The purpose of this report is to analyze and discuss the significance of the accounting principles and the qualitative characteristics of the accounting information of the selected company which is listed on Bursa Malaysia. With this regard Lafarge Malayan Cement Berhad (LMCB) is selected, then analyzed and evaluated how the accounting principles they have used and the qualitative characteristic of the accounting information is published in its annual report for the year 2011.By analyzing the annual report of Lafarge Malayan Cement Berhad (LMCB) its being found that they have applied basic accounting principles and has qualitative characteristics of accounting information which includes relevance and reliability as primary standards and comparability and consistency as secondary standards. The information included in the annual report is in such a way that the users of those information can verify company’s financial position as information is presented timely with feedback value and faithfully without bias. The information in the annual report can be compared with similar companies to make performance comparison over time as they have applied consistency in using accounting principles and standards.
1. Introduction of the company
In the Malaysian construction materials industry Lafarge Malayan Cement Berhad (LMCB) is the leader. It was incorporated in 1950.In 1953 LMC built its first cement plant in Rawang. In South-East Asia, Lafarge’s most essential markets are in Malaysia. In 2001 Lafarge first moved into the Malaysian Cement market via the acquirement of Blue circle, and today they are present in Aggregates, Concrete and Cement. Today LMCB is the Guardian of a group of companies in Singapore and Malaysia whose base businesses are in the sale and manufacturing of cement, ready-mixed concrete plus other related building materials. Lafarge is sited in 64 countries with 68,000 employees. Lafarge is a globe leader in building materials, with its highest- ranking positions in Aggregates, Concrete and Cement businesses. Lafarge placed sales of 15.3 billion Euros in 2011. With the world's leading building materials research facility, Lafarge places innovation at the heart of its priorities, working for sustainable construction and architectural creativity. Mission
Health & Safety is Lafarge Malayan Cement’s top operational priority. Their goal is to attain zero fatality and zero incident amongst employees, contractors, transporters and stakeholders who are involved in their operations. They also aspire to be one of the safest companies in Malaysia and in the industry. Vission
“Safety Our Way of Life” is their vision and is strengthen a culture where safety is a core value, where they respect each other, care for one another and excel in their actions. (Source. http://www.lafargemalayancement.com/)
Main area of business
LMC at present employs more than 1,200 people and run a nationwide network of facilities,In the Cement business which includes three incorporated cement plants in Langkawi, Kedah; Kanthan, Selangor, Perak and Rawang, a grinding plant in Johor, PasirGudang with supply channels by rail, sea and road. Products. In Malaysia, Lafarge Malayan Cement produces the following types of cement. They are: •Mascrete LH
•Ordinary Portland Cement
Lafarge Concrete Malaysia is one of the leading ready-mixed concrete companies in Malaysia with 34 batching plants throughout Peninsular Malaysia and East Malaysia. In its Concrete business, there are more than 34 ready-mixed batching plants throughout Peninsular Malaysia and East Malaysia with a workforce of more than 300 employees. Products. In response to the growing demand of high quality decorative and structural concrete solutions, Lafarge Concrete Malaysia has released a full range of innovative concrete products into the Malaysian market which includes: Agilia™ - A self-compacting...