Archive for the ‘ACCOUNTING TOPICS’ Category

An Example To Illustrate How To Classify A Lease As Finance Lease

Below example demonstrate how to classify a lease into a finance lease:
Question:
ABC Ltd enters a lease agreement on 1 January 2009 to have the right to use the asset for 10 years. The economic life of the asset is 11 years. The fair value of the asset is $12 million. The lessee agreed to pay [...]

December 2, 2009  Tags: Finance Lease, finance lease example  Posted in: Accounting for Lease  No Comments

How To Apportion Hire Purchase Interest-Using Sum Of Digit Method Or Rule Of 78 (Part 3 of 3)

Hire purchase interest are apportioned based on the reducing balance method (part 1) and on Straight line basis(part 2).
This final part 3 looks at another commonly used method to apportion hire purchase interest namely the Sum of digit method of Rule of 78 

December 1, 2009  Tags: hire purchase interest, interest apportioned, rule of 78, sum of digit  Posted in: Hire Purchase  No Comments

How To Apportion Hire Purchase Interest-Straight Line Method (Part 2 of 3)

Part 1 shows the reducing balance method . 
This article looks at how the hire purchase interest is apportioned over the period of the agreement using the Straight Line method. 

November 30, 2009  Tags: apportion interest, hire purchase interest  Posted in: Hire Purchase  No Comments

How To Apportion Hire Purchase Interest-Reducing Balance Method (Part 1 of 3)

Note that the hire purchase interest needs to be apportioned over the period of the agreement. The commonly used methods are the Reducing Balance method, Straight Line method and Sum of Digits or Rule of 78 method 
Below example illustrate the Reducing Balance method to apportion hire purchase interest:- 

November 30, 2009  Tags: apportion interest, hire purchase interest  Posted in: Hire Purchase  No Comments

FRS 112-Reconciliation Of Effective Tax Rate To Statutory Rate

In FRS112 on Income Taxes or IAS 12, there is a requirement for a reconciliation statement between the Effective tax rate (ETR) to the Statutory Rate in the notes to the financial statement wherein the following are normally taken up:

Non allowable expenses
Deferred tax assets not recognized
Expenses not allowed for tax purposes
Non taxable income
Differential tax rate-SME’s [...]

October 20, 2008  Tags: Corporate Tax, Effective Tax Rate  Posted in: Corporate Tax, EVA, Financial Strategy, Others  No Comments

What is Timing Difference in Tax and Timing Differences Versus Permanent Differences

As the taxable profit is computed based on taxation laws which differ from the accounting policies applied to determine the accounting profit, hence the taxable profit and accounting profit can differ. The difference between taxable profit and accounting profit can be classified into:

permanent differences
timing differences

This articles looks at the aforesaid differences and their impact on [...]

September 14, 2008  Tags: Timing differences, What is  Posted in: Others  No Comments

ACCA and MICPA sign Mutual Recognition Agreement(MRA)

At a ceremony on August 13, 2007 at Le Meridian Kuala Lumpur attended by  Dato’ Nordin Baharuddin , MICPA President and Mrs Gillian Ball, ACCA President, a Mutual Recognition Agreement (MRA) was signed by The Malaysian Institute of Certified Public Accountants (MICPA) and ACCA (the Association of Chartered Certified Accountants) with the following details:

provides a [...]

September 8, 2008   Posted in: Accounting Updates/News  No Comments


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