Archive for July, 2008
Basics-Bankruptcy In Malaysia
Sometimes during the course of our work, we need to determine whether a particular person is adjudged a bankrupt so what should we do?
We can go to the Director General of Insolvency (DGI) office and obtain a copy of search form for RM1. After filling up the form, the DGI will then send it over [...]
July 18, 2008
Tags: Bankruptcy Posted in: Personal Finance 
No Comments
Major Tax Amendments In Brunei Darussalam
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On  5 th March 2008, it was announced that there were certain major  amendments to the Income Tax Act (Cap 35) effective from 1st January 2008 Â
Of important concerns are the reduction of corporate tax rate, certain tax threshold for SMEs  and the introduction of witholding tax. Previously, companies have been  using management fee to [...]
July 17, 2008
Posted in: ASIA PACIFIC REGION No Comments
Sale And Leaseback-How To Determine whether it is A Finance Lease or Operating Lease And Accounting Treatment
The following are some criteria to classify a sale and leaseback transaction as an operating lease [IAS17.7-14(R.05)]:
A sale has genuinely occurred, where all major risks and rewards were transferred to the buyer;
The buyer (lessor) cannot transfer the leased asset back to the seller (lessee);
The lessee has no bargain repurchase option and the lessor [...]
July 7, 2008
Posted in: Accounting for Lease No Comments
Characteristic Of Finance Lease
Tabulate below are the characteristic that indicates it as a Finance lease:-
Transfer of ownership at the end of the lease term to a lessee [IAS17.10(a)(R.05)].
The lessee has a bargain purchase option [IAS17.10(b)(R.05)].
The lease term covers the major part of the asset’s economic life [IAS17.10(c)(R.05)].
Payments made by a lessee that are a substantial portion of a [...]
July 7, 2008
Tags: Finance Lease Posted in: Accounting for Lease 2 Comments
Accounting For Finance Lease
Summarized below the basic accounting treatment for Finance Lease.
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In The Books of Lessee
At the inception the lessee should recognize the lease as an asset and a liability at an amount equal to the fair value of the leased assets.
The liability for a leased asset should be presented separately in the balance sheet as a current [...]
July 6, 2008
Posted in: Accounting for Lease 2 Comments
Accounting For Operating Lease
Summarized below the basic accounting treatment for Operating Lease.Â
In The Books of Lessee
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The lease payment should be recognized as an expense in the Income Statement on a straight line basis over the lease term.
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In The Books Of Lessor:
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The asset in its balance sheet is under fixed assets
Lease income is recognize in the Income Statement on [...]
July 6, 2008
Tags: Operating Lease Posted in: Accounting for Lease No Comments
Understand The Differences Between Finance Lease And Operating Lease
For those unfamiliar between Finance Lease and Operating Lease, tabulated below in summary some of the differences:
Finance Lease
Operating Lease
Lease period is normally related to the useful life of the asset
Usually of a shorter duration and bears no relation to economic life of the assets.
Is a non-revocable contract.
Is a revocable one.
The lessee has to bear [...]
July 5, 2008
Posted in: Accounting for Lease No Comments
