World Wide Fund (WWF) Malaysia1.0 INTRODUCTION

1.1Non Profit OrganisationLike all organization, non- profit organizations vary much it terms of mission, size mode of operation and impact, particularly in a cross national sense. Some are closer to the model of a government agency, other may indeed resemble the business firm, and yet others may be little more than an informal network. These variations not withstanding however, there is an emerging consensus among researches in the field that non profit organization have the following core characteristic (Salamon and Anheir, 1997).a) Non- profit distributing not returning any profit generates to owner or equivalents, which distinguish non -profit from business.b) Voluntary- being non-compulsory in nature and with some degree of voluntary input either the agencys activities or management.c) Organised- processing some institutional reality, this separates the organization from informal entities such as families, gatherings or movement.With this definition at hand, we can then ask if the non profit form is intrinsically associated with distinctive features that lead to characteristic behaviour and outcomes. In fact, many writers have made such claims:, Kramer (1981) sees the essence of voluntary agencies, Hudson (1999) and Paton (1996) identify the value orientation of non-profit organization as their essential feature, Tonkiss and Passey (1999) suggests that trust and voluntarism are at the centre of non profit organization. Billis (1989) sees ambiguity as the essence of most non-profit organization, and Lohmann (1989) finds that the notion of the common is the key to understanding this type of organization. We buy goods of daily consumption from the general store of your locality, such as clothes from cloth shop or we can see a movie in a cinema hall. These are all business organisation that deal in purchasing and selling goods and services. Their aim is to earn profit. But we go to hospital for the treatment, and also a member of a sports club of our area. These are the organisation that are founded not to earn profit but to provide services to their members and to the community in general. Their objective is not to make profit but to serve. These are called Non- Profit Organization. Their main source of income is membership fees, subscription, donation, and etc. As the money is involved in the activities of these organisations, they also maintain accounts. These organizations prepare certain statement to ascertain the results in financial terms of their activities for a particular period of one year.In Malaysia, there is no specific accounting standard for the NPOs to prepare their especially related with the reporting and disclosure requirements. However, NPOs are encouraged to comply with the International Financial Reporting (IRFS) issued by International Accounting Standard Board and adopted by the Malaysian Accounting Standard Board (MASB) or reporting standards applicable for private entities (PERS) in the preparation and presentation of their financial statement. Besides that, a number of act and standard that bound the NPO but subject to several factors like type and nature of NPO and registration are the Societies Act 1996, the Company Act 1965, Trustees (Incorporation) Act 1952, Income Tax Act 1961 and Statement of Financial Account Standard 116. There are two method used in classifying the non- profit organization, the first is based on the ability of that organization to generate the fund which is self - sustained and non - sustained, while the second is based on the nature of their work. Under the first method, the NPO is classified as a self - sustained and non self sustained. The self- sustain organization is the non profit organization generate fund for their company with own fund. According to resource dependence theory, an organization operating in this environment will survive if they can manage the flow of resources and reduces the uncertainty in their environment .An important strategy in ensuring sustainability of the organization to communicate relevant information to the current and future resource providers.The primary purpose of balance sheet is to provide relevant information about an organisations assets, liabilities and net assets and about their relationships to each other at a moment in time. The information provided used with related disclosures and information in other financial statements will helps donor, members, creditors, and others to assets the followings:

a) The organizations ability to continue to provide servicesb) The organizations liquidity, financial flexibility, ability to meet obligations and needs foe external financing.According to our given project, we need to find one related industry based on this non- profit organisations. Therefore, we decided to choose WWF-Malaysia as our non profit organisation. This report only focused on the private NPOs, not the government agencies, since the government agencies in Malaysia are based on their specific requirement and guidelines. The discussion will emphasize on the requirement by the related laws and regulation and accounting treatment.1.2World Wide Fund (WWF) For Nature MalaysiaWWF stands for World Wide Fund for nature. It was formerly known as the World Wild Life Fund adopted its current name to show that is also works on other environmental issues and not just wild life. WWF is one of the worlds largest conservation organizations. WWF is an independent foundation registered under Swiss Law. WWF is also a non- profit organisation.WWF Malaysia has come a long way since its coming into being on the 13th January 1972. In the early days we had solely focused on wild life conservation such as saving endangered species like the tigers and the turtles, today their work has extended to encompass marine and forest conservation as well, from to protecting our highlands and forests and also our rivers and seas.WWF Malaysia began as a humble two person organisation. But, today they have close to 200 people working with them from Kedah to Sabah. Also known as Tabung Alam Malaysia, we are governed by a Board of Trusted. Their conservation work focuses on species, forests, and fresh water, marine and environmental education.From high up in the mountain tops to down low at the bottom of the sea, WWF Malaysia is working hard to help protect the countrys natural environment through our various conservation programmes. WWF Malaysia focuses its conservation work on large scale priority areas that encompass a broad range of wild life and ecological systems. The ultimate goal is to achieve long term and sustainable conservation impact in the country by conserving, restoring and protecting a diversity of species, forest, marine, coastal and fresh water environmental. For a living planet for us, for our children and the generation to come.

2.0NATURE AND FUTURE OF INDUSTRYNature of a non profit organization is to serve the public for a defined purpose, without being profit oriented. The establishment of such an organization is not for business or for individuals to shield their assets or avoid payments of income taxes. They are permitted to make profits, provided profits are channelled to the specific needs that are approved by the tax regulatory body of the country.For example, in WWF works to strengthen communities ability to conserve the natural resources they depend upon. We help them secure the rights; capacities and knowledge they need to strengthen their role as stewards of the environment, and improve their live hoods and health. We also promote innovation, learning and implementation of strategies to expand community conservation across longer landscapes. This include a) Facilitating links across communitiesb) Building capacity of support institutionsc) Promoting policy framework for community tenure decentralized governance and sustainable live hoods.Besides that, WWF also in social activities without expecting any revenue or gain from that. For example, empower women and improve health for girls and women. Girls and women often play a central role in nature resource management and use collecting forest products for food, medicine and firewood and water for their families. WWF help them gain better access to education and health services such as improving drinking water, vaccinations and family planning so they can improve their lives and helps lead environment change in their families and community.When we talk about WWF future, they work globally with every sector at every level. To accomplish our ambitious goals, WWF work to educate and influence people into making sustainable choices and decision around the use of natural resources and those who work in government and set policy that impacts nature. They work globally at every level in the field and in the local community, from the halls of government to the global market place. One of WWFs strength is our ability to engage stakeholders in business, civil society and academia. Working together with 1.1 million supporters, WWF partners, project and experts are making a difference in creating a healthy future for our plant.

3.0RELATED LAWS AND STANDARDIn Malaysia, there is no specific accounting standard for the NPOs to prepare their especially related with the reporting and disclosure requirements. However, NPOs are encouraged to comply with the International Financial Reporting (IRFS) issued by International Accounting Standard Board and adopted by the Malaysian Accounting Standard Board (MASB) or reporting standards applicable for private entities (PERS) in the preparation and presentation of their financial statement. Besides that, a number of act and standard that bound the NPO but subject to several factors like type and nature of NPO and registration are the Societies Act 1996, the Company Act 1965, Trustees (Incorporation) Act 1952, Income Tax Act 1961 and Statement of Financial Account Standard 116. Under Financial Accounting Standard Board (FASB) 117, financial statement of non profit organization, the establishment of standard for general purpose external financial statement provided by a non- profit organization. This statement requires that all non- profit organization provide a statement of financial position, a statement of activities, and a statement of cash flows. This statement also requires classification of an organizations net assets and its revenue, expenses, gains and losses based on the existence of absence of donor imposed restrictions. It requires that the amounts for each of three classes of net asset :- permanently restricted, temporarily restricted and unrestricted. This statement amends FASB statement No 95 statement of cash flows, to extend its position to non- profit organization and to expand its description of cash flow from financing activities to include certain donor restricted cash that must be used for long term purposes.Under Financial Accounting Standard Board (FASB) 116, standards for general-purpose external financial statementsprovided by a non profit organizations. It specifies that those statements include astatement of financial position, a statement of activities, and a statement of cash flows. ThisStatement also amends FASB Statement No. 95, Statement of Cash Flows, to extend itsprovisions to non profit organizations. It also specifies that voluntary health and welfare organizations continue to provide a statement of functional expenses, which is useful inassociating expenses with service efforts and accomplishments of non profit organizations.

4.0FINANCIAL STATEMENTS NEED TO BE PREPARED BY NON PROFIT ORGANISATIONIn World Wide Fund (WWF) for Nature Malaysia which is WWF is NPO, they should prepare generally all NPO need to prepare a complete set of annual account based on MASB standard, that consists of statement of financial, income and expenditure statement, cash flow statement, notes to account and trading account. Statement of Financial Position summarizes the assets, liabilities and net assets of the organization at a specified data. It is a snapshot of the organisation financial position on that date.Statement of activity (also called an income and expenses statement), this reports the organisations financial activity over a period of time. It shows income minus expenses, which results in either a profit or loss. Statement of cash flow summarizes the resources that become available to the organisation during the reporting period and the uses made of such resources. It is especially useful in real time because it reports income that has been received and expenses that have been paid.Statement of projected cash flow is helpful for the board and the organization to be able to anticipate any shortfalls for planning purposes. Statement of functional expenses reports all expenses as related either to program services or to supporting services. Expenses under program services are shown dividend among the various programs. Expenses under supporting services are generally divided between (1) management and general expenses and (2) fundraising expenses.According to the MASB standard, each component in the financial statement shall be identified clearly. In addition, the following shall be displayed prominently and repeated when it is necessary for a proper understanding of the information presented: a) The name of the reporting organization or other means of identification, and any change in that information from the proceeding balance sheets dateb) The balance sheet date or the period covered by the financial statements, whichever is appropriate to that component of the financial statementsc) The presentation currencyd) The level of rounding used in presenting amounts in the financial statements.

Financial accounting for NPO also requires a specific expertise and knowledge especially when deal with the income that received from various resources and come with the different way and nature. It also practiced fund accounting that requires accountant to manage efficiently to ensure the objectives and achieved. Similar to the other organization, they are requires by the law and regulation to prepare the financial statement that consists of several statement like balance sheet, income and expenditure statement, but the objective of preparation of income statement are mostly to fulfil the accountability instead of delivering the information.

5.0DISCLOSURE REQUIREMENT OF A SPECIFIC ITEM FOR THAT NON PROFIT ORGANISATIONAccording to Financial Accounting Standard Board (FASB), there are two Statement of Financial Accounting Standards need to be following by Non-Profit Organization (NPO) which is standards No. 116 and 117. It also known as FASB116 and FASB117. Under FASB 116, there are 8 paragraph explain about the requirement that need to be comply by every NPO which are paragraph 8 (Contributions Received), 14-16 (Reporting by Not-for-Profit Organizations), 17 (Expiration of Donor-imposed Restrictions), 20 (Measurement at Fair Value), 29 (Effective Date and Transition). FASB117 focus on the statement need to be prepared by NPO. There are 3 statements including Statement of Financial Position (paragraph 916), Statement of Activities (paragraph 1728) and Statement of Cash Flows (paragraph 2930).5.1Financial Accounting Standard Board (FASB) 1165.1.1Contributions ReceivedAccording to Paragraph 8 FASB 116, Contributions received shall be recognized as revenues or gains in the period received and as assets, decreases of liabilities, or expenses depending on the form of the benefits received. Contributions received shall be measured at their fair values. Contributions received by not-for-profit organizations shall be reported as restricted support or unrestricted support as provided in paragraphs 14-16. Paragraphs 14, FASB 116 discuss about Reporting by Not-for-Profit Organizations for contribution received. A not-for-profit organization shall distinguish between contributions received with permanent restrictions, those received with temporary restrictions, and those received without donor-imposed restrictions. A restriction on an organization's use of the assets contributed results either from a donor's explicit stipulation or from circumstances surrounding the receipt of the contribution that make clear the donor's implicit restriction on use. Contributions with donor-imposed restrictions shall be reported as restricted support; however, donor-restricted contributions whose restrictions are met in the same reporting period may be reported as unrestricted support provided that an organization reports consistently from period to period and discloses its accounting policy. Restricted support increases permanently restricted net assets or temporarily restricted net assets. Contributions without donor-imposed restrictions shall be reported as unrestricted support that increases unrestricted net assets.5.1.2Expiration of Donor-imposed RestrictionsAccording to paragraph 17 of FASB 116, a not-for-profit organization shall recognize the expiration of a donor-imposed restriction on a contribution in the period in which the restriction expires. A restriction expires when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both.If an expense is incurred for a purpose for which both unrestricted and temporarily restricted net assets are available, a donor-imposed restriction is fulfilled to the extent of the expense incurred unless the expense is for a purpose that is directly attributable to another specific external source of revenue.5.1.3Measurement at Fair ValueThe present value of estimated future cash flows using a discount rate commensurate with the risks involved is an appropriate measure of fair value of unconditional promises to give cash. Subsequent accruals of the interest element shall be accounted for as contribution income by donees and contribution expense by donors. Not-for-profit organizations shall report the contribution income as an increase in either temporarily or permanently restricted net assets if the underlying promise to give is donor restricted. Not-for-profit organizations shall report the contribution income as an increase in either temporarily or permanently restricted net assets if the underlying promise to give is donor restricted. It was stated under paragraph 20, FASB 116.5.1.4Effective Date and TransitionParagraph 29, FASB 116 disclose a not-for-profit organization shall report the cumulative effect of a change in accounting on each class of net assets in the statement of activities between the captions "extraordinary items," if any, and "change in unrestricted net assets," "change in temporarily restricted net assets," and "change in permanently restricted net assets."

5.2Financial Accounting Standard Board (FASB) 1175.2.1ScopeAccording to Financial Accounting Standard Board (FASB) 117,paragraph 7, this Statement specifies certain basic information to be reported in financial statements of not-for-profit organizations. Its requirements generally are no more stringent than requirements for business enterprises. A set of financial statements includes, either in the body of financial statements or in the accompanying notes, that information required by generally accepted accounting principles that do not specifically exempt not-for-profit organizations and required by applicable specialized accounting and reporting principles and practices. For example, Financial Accounting Standards Board Not for redistribution not-for-profit organizations should apply the disclosure and display provisions for financial instruments; loss contingencies; extraordinary, unusual, and infrequently occurring events; and accounting changes.5.2.2Statement of Financial PositionAccording to FASB 117, paragraph 9, the primary purpose of a statement of financial position is to provide relevant information about an organization's assets, liabilities, and net assets and about their relationships to each other at a moment in time. The information provided in a statement of financial position, used with related disclosures and information in other financial statements, helps donors, members, creditors, and others to assess:a) the organization's ability to continue to provide services andb) The organization's liquidity, financial flexibility,3 ability to meet obligations, and needs for external financing.

In paragraph 89 of FASB 117, classify assets and liabilities as current and noncurrent, although not required by generally accepted accounting principles, is a common reporting practice of both business enterprises and not-for-profit organizations. As others have noted, this classification alone generally does not provide users of financial statements with the liquidity information they need.

Thus, other disclosures must be added to the financial statement or notes to financial statements. More recently, financial reporting has emphasized information about changes in cash and cash equivalents, and that new emphasis obviates the need for a rigid requirement to classify and report amounts of current assets and current liabilities.Some relevant information about the liquidity or maturity of assets and liabilities cannot be adequately communicated solely by classification methods, such as current and noncurrent, or by sequencing information in financial statements. This Statement and generally accepted accounting principles provide latitude, in those circumstances, to disclose information in notes to financial statements. It was stated under paragraph 91, FASB 117.5.2.3Statement of ActivitiesAs stated in paragraph 17, the primary purpose of a statement of activities is to provide relevant information about:a) the effects of transactions and other events and circumstances that change the amount and nature of net assetsb) the relationships of those transactions and other events and circumstances to each other, andc) how the organization's resources are used in providing various programs or services. The information provided in a statement of activities, used with related disclosures and information in the other financial statements, helps donors, creditors, and others to:1) evaluate the organization's performance during a period2) assess an organization's service efforts and its ability to continue to provide services, and 3) assess how an organization's managers have discharged their stewardship responsibilities and other aspects of their performance.

To help explain the relationships of a not-for-profit organization's ongoing major or central operations and activities, under paragraph 24 of FASB 117, a statement of activities shall report the gross amounts of revenues and expenses. However, investment revenues may be reported net of related expenses, such as custodial fees and investment advisory fees, provided that the amount of the expenses is disclosed either on the face of the statement of activities or in notes to financial statements.To help donors, creditors, and others in assessing an organization's service efforts, including the costs of its services and how it uses resources, a statement of activities or notes to financial statements shall provide information about expenses reported by their functional classification such as major classes of program services and supporting activities. Voluntary health and welfare organizations shall report that information as well as information about expenses by their natural classification, such as salaries, rent, electricity, interest expense, depreciation, awards and grants to others, and professional fees, in a matrix format in a separate financial statement. Other not-for-profit organizations are encouraged, but not required, to provide information about expenses by their natural classification. It was stated under paragraph 26.In paragraph 121 of FASB 117, the AICPA task force recommended that "gains and losses on investments of permanently restricted net assets should be displayed initially as permanently restricted, and the amount of net gains available for use by the organization should be disclosed in the notes to the financial statements." It also said, "To the extent that accumulated net gains are appropriated for use by the organization in accordance with the law, such amounts should be displayed as capital reclassifications." Most respondents to the Invitation to Comment agreed with the recommendation for initial display and disclosure, but some of those respondents and others said certain amounts subsequently appropriated by the organization's governing board are "operating reclassifications" rather than "capital reclassifications.In paragraph 159 although the statements of activities report expenses by function, expenses may be reported by natural classification in the statements with functional classification disclosed in the notes.5.2.4Statement of Cash FlowIn paragraph 31, the financial statements shall disclose the nature of any restatements and their effect, if any, on the change in net assets for each year presented.

6.0PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTWorld Wide Fund (WWF) Malaysia is one of the non profit organisation (NPO) in Malaysia, so they needs to prepare their own financial statements as a company financial reporting. In Malaysia, Malaysia Accounting Standard Board (MASB) did not have a specific accounting standard for the NPO especially related to the requirement of presentation and disclosure. However, NPO are encourage to comply with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standard Board and adopted by the MASB or reporting standards applicable for private entities in the preparation and presentation of their financial statements. According to Statement of Financial Accounting Standards No.116,(June 1993) this Statement establishes standards of financial accounting and reporting for contributions received and contributions made. Accounting for contributions is an issueprimarily for non profit organizations because contributions are a significant source ofrevenues for many of those organizations. However, this Statement applies to all entities(non profit organizations and business enterprises) that receive or make contributions. ThisStatement also establishes standards for recognizing expirations of restrictions on contributionsreceived and for accounting for collections of works of art, historical treasures, and similarassets acquired by contribution or by other means.According to Statement of Financial Accounting Standards No.117,(June 1993) this Statement establishes standards for general-purpose external financial statementsprovided by a non profit organizations. It specifies that those statements include astatement of financial position, a statement of activities, and a statement of cash flows. ThisStatement also amends FASB Statement No. 95, Statement of Cash Flows, to extend itsprovisions to non profit organizations. It also specifies that voluntary health and welfare organizations continue to provide a statement of functional expenses, which is useful inassociating expenses with service efforts and accomplishments of non profit organizations.

6.1Statement of Financial Position

Source:Chairmans Statement, Statement by the Trustees and Audited Financial Statements WWF For Nature Malaysia 2013

In WWF Malaysia, this report is known as the balance sheet in the for profit universe and shows the assets, liabilities and net assets of the NPO. This statement shows the balance at a 30 June 2013 and essentially is a snapshot of the organisations financial health on that date. FASB 117 mandates that the statement of financial position be classified betweeen current and non current assets and liabilities. In WWF Malaysia, typically current assets include: cash and bank balance original maturities of less than one year, and sundry receivables that are expected to be collected within one year. Liabilities that are classified as current include sundry payables is to be earned within one year. In addition, FASB 117 requires that the statement of financial position report net assets based on existence of donor imposed restrictions. The total net assets are to be categorized as unrestricted, temporarily restricted and permanently restricted.

6.2Statement of Activities

Source:Chairmans Statement, Statement by the Trustees and Audited Financial Statements WWF For Nature Malaysia 2013

For the Statement of Activities, this report is also known as the income statement or the profit and loss statement. In WWF Malaysia this report known as Statement of Income and Expenditure for the year ended 30 June 2013. The statement reports the revenue, expenses, gian and loss of an NPO for a specified period, usually one year. Under FASB 117, all revenue or support received with donor imposed restricted is reported as temporarily and permanently restricted revenue. However, expenses incurred to satisfy the restriction are not reported as temporarily restricted. All expenses are reported as unrestricted and a separate line amounts released from restriction is included in the statementof activities.

Source:Annual Review Highlights WWF For Nature Malaysia 2013

The income of World Wide Fund (WWF) for Nature Malaysia as at 30 June 2013 are comes from donations from coperations and individuals, WWF network grants comes from two sources which are international grants and others, interest income and others compare with 30 June 2012 there are extra income from public sector funding. The income for 2013 is RM36,056,000. And all the expenditure for 30 June 2013 are conservation, fundraising and administration & finance expenditure. Its amounted to RM38,821,000. So, we can see that the expenditure as at 30 June 2013 is higher than the income. There are deficit amounted by RM2,765,000.

6.3Statement of Receipts and Payments

Source:Chairmans Statement, Statement by the Trustees and Audited Financial Statements WWF For Nature Malaysia 2013

Source:Chairmans Statement, Statement by the Trustees and Audited Financial Statements WWF For Nature Malaysia 2013For the Statement of Receipts and Payments for the year ended 30 June 2013, its show all the receipts and payments that has been used WWF Malaysia in 2013. It is summary of cash book. It also an elemantary form of account commanly adopted by non profit making concern. The main purpose is to provide information about the company gross receipts and gross payments. The Statement of Receipts and Payments show all the flow of cash and cash equivalents from the beginning financial year and end of financial year. 6.4Notes to the Financial StatementThe notes to the financial statements are an integral part of the statement of financial position, the statement of income and expenditure and statement of receipts and payments. The notes to the financial statements often provide several pages of information regarding the nature of the nonprofit's activities as well as a summary of its significant accounting policies.[footnoteRef:1] [1: Notes of Financial Statement for WWF for Nature Malaysia attach in appendices.]

7.0ANALYSIS OF DISCLOSURE COMPLIANCE7.1Introduction

Every not-for-profit organizations (NPO) are requires to comply all the requirement by FASB117 and FASB 116. These standards will have the most significant impact on nonprofits in more than 20 years. FASB116 are dealing with contributions made and received, and FASB 117 dealing with financial statement format. Compliance with both standards is required for years ending December 31, 1995 and beyond, with an optional one year delay for small organizations which are those with annual expenditures under $1,000,000 and total assets less than $5,000,000.FASB 117 requires that all not-for-profit organizations provide a statement of financial position, a statement of activities, and a statement of cash flows. It requires reporting amounts for the organization's total assets, liabilities, and net assets in a statement of financial position; reporting the change in an organization's net assets in a statement of activities; and reporting the change in its cash and cash equivalents in a statement of cash flows.FASB 116 requires not-for-profit organizations to distinguish between contributions received that increase permanently restricted net assets, temporarily restricted net assets, and unrestricted net assets. It also requires recognition of the expiration of donor-imposed restrictions in the period in which the restrictions expire.

7.2Purpose of Analysis

The purpose of the analysis is to determined the level of compliance for presentation and disclosure of financial statements by not-for-profit organizations (NPO) that required by FASB 117 and FASB 116. Whether the organisation presenting their financial statements by complying the requirements that have been stated in FASB 117 and FASB 116. It is determined whether that industry had been complied just for the certain items only or all of the requirements. The other purpose for this project is also to understand the special requirements or items of presenting and disclosure in financial statements for the NPO which is different from athe industry. It is also to analyze the presentation and disclosure practiced by the selected company which is World Wide Fund (WWF) Malaysia.7.3Index of Analysis7.3.1Financial Accounting Standard Board (FASB) 116

FASB 116ItemsRequirement(Disclosure)WWFComply

PARA8CONTRIBUTIONS RECEIVEDContributions received by not-for-profit organizations shall be reported as restricted support or unrestricted supportContributions were reported as unrestricted and restrictedWWF comply the requirement

PARA 14REPORTING BY NOT-FOR-PROFIT ORGANIZATIONSA not-for-profit organization shall distinguish between contributions received with permanent restrictions, those received with temporary restrictions, and those received without donor-imposed restrictions.Contributions were reported as unrestricted, temporarily restricted and permanently restricted.WWF comply the requirement

PARA 17EXPIRATION OF DONOR-IMPOSED RESTRICTIONSA not-for-profit organization shall recognize the expiration of a donor-imposed restriction on a contribution in the period in which the restriction expires. A restriction expires when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both.Donor-imposed restriction expired either with the passage of the time or fulfilment of a specific pragmatic purposeWWF comply the requirement

PARA 20MEASUREMENT AT FAIR VALUENot-for-profit organizations shall report the contribution income as an increase in either temporarily or permanently restricted net assets if the underlying promise to give is donor restricted.Donor restricted was increase WWF comply the requirement

PARA 29EFFECTIVE DATE AND TRANSITIONA not-for-profit organization shall report the cumulative effect of a change in accounting on each class of net assets in the statementof activities between the captions "extraordinary items," if any, and "change in unrestricted net assets," "change in temporarily restricted net assets," and "change in permanently restricted net assets."Company did not have any extraordinary items for the year end 2013. They just disclose for the change in unrestricted net assets," "change in temporarily restricted net assets," and "change in permanently restricted net assets.".

WWF comply the requirement

7.3.2Financial Accounting Standard Board (FASB) 117

FASB 117ItemsRequirement(Disclosure)WWFComply

PARA 9STATEMENT OF FINANCIAL POSITION

Statement of financial position is to provide relevant information about an organization's assets, liabilities, and net assets and about their relationships to each other at a moment in time.In WWF Malaysia, typically current assets include: cash and bank balance original maturities of less than one year, and sundry receivables that are expected to be collected within one year. WWF comply the requirement

PARA 89STATEMENT OF FINANCIAL POSITIONClassify assets and liabilities as current and noncurrent, although not required by generally accepted accounting principles, is a common reporting practice of both business enterprises and not-for-profit organizations.Liabilities that are classified as current include sundry payables is to be earned within one year.WWF comply the requirement

PARA 91STATEMENT OF FINANCIAL POSITIONRelevant information about the liquidity or maturity of assets and liabilities cannot be adequately communicated solely by classification methods, such as current and noncurrent, or by sequencing information in financial statements.WWF is subject to liquidity and debt services coverage ratio requirement and certain restrictions and limitations with respect to incurrences ofIndebtedness, consolidations and merge and transfer of assets.WWF comply the requirement

PARA17STATEMENT OF ACTIVITIES

The primary purpose of a statement of activities is to provide relevant information about:(a)the effects of transactions and other events and circumstances that change the amount and nature of net assets(b)the relationships of those transactions and other events and circumstances to each other, and(c) how the organization's resources are used in providing various programs or services.WWF Malaysia this report known as Statement of Income and Expenditure for the year ended 30 June 2013. The statement reports the revenue, expenses, gain and loss of an NPO for a specified period, usually one yearWWF comply the requirement

PARA 24STATEMENT OF ACTIVITIESStatement of activities shall report the gross amounts of revenues and expensesWWF did not comply the requirement

PARA 26STATEMENT OF ACTIVITIESVoluntary health and welfare organizations shall report that information as well as information about expenses by their natural classification,WWF did not comply the requirement

PARA 31STATEMENT OF CASH FLOWSThe financial statements shall disclose the nature of any restatements and their effect, if any, on the change in net assets for each year presentedThe Statement of Receipts and Payments show all the flow of cash and cash equivalents from the beginning financial year and end of financial year.WWF comply the requirement

7.4Summary and Level of Compliance7.4.1Summary of ComplianeFASB 116ItemsCompliance

Para 8Contribution Receive/

Para 14Reporting By Not-For-Profit Organizations/

Para 17Expiration Of Donor-Imposed Restrictions/

Para 20Measurement At Fair Value/

Para 29Effective Date And Transition/

FASB 117ItemsCompliance

Para 9Statement Of Financial Position/

Para 89Statement Of Financial Position/

Para 91Statement Of Financial Position/

Para 17Statement Of Activities/

Para 24Statement Of ActivitiesX

Para 26Statement Of ActivitiesX

Para 31Statement of Cash Flow/

7.4.2Level of Compliance

Figure 1: Level of Compliance for FASB116

Figure 1: Level of Compliance for FASB117

7.5ConclusionFrom the analysis that had been made, we can conclude that, WWF comply majority of reiurement made by FASB 117 (71.43%), and fully comply with FASB 116. It made the users of the financial statement get enough information and easy for them to made decision especially to increase the fund to the organisation. Besides that, the impact of FAS 116 and 117 is so extensive that all levels of operations at a nonprofit will be affected. It not just the accounting office but all the related parties. For example, development officers will need to know the exact terms of contributions in order to correctly record them under the new standards, legal assistance may be needed to determine the proper treatment for endowment fund gains and losses, and computer assistance may be required to accommodate the new reporting requirements.

8.0CONCLUSIONWe can conclude that World Wide Fund (WWF) For Nature Malaysia the financial statements company are mostly complied with the disclosure requirements as stated in the specific Financial Accounting Standard Board (FASB) 116 and 117 discussed earlier except for certain disclosure. To the extent practicable and applicable, the information in the financial statements are presented and disclosed in accordance to the FASB 116 and 117. The required information is either being disclosed in the financial statements or in the notes to the financial statements or both. The disclosures enable us to identify the changes, material matters or events and the significant risk faced the companies. But still, some of the disclosure requirements in the specific FASB 116 and 117 are not applicable in the financial statements of WWF. There are some circumstances that WWF not fully follow the requirement but still comply most as stated by FASB 116 and 117.As a conclusion, financial statements should be prepared in accordance to the standards. Otherwise, the Non Profit Organisation (NPO) did not have a specific standard provide by Malaysian Financial Reporting Standard (MFRS) so NPO needs to follows the standard provide by FASB. The information provided will tend to mislead the users to make wrong decisions and take inappropriate actions. FASB set out the disclosure requirements with the objective to enhance the understandability, reliability, comparability and relevance of the financial statements. The financial report which complies with the disclosure requirements will provide a true and fair view and it is useful in assisting the users to make decisions.

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