Financial Reporting Practices of Charity Organisations : A Malaysian Evidence

Using content analysis and interview setting, this study examines the current state of financial reporting of charity organisations in Malaysia. Specifically, this study examines the major issues and problems faced by these organisations in preparing their financial reports. Annual reports of 32 charity organisations were reviewed and the results show that there is a varying degree of reporting practices among them. The results show that although all charity organisations submitted their balance sheets to the Registrar of Society, only 60% of these organisations presented a cash flow statement and only 59% had their financial reports audited by external auditors. Further investigations indicate that there are problems faced by these organisations in preparing the reports such as lack of skilled accounting staff and high staff turnover. The findings of this study provide some understanding to the relevant authorities and the organisations themselves to overcome the problems related to the non-submission of annual reports as required by the Registrar of Society