Extracted from MASB

FRS 102 Inventories take effect for annual periods beginning on or after 1 January 2006
The main changes from FRS 102 2004 are tabulated as follows:

Section
Requirements

Objective and Scope

The objective and scope paragraphs of FRS 102-2004 were amended by removing the words ‘held under the historical cost system’, to clarify that the Standard applies to […]

This article is not regarding the discussion of the adequacy of provision /accruals nor to understand how the FRS handles it.

Specifically, this article is to discuss the way(s)  we book in provision or accrual in our books of accounts.

Generally, there are two (2) ways of accounting treatment:
(1) Partial method and
(2) 100% reversal method
For the Partial Method:

The accounting entry is as follows:
Debit: Expenses (Income Statement) […]

Further to my earlier article on bonus issue, reported in The Star:
 
“ Bursa Malaysia Securities Bhd (Bursa Securities) has announced that public listed companies (PLCs) whose accumulated losses exceed their reserves are not allowed to undertake bonus issues “. 

Salient points extracted:

In a statement announcing amendments to its listing requirements and Mesdaq market listing requirements in relation […]

An alternative strategy when you have a small capital base, future prospects seems bright and the environment is good it’s time to go for bonus issue.
Bonus issue can be quite prevalent hence can be one of the popular company alternative to attract investors to participate in the listed company’s shares, this article seeks to look […]

In my first part of article, I have gone through the other details of bonus issue leaving only the illustration and the accounting treatment portion untouched.
So let’s look at the below simple illustration to demonstrate a pre and post bonus issue in a company’s balance sheet.
To reinforce the fact that my earlier article have mentioned […]