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
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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
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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
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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
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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
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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
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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
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