Accounting

Accounting in Associates

Accounting in Associates
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MPERS vs MFRS : Associates

In this article, we share the main differences in the accounting requirements for associates under MFRS 128 and Section 14 of MPERS.

Associates

Investment in associate refers to the investment in an entity in which the investor has significant influence but does not have full control like a parent and a subsidiary relationship. Usually, the investor has a significant impact when it has 20% to 50% of shares of another entity.

Section 14 of MPERS - Associates

Measure investment in associates

  • The cost model

    Investment is measured at cost less impairment. The quoted associate must be measured at fair value.

  • The equity method

    No exception for temporary investment and for conditions of severe restriction.

  • The fair value model

    Investment is measured at fair value through profit and loss. Any investment which is impracticable to measure fair value must be measured using the cost model.

When an associate becomes a subsidiary or joint venture, a remeasurement is required with gain or loss recognized in P/L account

MFRS 128 - Associates

Measure investment in associates under the equity method in the consolidated financial statements.

No exception for temporary investment and for conditions of severe restriction.

When an associate becomes a subsidiary (not joint venture), a remeasurement is required.

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Accounting for Investment Properties in Malaysia

Accounting for Investment Properties in Malaysia
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MPERS vs MFRS : Investment Properties

In this article, we share the main differences in the accounting requirements for investment properties under MFRS 140 and Section 16 of MPERS.

Investment Properties

Investment property is property (land or a building – or part of a building – or both) held by the owner or by the lessee under a finance lease to earn rentals or for capital appreciation, or both, rather than for:

  • Use in the production or supply of goods or services, or for administrative purposes; or

  • Sale in the ordinary course of operations.

What is the accounting treatment for investment properties?

Section 16 of MPERS - Investment Properties

If the fair value can be measured reliably without undue cost or effort on an ongoing basis, the IP must be measured at the fair value model.

All other IP must be accounted for as property, plant and equipment using the depreciated cost model in Section 17 Property, Plant and Equipment.

MFRS 140 - Investment Properties

Measured at fair value or depreciated cost model

 

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Accounting for borrowing cost Malaysia

Accounting for borrowing cost Malaysia
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MPERS vs MFRS : Borrowing Cost

In this article, we share the main differences in the accounting requirements for borrowing costs under MFRS 123 and Section 25 of MPERS.

Borrowing Cost :

Borrowing costs are interest and other expenses incurred by an entity concerning the funds borrowed. Borrowing cost includes the following type of costs:

  • Interest on bank borrowings (both short-term and long-term) as well as bank overdrafts.

  • Amortisation of discounts or premiums relating to borrowings.

  • Amortisation of ancillary costs incurred in connection with the arrangement of borrowings.

  • Finance charges in relation to finance leases and service concession arrangements.

  • Exchange differences from foreign currency borrowings, to the extent that they are regarded as an adjustment to interest costs.

  •  

What is the accounting treatment for borrowing costs?

Section 25 of MPERS - Borrowing Cost

Recognise all borrowing costs as an expense in profit or loss in the period they are incurred. The option of capitalising borrowing costs on qualifying

assets are not allowed.

MFRS 123 - Borrowing cost

Borrowing costs that are directly related to a qualifying asset shall be capitalised as part of the cost of that asset.

Borrowing costs directly attributable to the acquisition, construction or production of a 'qualifying asset' (one that necessarily takes a substantial period of time to get ready for its intended use or sale) are included in the cost of the asset.

An entity shall cease capitalising borrowing costs when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete

 

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MPERS vs MFRS Malaysia

MPERS vs MFRS Malaysia
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MPERS vs MFRS : An overview of Accounting Standards in Malaysia

There are 2 types of accounting standards in Malaysia

  1. MPERS : Malaysian Private Entities Reporting Standard

  2. MFRS : Malaysian Financial Reporting Standards

Private Entities

Private entities shall comply with either:

1. Malaysian Private Entities Reporting Standard (MPERS) in their entirety for financial statements. or

2. Malaysian Financial Reporting Standards (MFRS) in their entirety.

A private entity is a private company as defined in section 2 of the Companies Act 2016 that –

  1. is not itself required to prepare or lodge any financial statements under any law administered by the Securities Commission Malaysia or Bank Negara Malaysia; and

  2. is not a subsidiary or associate of, or jointly controlled by, an entity which is required to prepare or lodge any financial statements under any law administered by the Securities Commission Malaysia or Bank Negara Malaysia.

Notwithstanding the above, a private company that is itself, or is a subsidiary or associate of, or jointly controlled by, an entity that is a management company as defined in section 2 of the Interest Schemes Act 2016 is not a private entity.

MPERS vs MFRS

More to come in coming days the comparison MPERS and MFRS

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Overview of The Malaysian Financial Reporting Standards (MFRS)

Overview of The Malaysian Financial Reporting Standards (MFRS)
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The Malaysian Financial Reporting Standards (MFRS)

Accounting Standards Malaysia

There are three types of approved accounting standards here in Malaysia:

  • The Malaysian Financial Reporting Standards (MFRS) – This is the MASB approved accounting standards for entities, but this does not include private entities

  • Private Entity Reporting Standards (PERS) – This is the MASB approved accounting standards for all private entities. However, this has been withdrawn effective 1 January 2016.

  • Malaysian Private Entities Reporting Standards (MPERS) – This replaces the previous PERS and is in effect from 1 January 2016.

MFRS

Entities Other Than Private Entities shall apply the MFRS framework for annual periods beginning on or after 1 January 2012, with the exception of entities that are permitted in the alternative to apply the Financial Reporting Standards (FRS) framework.

The Malaysian Financial Reporting Standards (MFRS) framework was introduced by the Malaysian Accounting Standards Board (MASB) and came into effect on 1 January 2012.

It is fully compliant with the International Financial Reporting Standards (IFRS) framework, which enhances the credibility and transparency of financial reporting in Malaysia.

The numbering of the MFRS corresponds with the equivalent IFRS Standard issued by the IASB. MFRS prefix with “1xx” corresponds with the equivalent IAS.

 

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Accounting for lease under MPERS Section 20

Accounting for lease under MPERS Section 20
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Finance lease vs Operating lease under MPERS Section 20

What is Lease?

An agreement stated the transfer of an asset with the right of use by a lessor to a lessee.

There are two types of leases which are

- Finance lease

- Operating lease

Differences between a finance lease and an operating lease?

Classification of Finance lease:

- Ownership of the asset will be transferred to the lessee by the end of the lease term.

- Lease term is for the major part of the useful life of the asset even if the title is not transferred.

- Lessee has the option to purchase the asset at a lower price compared to the fair value.

- Present value of the minimum lease payments amounts to at least substantially all of the fair value of the leased asset.

- Leased assets have specialised nature that only the lessee can use without major modifications.

Classification of Operating lease:

- Lease does not transfer substantially all risks and rewards incidental to ownership.

Recognition and measurement for a lessee - Finance lease

Statement of Financial Position – Assets and Liabilities

- Recognise as assets and liabilities at amounts equal to:-

o the fair value of the assets; or

o if lower, the present value of the minimum lease payments

- Initial direct costs of the lessee are added to the amount recognised as an asset

- Using the effective interest method to reduce the outstanding liability

Statement of Comprehensive Income - Expenses

- Depreciate the asset according to lease term or useful life

- Finance charges of each period during the lease term

Operating lease

- Recognise lease payments as an expense over the lease term on a straight-line basis

Disclosure for lessee

Finance lease

- Carrying amount of the asset

- Amount of future minimum lease payment.

i) Not later than one year

ii) Later than one year and not later than five years

iii) Later than five years

Operating lease

- Amount of future minimum lease payment under non-cancellable operating leases ：

i) Not later than one year

ii) Later than one year and not later than five years

iii) Later than five years

- Lease payment is recognised as an expense.

Source:

MPERS 20 Leases

https://bit.ly/3wEJJXO

 

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How are joint ventures accounted for?

How are joint ventures accounted for?
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How are joint ventures accounted for?

i. What is an investment in a joint venture?

- A contractual agreement involved two or more parties.

- The parties involved have joint control over the business activity.

ii. Types of Joint venture

- Jointly controlled operations

- Jointly controlled assets

- Jointly controlled entities

iii. Recognition and measurement

1. Jointly controlled operations

Definition:

- Two or more venturers use their resources or expertise to produce a product.

- Each venture bears its expenses and liabilities and raises its finance.

- The revenue from the sale of the joint product and any expenses incurred in common are shared among the venturers.

Recognition in venturer's financial statements:

- Assets and liabilities incurred

- Expenses incurred and share of income

2. Jointly controlled assets

Definition:

- The joint control, and often the joint ownership, of assets dedicated to the joint venture.

Recognition in venturer's financial statements:

- share of the jointly controlled assets

- share of any liabilities incurred jointly or incurred by the venturer

- share of income

- share of expenses incurred.

3. Jointly controlled entities

Definition:

- A corporation, partnership, or other entity in which each venturer has an interest.

Recognition in venture’s financial statements:

(i) Cost model

- Cost less accumulated impairment losses

- Recognise distributions received from the investment as income

(ii) Equity model

- Recognise at the transaction price (including transactions costs)

- Subsequently adjusted to reflect the investor’s share of the profit or loss

(iii) Fair value model

- Initially, measured at transaction price (exclude transaction cost).

- Subsequently, measured at fair value, any changes recognized in profit or loss

4. What differentiates an interest in the joint venture from an investment in an associate?

Investment in associate = The investor has significant influence over the investee, by possessing the power to participate in their financial and operating decisions.

Joint venture = The parties involved have the power to joint control over the arrangement.

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Difference Between GAAP vs IFRS

Difference Between GAAP vs IFRS
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Difference Between US GAAP vs IFRS

US GAAP vs IFRS are the two most dominant systems of accounting. The International Financial Reporting Standards (IFRS) are used by international companies while companies use GAAP in the U.S.

Summarised are the key difference on these US GAAP vs IFRS

  1. International Accounting Standard Board vs Financial Accounting Standard Board

  2. USA vs The rest of world

  3. Rule based vs Principal based with flexibility

  4. General interpretation for the entity vs Specific procedure for the entity

  5. LIFO as preferred method for inventory valuation vs LIFO is not preferred for inventory valuation

  6. Cost model on PPE vs Cost & Revaluation model can be used on PPE

  7. Fair value on intangible assets vs Future economic benefits on the intangible assets

  8. R&D is expensed off vs Some development cost can be capitalized and amortised

  9. Extraordinary & unusual items are show below net profit vs Not allowed

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Investment in Associates MPERS

Investment in Associates MPERS
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Investment in Associates MPERS

Commonly asked question on investment in associates :

* How do you account for investment in associates?

* Is investment in associates a current asset?

* How do you record investment in accounting?

What is an investment in associates?

An investor has a significant influence on the investee’s decision of its

- Financial policy; and

- Operating policy

What is a significant influence?

- Power to participate in the financial and operating decisions of the investee

- Investor holds directly or indirectly ≥ 20% voting power of the investee

- For shareholdings < 20%, the significant influence must be clearly demonstrated to classify the investment as associate

What is the document showing the significant influence of an investor?

- Representation on the board of directors

- Participation in the investee’s policy-making processes, including participation in decisions about dividends or other distributions

- Material transactions between the investor and the investee

- Interchange of managerial personnel

- Provision of essential technical information

Recognition and measurement of investment of associates

(i) Cost model

- Cost less accumulated impairment losses.

- Recognise dividends and other distributions received from the investment as income.

(ii) Equity method

- Recognised at the transaction price (include transaction costs)

- Share of post-acquisition profits or losses

- Dividends received from an associate merely reduce the carrying amount of the investment.

(iii) Fair Value model

- Measured at the transaction price (exclude transaction cost)

How to Present

- classify investments in associates as non-current assets

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What costs are included in fixed assets?

What costs are included in fixed assets?
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What costs are included in fixed assets?

When acquiring a factory, except for the cost of land and building, we have to incur many other costs, such as:-

i)                 dismantling the items left by the previous owner,

ii)                renovation cost,

iii)               legal fees for the loan agreement, and

iv) Other administration costs.

Can we capitalize all of the cost as “assets”?

Dismantling and renovation costs as i & ii above, can be capitalised,

Legal fees and other administrative costs as iii & iv above need to be expense off.

Generally, we should capitalize all of the costs as long as there are incurred directly attributable to bringing the asset to the condition necessary for it to be capable of operating in the manner intended by management.

Expensed off cost

However, there are some costs specifically mentioned in the standards which we should NOT capitalized:

-        Cost of opening a new facility

-        Cost of advertising and promotional activities

-        Cost of staff training

-        Administration and other general overhead costs

-        Borrowing costs

Source

Section 17 Property, plant and equipment -

https://www.cas.net.my/wp-content/uploads/2013/02/MPERS-Framework.pdf

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How is an intangible asset accounted for?

How is an intangible asset accounted for?
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How is an intangible asset accounted for?


The accounting for an intangible asset is to record the asset as a long-term asset and amortize the asset over its useful life, along with regular impairment reviews. The accounting is essentially the same as for other types of fixed assets.

What is Intangible assets?

It is an asset which is identifiable, non-monetary without physical substance.

  •  Identifiable - can be separated when acquired

  •  Non-monetary - cannot convertible to cash easily

  •  Without physical substance - unable to touch

Example of intangible assets

  •  Patent

  •  Copyright

  •  Trademark

  •  Brand

  •  Software

  •  Franchise agreements

Recognition and measurement of Intangible Assets

1. Separate acquisition

Measured at cost at the acquisition date

Costs included:-

  •  Purchase price

  •  Import duties, non-refundable taxes, discount or rebate

  •  Any directly attributable cost of preparing the asset for its intended use

2. Acquired as part of a business combination

 Measured at fair value at the acquisition date

Measurement after Recognition

Cost model

Cost

Less: accumulated amortisation

Less: accumulated impairment losses

Amortisation Period

  •  Systematic basis over its useful life

  •  Amortisation begins when the intangible asset is available for use

  •  The amortisation charge shall be recognised as an expense

Amortisation Method

  • Straight-line method or

  • Amortisation method that reflects the pattern in which it expects to consume the asset’s future economic benefits

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What is the difference between Investment property & PPE?

What is the difference between Investment property & PPE?
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What is the difference between Investment property & PPE?

Investment Property (IP)

Land or building (or a part of it), or both, held for the following specific purposes:

  • To earn rentals;

  • For capital appreciation; or

  • Both

Accounting for IP

IP shall be measured at fair value at each reporting date.

The IP shall use the cost model if the fair value cannot be measured reliably without undue cost or effort

Undue costs or effort means the costs and benefits from obtaining or determining the information necessary to comply with a requirement

Property, plant and equipment (PPE)

  • For use in production or supply of goods or services

  • For administrative purposes

  • It is expected to be used during more than one period.

Accounting for PPE

1.Cost model

Cost less depreciation less accumulated & impairment losses

2.Revaluation model

Revalued amount less accumulated depreciation & accumulated impairment losses.

Complication

What is the treatment of property that is partly investment and partly owner occupied?

Mixed use property shall be separated between IP and PPE.

However, the entire property shall be accounted for as PPE if the fair value of the IP component cannot be measured reliably without undue costs or effort.

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Impairment of assets due to floodings

Impairment of assets due to floodings
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Impairment of assets due to floodings

Overview of Impairment-Assets Accounting

An asset impairment arises when there is a sudden drop in the fair value of an asset below its recorded cost. The accounting for asset impairment is to write off the difference between the fair value and the recorded cost.

Flooding continues across Malaysia! Do you know how to account for impairment of assets due to flood?

Here are some tips for you.

Key takeaways:

I. What is an impairment loss

II. What is an impairment test in accounting?

III. How do you treat the impairment of assets in accounting?

IV. How do you record an impairment of an asset?

V. Is an impairment an expense?

VI. Which accounting standard is applicable for impairment of assets?

VII. Indicators of impairment

Summary of learnings:

I. What is impairment loss?

An impaired asset is an asset valued at less than book value or net carrying value. In other words, an impaired asset has a current market value that is less than the value listed on the balance sheet. To account for the loss, the company's balance sheet must be updated to reflect the asset's new diminished value.

Floods can cause damage to the appliances on your premises. including the heating, ventilation and air conditioning system, water heaters or refrigerators. As a result, we can no longer recover any value through the use or sale of damaged assets.

We will need to provide impairment when the recoverable amount of an asset is less than the book value of an asset.

II. What is an impairment test in accounting?

An impairment test is an accounting procedure carried out to find out if an asset is impaired, i.e. whether the economic benefits that the asset embodies have dropped drastically. In general, if the carrying value of an asset exceeds the sum of undiscounted expected cash flows of an asset, the asset is impaired.

III. How do you treat the impairment of assets in accounting?

If the recoverable amount of the asset is more than the carrying amount, then the impairment loss has to be reversed and it has to be treated as income in the books of accounts. The reversal of impairment loss previously recognized for a cash-generating unit has to be allocated first to the assets, then goodwill.

IV. How do you record an impairment of an asset?

The total dollar value of impairment is the difference between the asset's carrying cost and the lower market value of the item. The journal entry to record an impairment is a debit to a loss, or expense, account and a credit to the related asset.

V. Is an impairment an expense?

Impairment is a non-cash expense that is reported under the operating expenses section of the income statement.

VI. Which accounting standard is applicable for impairment of assets?

The core principle in Malaysian Private Entities Reporting Standard (MPERS) – Section 27.5 to 27.9is that an asset must not be carried in the financial statements at more than the highest amount to be recovered through its use or sale. If the carrying amount exceeds the recoverable amount, the asset is described as impaired.

VII. Indicators of impairment

What are the other indicators except for flooding? Such as:-

External factors:

- Market value declines

- Negative changes in technology, markets, economy, or laws

- Increases in market interest rates

- Carrying amounts of assets higher than market value

Internal factors:

- obsolescence or physical damage

- asset is idle, part of a restructuring or held for disposal

- economic performance if an assets worse than expected

Source:

Malaysian Private Entities Reporting Standard (MPERS) – Section 27.5 to 27.9

https://www.cas.net.my/wp-content/uploads/2013/02/MPERS-Framework.pdf

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Why auditor ask any impairment on inventory

Why auditor ask any impairment on inventory
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Why auditor ask any impairment on inventory

MPERS section 13 Inventories

When performing an inventory audit, some of the most common challenges faced by the auditor include: Damaged inventory whose value must be adjusted to reflect its actual value to the company. ... Errors in shipping and receiving of goods can lead to an incorrect end-of-year cutoff total in inventory records

How should we value inventories?

Generally, inventories are valued at cost!

However, if the net realizable value (NRV) of the inventory is less than the cost, the NRV will usually need to be reported on the balance sheet instead of the cost.

What is the cost?

Cost consists of the cost of purchase, conversion, production overheads, joint products and by-products, and other relevant cost.

What is the net realizable value (NRV)?

Net realizable value (NRV) is defined as the expected selling price minus cost of completion.

In what situation we use NRV?

It requires the valuation of inventories at the lower of its historical cost or market value, but if market value cannot be calculated, then the net realizable value of the inventory should be used.

In practice, these are the scenarios where NRV come to the picture: -

1) Oversupply

2) Obsolescence

3) Price decline

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  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 

 

Is expenses capital or revenue?

Is expenses capital or revenue?
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Is expenses capital or revenue?

Capital expenditures are for fixed assets, which are expected to be productive assets for a long period of time.

Revenue expenditures are for costs that are related to specific revenue transactions or operating periods, such as the cost of goods sold or repairs and maintenance expense

What is Capitalized?

A capitalized item is recognized as an asset on the Balance Sheet.

Normally It has the economic future benefit, able to generate revenues and the useful life is at least one year.

What is Expensed?

The expensed item is recognized as an expense/cost of goods sold on the Income Statement.

It is the money spent and the cost incurred by a company in running a business and generating profit.

Example of Capitalized Expenses

ABC Sdn Bhd is required to construct a new building as an office. For the construction, the company pays the cost of labour at RM15,000.00 and the cost of construction material at RM 50,000.00.

The total cost of RM 65,000.00 will be capitalized because the useful life of the building is more than one year, and it has the economic future benefit and the ability to generate revenues for the company.

Example of Expense-Off Expense

ABC Sdn Bhd has constructed a new building as an office on 2 years ago. During the year, the company pays RM 10,000.00 to repair the roof of the building.

In this case, the cost of repairs being expensed. This is because the cost occurs once, and it is to fix the damage part in order the company able to use the building to run the business.

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

 

 

 

 

Xero Bronze Partner

Xero Bronze Partner
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THK Management Advisory Sdn Bhd (Partner account) is now a Xero, an online accounting software, bronze partner.
𝐕𝐢𝐬𝐢𝐭 𝐮𝐬
Wisma 𝐊𝐓𝐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
Wisma 𝐓𝐇𝐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
𝐊𝐓𝐏 (𝐀𝐮𝐝𝐢𝐭,𝐓𝐚𝐱, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)
An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients
𝐓𝐇𝐊 (𝐒𝐞𝐜𝐫𝐞𝐭𝐚𝐫𝐢𝐚𝐥, 𝐀𝐜𝐜𝐨𝐮𝐧𝐭/𝐏𝐚𝐲𝐫𝐨𝐥𝐥, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)
A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients
𝐊𝐓𝐏 𝐋𝐢𝐟𝐞𝐬𝐭𝐲𝐥𝐞
An internal community for our colleagues on work and leisure.
𝐊𝐓𝐏 𝐂𝐚𝐫𝐞𝐞𝐫
An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

Accounting for bitcoin (cryptocurrency)

Accounting for bitcoin (cryptocurrency)
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Accounting for bitcoin (cryptocurrency)

No accounting standard currently exists to explain how cryptocurrency should be accounted for, accountants have no alternative but to refer to existing accounting standards.

What is cryptocurrency?

Cryptocurrency is an intangible digital token that is recorded using a distributed ledger infrastructure, often referred to as a blockchain.

These tokens provide various rights of use. For example, cryptocurrency is designed as a medium of exchange. Other digital tokens provide rights to the use other assets or services, or can represent ownership interests.

These tokens are owned by an entity that owns the key that lets it create a new entry in the ledger. Access to the ledger allows the re-assignment of the ownership of the token. These tokens are not stored on an entity’s IT system as the entity only stores the keys to the Blockchain (as opposed to the token itself).

They represent specific amounts of digital resources which the entity has the right to control, and whose control can be reassigned to third parties

What accounting standards

Cash & cash equivalents

Bitcoin is too volatile! Cash is readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Financial assets

It does not represent cash, an equity interest in an entity, or a contract establishing a right or obligation to deliver or receive cash or another financial instrument.

Moreover, bitcoins do not provide the holders with a residual interest in the assets of an entity after deducting all its liabilities.

Property, Plant & Equipment

Bitcoin is not a tangible asset so it does not fall into the scope of PPE.

Inventory

Inventory accounting may be appropriate if an entity holds bitcoins for sale in the ordinary course of business.

However if an entity holds bitcoins for investment purposes over a period of time, inventory accounting is not appropriate.

Intangible assets

It appears to meet the definition of an intangible asset which define as an identifiable non-monetary asset without physical substance.

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 

 

做 Account 最奇葩的问题

做 Account 最奇葩的问题
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我们在列出2021 年最愚蠢的问题给我们的客户 :

  • 为什么4月份没有销售？

  • 为什么这几个月 sales 这么低?

  • 为什么收入下降这么多？

  • 为什么不可以跟银行借钱吗?

  • 你明年的计划是什么 ？

  • 为什么今年没有盈利？

  • 为什么今年有这么多资产变卖?

  • 为什么工资减少？

  • 销售额下降4%毛利下10%?

  • 为什么董事向公司注入资金?

  • 欠供应商时间更长 为什么?

  • 今年电费很低 发生什么事?

  • 为什么一年旅行费非常低?

  • 今年有分红吗？

  • 当 50% 的员工被解雇时, 内部控制有任何变化?

  • 为什么你可以开店但不开店?

  • 3%利息贷款这么难借 ？

  • 你有 going concern 的问题吗?

  • 可以为我做明年的现金流量预测?

如何搞懂外汇兑现 在帐目上呈现

如何搞懂外汇兑现 在帐目上呈现
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您是不是经常搞不懂外汇兑现在帐目上如何呈现? 

 

相信每个会计员都会对外汇的账目充满疑问。究竟为什么以会计的角度我们还是必须调整外汇兑现呢？原因就是为了呈现最完整与准确的会计报表，让公司可以更好的去规划与做财务方面的决定。可别小看这区区的外汇之差，外汇的数额越高越是会影响整个报表的利润哦!  

 
今天我们就以会计的角度带大家来了解这个课题： 

 

1）什么是已实现 （Realised）与未实现（Unrealised）的外汇损益？ 

  • 外汇损益 

是指本地公司与外国公司之间通过外币进行交易时，因货币汇率的差异而产生的损益。 

 
 

  • 已实现的外汇损益 

当以外币进行的交易完成付款时，就会产生已实现的外汇损益。 

 
 

  • 未实现的外汇损益 

当遇到公司的财政年度结束时，所有与外汇相关的账目都会产生未实现的外汇损益。 

 

2）用什么外汇率来做标准？ 

i）国家银行发布的汇率  

Bank Negara - Exchange Rate 

 

ii）马来西亚内陆税收局发布的汇率  

Inland Revenue Board of Malaysia - Exchange Rate  

 

iii） 付款时银行显示的汇率 

当我们在透过银行进行收款或付款时，外币转进马币的银行将自动出现汇率，这时的汇率就是标准，也是账目上的已实现（realised）汇率。 

 

3）什么时候产生已实现（realised）与未实现（unrealised）外汇损益？ 

i）已实现的外汇损益： 

是在当整个外汇交易从买卖到付款结束时所出现的汇率，这之间的差别就是发票日期与付款日不在同一天发生所导致的。 

 

当以外币完成销售订单时： 

 

Debit 顾客 

Credit 销售 

 

当以外币完成付款出现收益时： 

 

Debit 现金 

Credit 已实现的外汇收益 

Credit 顾客 

 

ii) 未实现的外汇损益： 

是每个月/每年在该外币买卖未进行付款时而发生的。我们必须依据政府所提供的汇率来做未付款交易的标准，原因是外汇率有起伏，当初交易的汇率如果拖了几个月后才付款，当中的汇率差额自然就有所更动了。 

 

当以外币完成销售订单时： 

 

Debit 顾客 

Credit 销售 

 

当外币销售未付款以及到了财政年度结束，但出现外汇亏损时： 

 

Debit 未实现的外汇损益 

Credit 顾客 

 

备注：除了以外币买卖的交易需要调整外汇率，其实所有有关外汇的一切账目都需要做出调整，比如外币银行。该外币银行并非实际亏损，而是兑换率出现了马币的差额所产生。 

 
 

4）列子 

i) 在01/06/2021,甲公司向外国公司采购了一批一千美金的货物。如果甲公司根据国家银行的汇率来做标准，那汇率将会是4.131。此外，供应商也要求甲公司在发票日期的一星期内支付款项。 

 

于是甲公司在04/06/2021以马币银行支付，该汇率是根据银行所转换的汇率为标准，汇率为4.121。由于购买与付款日期不同，因此账目上有了汇率差额  (4.131 - 4.121 = 0.010)，该差额将转实现外汇收益 (Gain on Realised Foreign Exchange Account)的账目。 

 

01/06/2021 Debit 购买 - RM 4,131.00 （USD 1,000.00 X 4.131） 

Credit 外国供应商 - RM 4,131.00 （USD 1,000.00 X 4.131） 

 

04/06/2021 Debit 外国供应商 - RM 4,131.00 （USD 1,000.00 X 4.131） 

Credit 银行 - RM 4,121.00 （USD 1,000.00 X 4.121） 

Credit 已实现外汇收益 - RM 10.00 （USD 1,000 X 0.010） 

 

ii）乙公司拥有一个新币的银行户口并于每年的12月为财政年度结束日期。该户口在31/12/2020还剩下一千新币的余额。在关账时，我们需以马币为基准将此户口里的一千新币呈现在年度报表里。此时账目里的新币汇率为3.2，如果乙公司根据31/12/2020国家银行的新币汇率做为财政年度结束的汇率基准，其汇率为3.0396。 

 

由于账目上的汇率与国家银行的汇率之间有了差异 (3.2 - 3.0396 = 0.1604)，因此该差额将调整为未实现的外汇亏损（Loss on Unrealised Foreign Exchange Account）。 

 

31/12/2020 Debit 未实现的外汇亏损 - RM 160.40 （SGD 1,000.00 X 0.1604） 

Credit 银行 - RM 160.40 （SGD 1,000.00 X 0.1604） 

 

欲知更多详情可以参考由马来西亚会计标准理事会发布的MASB 6。 

 

想了解外汇在税务上的资讯也可以参考 IRB official tax guideline on foreign exchange gain and loss 

 

𝐕𝐢𝐬𝐢𝐭 𝐮𝐬 :
Wisma 𝐊𝐓𝐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
Wisma 𝐓𝐇𝐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

𝐊𝐓𝐏 (𝐀𝐮𝐝𝐢𝐭,𝐓𝐚𝐱, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)
Website www.ktp.com.my
Instagram https://bit.ly/3jZuZuI
Linkedin https://bit.ly/3sapf4l
Telegram http://bit.ly/3ptmlpn

𝐓𝐇𝐊 (𝐒𝐞𝐜𝐫𝐞𝐭𝐚𝐫𝐢𝐚𝐥, 𝐀𝐜𝐜𝐨𝐮𝐧𝐭/𝐏𝐚𝐲𝐫𝐨𝐥𝐥, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)
Website www.thks.com.my
Facebook https://bit.ly/3nQ98rs

𝐊𝐓𝐏 𝐋𝐢𝐟𝐞𝐬𝐭𝐲𝐥𝐞
(𝐎𝐮𝐫 𝐢𝐧𝐭𝐞𝐫𝐧𝐚𝐥 𝐜𝐨𝐦𝐦𝐮𝐧𝐢𝐭𝐲 𝐟𝐨𝐫 𝐨𝐮𝐫 𝐜𝐨𝐥𝐥𝐞𝐚𝐠𝐮𝐞𝐬)
Tiktok http://bit.ly/3u9LR6Q
Youtube http://bit.ly/3ppmjyE
Facebook http://bit.ly/3ateoMz
Instagram https://bit.ly/3jZpKLo

𝐊𝐓𝐏 𝐂𝐚𝐫𝐞𝐞𝐫
(𝐎𝐮𝐫 𝐞𝐱𝐭𝐞𝐫𝐧𝐚𝐥 𝐣𝐨𝐛 𝐜𝐨𝐦𝐦𝐮𝐧𝐢𝐭𝐲 𝐟𝐨𝐫 𝐢𝐧𝐭𝐞𝐫𝐧𝐬, 𝐠𝐫𝐚𝐝𝐮𝐚𝐭𝐞𝐬 & 𝐞𝐱𝐩𝐞𝐫𝐢𝐞𝐧𝐜𝐞𝐝 𝐜𝐚𝐧𝐝𝐢𝐝𝐚𝐭𝐞𝐬 )
Instagram https://bit.ly/3u2PxHg
Facebook http://bit.ly/3rPxz9o

We are one-stop (2️⃣0️⃣years+ history) audit, tax, secretarial, accounting, and payroll firms that commit to help and grow our clients' business.

#KTP
#Thk
#ktplifestyle
#ktpcareers
#foreignexchange

 


做账人最痛苦的事情是什么?

做账人最痛苦的事情是什么?
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做账人最痛苦的事情是什么?
大家, 不管你是在会计楼收账做 or 在 commercial 做账, 有没有感觉做账就是一个 #$%@
学做账, 做会计，太难了，想放弃了.
很多同行告诉我们 :
• 老板不懂所得税、不懂会计，但又让按他的要求做账.
• 让老板明白公司的钱不是他的钱
• 给人追钱追到没天没日
• 没整理的文件直接送过来
KTP集团执行主席 Koh Teck Peng 将与两名同事 Ms Caroline & Ms Ester，携手举办线上分享交流：'' 做账的痛苦|做人难! 做账更难!|？''
分享内容：
1. 为什么你会加入这一行？
2. 这一行最挑战的是什么？
3. 怎样算才有Full set account经验？
4. 到底theory 和practical 有什么不一样？
5. Account是不是铁饭碗？
6. 其他
交流会活动
• 日期 ：7月21日
• 时间 ：11.15am to 12.15 pm
• 地点 ：𝐙𝐎𝐎𝐌线上学习
不想错过他们的个人经历, 现在就点击链接免费报名预留位子
𝐏𝐒 : 𝐃𝐮𝐞 𝐭𝐨 𝐭𝐡𝐞 𝐦𝐚𝐱𝐢𝐦𝐮𝐦 𝐧𝐮𝐦𝐛𝐞𝐫 𝐨𝐟 𝐩𝐚𝐫𝐭𝐢𝐜𝐢𝐩𝐚𝐧𝐭𝐬 𝐢𝐬 𝟏𝟎𝟎 𝐢𝐧 𝐨𝐮𝐫 𝐬𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞𝐝 𝐙𝐨𝐨𝐦, 𝐰𝐞 𝐦𝐚𝐲 𝐧𝐨𝐭 𝐚𝐜𝐜𝐞𝐩𝐭 𝐚𝐥𝐥 𝐩𝐚𝐫𝐭𝐢𝐜𝐢𝐩𝐚𝐧𝐭𝐬 𝐨𝐧𝐜𝐞 𝐭𝐡𝐞 𝐦𝐚𝐱𝐢𝐦𝐮𝐦 𝐢𝐬 𝐫𝐞𝐚𝐜𝐡𝐞𝐝.

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THK Group of Companies THK Management Advisory Sdn Bhd 200401000220 (638723­X) THK Secretarial PLT 202304003367 (LLP0037327-LGN)

Wisma THK, No. 41, 41-01, 41-02, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru, Johor, Malaysia.
+6012-771 7903 (Secretary Department)
+6012-771 7803 (Account Department)
+607-361 3443

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