Question

You are a manager who works in the finance department of ANZ Corporation in Malaysia. You are interested to analyse the core principles of finance that influence your company’s financial figures. Explain any FIVE (5) principles of finance that give significant impacts to your decision making process in order to achieve the desired financial performance for the year 2020 (25 marks for this question).

Answer 1

1. CONSISTENCY : The handling of transactions should be done in a consistent manner. That is, policies and procedures should be stablished to address similar types of transactions in a routine manner.

2. TIMELINESS: The handling of transactions should be done within a reasonable period of time consistent with time frames outlined.

3. JUSTIFICATION: Transaction should have the reason that supports the project's goals, and adheres to guidelines outlined by the company.

4. DOCUMENTATION: There should be sufficient documentation to support the transaction which must be retained, organized, and complete.

5. CERTIFICATION: The approval of transactions must be done and should carry all the correct authorizing signatures.