumi, Founder and CEO, Rymba; Karina Mohammad Nor, Director, Sustainability & Emerging Assurance, Audit & Assurance, Deloitte Business Advisory Sdn Bhd; and Nusaybah Mohamad Sufian, Senior General Manager, Group Financial Management & ESG Compliance, PETRONAS, the discussion shed light on the importance of leveraging effective resources, the role of accountants, and the role of technology in driving sustainability reporting forward.

Leveraging Innovations for Sustainability Reporting in Malaysia

Sustainability reporting has quickly emerged as a strategic imperative in Malaysia, propelled by rising global ESG expectations and evolving regulatory frameworks such as those from Bursa Malaysia. “It’s not just about compliance anymore,” said Adham Fayumi, highlighting a shift in mindset across the industry. Increasingly, businesses are moving beyond viewing sustainability reporting as a routine obligation and are instead embracing it as a tool for long-term planning value creation, and organisational transparency. This transformation is particularly significant, where organisations must now adopt advanced tools and technologies, such as AI, drones, satellite imaging, and data analytics, to ensure the accuracy, credibility, and relevance of their ESG disclosures. As the demand for robust sustainability practices intensifies, these innovations are becoming essential for accountants to track and manage ESG performance effectively and remain aligned with global standards.

The Role of Accountants in Driving Change

As highlighted by Nusaybah, integrating sustainability into financial reporting requires not just technical skills but also a mindset shift. This shift enhances the value accountants provide to their organisations and contributes to broader societal goals.

“Accountants are trained to measure and disclose, but sustainability demands more – strategic thinking and a shift in mindset. While frameworks like Global Reporting Initiative (GRI) focus on metrics, International Financial Reporting Standards Climaterelated Disclosures (IFRS S2) emphasises embedding climate risks and opportunities into decision-making. The journey begins with Enterprise Risk Management (ERM): when sustainability risks are integrated into ERM and the corporate risk profile, reporting gains credibility, and that credibility deepens when insights shape business strategy. Without strategic action, disclosures remain numbers. IFRS S2 links risk, strategy, and metrics, ensuring sustainability data drives decisions. Governance reinforces accountability, not just compliance. Accountants must evolve from measurers to enablers, because true sustainability reporting begins when data informs decisions and drives change,” added Nusaybah.

Technology’s Role in ESG Decision-Making

Achieving success in the sustainability and technology space requires a firm commitment to leveraging innovation for deeper insight and meaningful action. In doing so, organisations can contribute positively to both society and the planet, ensuring long-term value and ethical integrity. The panellists also explored how technology is becoming increasingly central to ESG strategies. Below are some of their key perspectives:

Finding the Right Mix of Disclosure and Privacy

In response to a question on the main challenges of sustainability reporting and its link to financial performance, Karina noted that companies often face a delicate balancing act between transparency and strategic disclosure. According to her, companies need to be open enough to build trust with stakeholders, like investors, suppliers, and employees, but they also have to keep certain strategic details under wraps, especially those that might affect their competitive edge. When disclosure is insufficient, stakeholders may doubt the company’s value and its commitment to driving meaningful impact. “Many studies suggest that companies with robust sustainability reporting tend to experience enhanced financial performance,” said Karina. This is largely because transparency fosters trust. A wide range of stakeholders, including potential business partners, are more likely to trust and engage with companies that are open about their operations. Transparency doesn’t just boost reputation; it boosts efficiency and can attract top talent. The key is to ensure that any qualitative data shared reflects true practices, avoids greenwashing, which can damage trust and credibility, and prioritises the critical elements that must be disclosed in a sustainability report.

Towards Smarter, Sustainable Reporting

With this approach, businesses in Malaysia can position themselves for long-term impact and credibility in the sustainability landscape. As sustainability reporting evolves, the integration of digital tools is becoming essential, not optional, for companies striving to meet both global expectations and local regulatory standards. Despite the challenges, growing momentum in sustainability reporting, rising stakeholder demand, and advanced technologies signal a promising path forward. As highlighted by the panellists, progress begins with practical steps:

Required

Prepare a 3,500-word report covering the following two parts:

Part I

Analyse the group’s annual report for the financial year ended 2024/2025. You are required to focus your analysis on how the parent company exercises control over its subsidiaries in accordance with IFRS 10/MFRS 10 Consolidated Financial Statements. Select two key subsidiaries to illustrate your discussion.

Part II

The integration of technology is transforming sustainability reporting from a compliance exercise into a strategic component of corporate reporting. Based on the article and other relevant sources, critically discuss the extent to which technology-driven sustainability reporting enhances the credibility and relevance of corporate reporting in Malaysia. In your discussion,

• explain why sustainability reporting, particularly when integrated with technology, is considered a contemporary accounting issue.
• evaluate the positive and negative implications of technology-driven sustainability reporting on the credibility and relevance of corporate reporting in Malaysia.

Experts Answers on Above Questions on Corporate Financial Reporting

Analysis of how Parent company exercises control over its subsidiary under IFRS10/MFRS10

The parent company usually consolidates subsidiaries where it has power over relevant activities, exposure to variable Returns and ability to use its powers as required by IFRS 10. It is mainly the shareholding pattern that allows control over the subsidiary, as it requires more than 50% voting rights, along with approval of strategic decisions, oversight of financial and operating policies. The parent company is responsible for preparing the consolidated financial statements.

Example using two subsidiaries

In respect to Tenaga Nasional Berhad, the two subsidiaries are TNB power generation sdn. bhd. and TNB renewables sdn. bhd. TNB power is a wholly owned subsidiary that accounts for electricity generation and the parent company controls the operational policies, capital expenditure and financial reporting. The second subsidiary is TNB renewables sdn bhd. that develops solar and renewable energy projects, and the parent company is responsible for determining the investment strategy, approval of major projects and consolidating financial performance.

Evidence of compliance with MFRS10

The consolidation of subsidiaries is achieved from the date when the control is obtained. It is also evident that the non controlling interests are presented separately within the equity, and there are uniform accounting policies followed across the group. There is complete elimination identified with respect to intragroup transactions and balances.

Why is technology enabled sustainability reporting and accounting issues?

It is an issue because the Bursa Malaysia ESG requirements and the national sustainability reporting framework requires comprehensive sustainability disclosures on the part of companies. With the help of technology like AI cloud platforms, drones, satellite imaging and data analytics, it is possible to improve ESG data collection and reporting. Accountance also makes sure to combine financial and non financial information to support strategic decision making rather than compliance alone.

Positive implication on credibility

With the use of AI, the benefits are in terms of reduction in reporting errors, real time monitoring improves data accuracy, data analytics enhances supporting ESG disclosures and technology is quite significant in reducing the risk of inconsistent sustainability reporting.

Positive implications on relevance

Stakeholders get the information on a timely basis, and with their application of predictive analytics it is possible to identify climate related risks. Decision makers can also include ESG metrics into business strategy, and the reports become highly useful for investors, regulators and lenders.

Negative implications on credibility and relevance

There is a possibility of algorithms providing wrong information if the data is incorrect and may lead to biases. There is also the threat of cyber security and high implementation cost for the SMEs. Employees need digital skills and the utilization of different reporting software makes it difficult to compare performance across companies.

Want Detailed Answers with References?

The analysis of the corporate reporting assignment above on MFRS 10 subsidiary control, consolidated financial statements and technology-driven ESG reporting in Malaysia revealed important findings which could benefit Malaysian companies in improving their performance. With our accounting assignment helpers, you can expect detailed analysis on any companies. Simply visit our assignment help Malaysia page to get a professional accounting expert, or you can also explore solved assignment answers from Sunway University before making a decision to hire our accounting experts.