Governance and Financial Reporting Practices: Assessment of FATF and APG Guidelines on Malaysian Companies Limited by Guarantee

AbstractThis study examines the disclosure level of governance and financial reporting practices of NPOs in Malaysia. The data was extracted from annual reports of NPOs registered as companies limited by guarantee (CLBG) with the Companies Commission of Malaysia (CCM) for the year 2009-2011. The result of this study provides evidence that the level of disclosure in NPOs is low. It is possible that the application of reporting framework for-profit organizations used by the CLBGs limits the disclosure of more comprehensive information. The study demonstrates that there is a need of a reporting framework which can facilitate the CLBGs in reporting useful information to their relevant stakeholders