With stricter regulations like Sarbanes-Oxley Act coupled with organizations today getting larger and more complex with businesses change very rapidly such as products change, structure changes, new distributions channel emerge and the need to have faster communication of additional information it is therefore vital that we need to establish an efficient reporting concept. Hence, […]

In the earlier articles, the simple concepts of simplify, uniformity, consistency, standardizing and automating have been advocated and practical illustrations  given to demonstrate the benefits of practicing them.

In today’s article I would like to look at a simple automation deploying the shared service folder.

Assuming we have the following scenario:

a holding company with many overseas subsidiaries

every […]

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) […]