Quality of Annual Financial Reporting: A Study of Cooperatives in Malaysia

The main vision of the Malaysian Cooperative Policy 2030 is to ensure cooperatives become the main catalyst for Malaysia's socio-economic growth. This study aims to determine the quality of annual financial reporting by the cooperative sector in Malaysia. The level of financial reporting quality is measured using an unweighted index of mandatory and voluntary information disclosure. The data of the study were collected through cooperative annual reports and questionnaires. A total of one hundred twenty annual reports for the years 2010 and 2014 were observed. The results show that the average financial reporting quality achieved is satisfactory. One of the significant contributions of this study is that it develops a mandatory and voluntary information disclosure level index for cooperatives in Malaysia.