This document discusses provisions, contingent liabilities, and contingent assets under MFRS 137. It defines each term and provides examples. A provision is a liability of uncertain timing or amount from a present obligation where payment is uncertain. Recognition requires a past event, probable outflow of resources, and reliable estimate. A contingent asset is a possible asset from past events dependent on uncertain future events. It may be recognized if virtually certain. A contingent liability is a possible obligation from past events dependent on uncertain future events. It may require disclosure if probable or possible, but not if remote.
Hi everyone!
This is the document on Malaysian Private Entities Reporting Standard (MPERS). Hope it helps!
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Konsep syarikat, konsep tirai perbadanan dan pengecualiannya, jenis-jenis sya...Intan Muhammad
Please do check Companies Act 2016 yeah :)
P/S : Hi, I am sharing my personal notes of law-related subjects. Some parts of them are explained in a very informal-relaxed way and mix of languages (BM and English). Secondly, as law revolves every day, there will be outdated parts in my notes. Two ways of handling it.. (1) double check with the latest law and keep it to yourself (2) same with No. 1 coupled with your generosity to share with us, the LinkedIn users (hiks ^_^). Till then, have a nice day!
Hi everyone!
This is the document on Malaysian Private Entities Reporting Standard (MPERS). Hope it helps!
Sign up for OfficeCentral at http://www.OfficeCentral.com.my
Konsep syarikat, konsep tirai perbadanan dan pengecualiannya, jenis-jenis sya...Intan Muhammad
Please do check Companies Act 2016 yeah :)
P/S : Hi, I am sharing my personal notes of law-related subjects. Some parts of them are explained in a very informal-relaxed way and mix of languages (BM and English). Secondly, as law revolves every day, there will be outdated parts in my notes. Two ways of handling it.. (1) double check with the latest law and keep it to yourself (2) same with No. 1 coupled with your generosity to share with us, the LinkedIn users (hiks ^_^). Till then, have a nice day!
A Guide to UBS Accounting Task : The simple steps to record business transactionrosfashihah
Nowadays, there was much software that was developed to facilitate business recording system. One of outstanding software & usually used by the business was UBS ACCOUNTING SOFTWARE, was developed by SAGE Software Sdn Bhd. There are several advantages of using this software among other such as this software demand minimum knowledge of computer and also it was designed such a user friendly way and comply with international accounting standards. So that, A GUIDE TO UBS ACCOUNTING TASK is valuable tools in understanding in preparing UBS tasks.
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A group assignment for the subject 'Budget Administration', Master of Public Policy, University Malaya. This subject was taught by Tan Sri Sulaiman Mahbob, former Director-General of Economic Planning Unit, Prime Minister's Department and current Chairman of Felda Global Ventures (FGV).
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If you weren’t already aware, The Insurance Act comes into effect on 12 August 2016. Which means that anyone who has responsibility for sourcing insurance needs to be taking action - now. http://www.advantageuk.net/
A Guide to UBS Accounting Task : The simple steps to record business transactionrosfashihah
Nowadays, there was much software that was developed to facilitate business recording system. One of outstanding software & usually used by the business was UBS ACCOUNTING SOFTWARE, was developed by SAGE Software Sdn Bhd. There are several advantages of using this software among other such as this software demand minimum knowledge of computer and also it was designed such a user friendly way and comply with international accounting standards. So that, A GUIDE TO UBS ACCOUNTING TASK is valuable tools in understanding in preparing UBS tasks.
As the title suggest, this e-book consists of steps used in preparing the task in chronological orders. So that, the viewer will understand the flow during preparing the task using UBS Accounting software according to four (4) phases of recording procedure, which are function & structure, processing, reporting & analyzing through reports shown.
Evolution of budgeting system in malaysia (10 page)Mohd Hasim Ujang
A group assignment for the subject 'Budget Administration', Master of Public Policy, University Malaya. This subject was taught by Tan Sri Sulaiman Mahbob, former Director-General of Economic Planning Unit, Prime Minister's Department and current Chairman of Felda Global Ventures (FGV).
Slaid pembentangan GUL2023 berkaitan perjanjian tanpa balasan - undang-undang perniagaan. Link untuk menonton video yang menjelaskan perjanjian tanpa balasan: https://www.youtube.com/watch?v=k5lO4Knzgg4&t=9s&list=PLTZZFQsEitJLpQdiPQ-1y5zUV7RrxZseJ&index=2
If you weren’t already aware, The Insurance Act comes into effect on 12 August 2016. Which means that anyone who has responsibility for sourcing insurance needs to be taking action - now. http://www.advantageuk.net/
Program : BA(Hons) Accounting & Finance - Year 3 - Final Year
Module : International Corporate Reporting - Final Year Assessment
Subject : IAS 37 Provisions, Contingent Liabilities, Contingent Assets
We are happy to share 3rd Issue of our magazine Ingenious.
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5. RBI launches e - Rupee by Geeta Mohan. P
6. Trade Infra in India by Bharathi Srinivasan
7. Rise & Fall of Crypto Exchange FTX by Savita Pillai
8. Role & Importance of professional insurance advisor Part 2 by Ankur Shah
9. Last RBI MPC meet statement
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VCES is a golden opportunity for the Defaulters and Stop Fillers to regularise their acts without being penalized for their ignorance of Law and thereafter to ensure strict adherence of this Law.
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DID YOU KNOW??
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Homework Assignment – Chapter 51. When a financial analyst exa.docxadampcarr67227
Homework Assignment – Chapter 5
1. When a financial analyst examines the credit risk of a company, it is common that he or she uses a set of factors that all begin with the letter "C." Each factor provides a consideration that enters into the lending decision. List and discuss how each of the factors affects a company's credit risk.
ANS:
1.
Circumstances leading to need for the loan - The reasons that the company needs to borrow affect the riskiness of the loan and the likelihood of repayment.
2.
Credit History - Has the firm borrowed in the past and successfully repaid the loan.
3.
Cash flows - Is the lender generating sufficient cash flows to pay interest and repay the principal on a loan rather than having to rely on selling the collateral.
4.
Collateral - Is the collateral sufficient to repay the loan and does the lender have the right to take possession of the collateral.
5.
Capacity for debt - Has the company borrowed up to its capacity or is there a margin of safety remaining.
6.
Contingencies - Are there any events on the horizon that would harm the company if their outcome is negative.
7.
Character of management - An intangible factor, has the management team been successful in difficult times, are they honest and forthcoming.
8.
Communication - Developing relations with lenders requires effective communication both initially and on an ongoing basis.
9.
Conditions - What are the restrictions or covenants put in place to protect the lender.
Each of these factors must be examined in the multivariate manner so that the total credit risk profile of the company can be determined.
2. Given the following information, calculate for Year 2 the number of days of working capital financing the firm will need to obtain from other sources?
Year 1
Year 2
Accounts Receivable, net
$ 518
$ 562
Accounts Payable
203
192
Inventory
535
564
Credit Sales
3,205
3,636
Cost of Goods Sold
2,037
2,294
Selling and Admin. Expense
1,081
1,131
3. Refer to the financial statement data for Patriot Corp. for 2011 and 2010. Complete the table by computing the ratios.
Patriot Corp.
Balance Sheet
As of December 31,
2011
2010
Assets:
Cash and Cash Equivalents
$ 69,000
$ 55,250
Accounts Receivable
126,500
80,750
Inventory
92,000
63,750
Current Assets
287,500
199,750
Equipment
194,063
148,750
Less: Accumulated depreciation
-38,813
-29,750
Equipment-Net
155,250
119,000
Land
132,250
106,250
Total assets:
$575,000
$425,000
Liabilities:
Accounts Payable
$ 69,000
$ 42,500
Accrued Salaries Payable
51,750
42,500
Rent Expense Payable
35,750
28,500
Income Tax Payable
4,788
1,250
Current Liabilities
161,288
114,750
Long-term note payable
172,500
102,000
Total Liabilities
333,788
216,750
Stockholders’ Equity:
Common stock
115,000
89,250
Retained earnings
126,212
119,000
Total liabilities and stockholders’ equity:
$575,000
$425,000
Patriot Corp.
Income Statement
For the year ended December 31,.
The Insurance Act 2015 comes into effect today, meaning that any insurance or reinsurance contract entered into or varied from today will be governed by the Act.
The effects of the Act are far reaching: changing insurance legislation that has been in place for over a century, and impacting on any transaction governed by the laws of England, Wales, Scotland and Northern Ireland, with a potential to affect organisations across the world.
Prudence concept is one of the basic concepts used when the financial statements are being prepared by the accountants. It is another form of accrual accounting where expenses are recorded as and when incurred not when actually paid. Same goes for revenue where revenue is recorded when earned and not when actually received.
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Global Sustainability Best Practices - Global Reporting Initiative, International Integrated Reporting Council, Sustainability Accounting Standards Board, and the Value Reporting Foundation
How to Create Map Views in the Odoo 17 ERPCeline George
The map views are useful for providing a geographical representation of data. They allow users to visualize and analyze the data in a more intuitive manner.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
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The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
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2. MFRS 137 – PROVISIONS, CONTINGENT
LIABILITIES & CONTINGENT ASSETS
At the financial year end there could be events or situations where the
outcome is uncertain or dependent on another event taking place, which
may affect the financial position or performance of the reporting period.
In this topic under MFRS 137 we will discuss on three items:
1.Provisions
2. Contingent liabilities
3. Contingent assets
WATCH IT ON YOUTUBE – MFRS137 (Malaysian)
https://www.youtube.com/watch?v=tt-7oSZ5ZCs
WATCH IT ON YOUTUBE – IAS 37 (International)
https://www.youtube.com/watch?v=cM9YQUegKUs
3. MFRS 137 – PROVISIONS, CONTINGENT
LIABILITIES & CONTINGENT ASSETS
PROVISION
• a liability of uncertain timing or amount
• Present obligation but the payment date / amount to be paid is
uncertain
• Financial statements should include all information necessary
and all uncertainties must be accounted for consistently
• Provision for doubtful debts, provision for warranties
RECOGNITION OF PROVISIONS:
• An entity has a present obligation as a result of a past event
• It is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation
• A reliable estimate can be made of the amount of the obligation
4. EXAMPLE - PROVISION FOR WARRANTY
ABC Bhd sells goods with a warranty under which the customers
are covered for the cost of repairs of any manufacturing defects
within six months of purchase.
ABC estimates that for minor defects, the repair will cost RM1.4
million and major repairs will cost RM3 million.
The entity’s past experience and future expectation indicate that
there is an 80% probability that the goods will have no defects,
15% minor repairs and 5% major repairs.
Required:
Determine whether the entity has to accrue any expenses and
liability and of so, how much should be provided for?
5. EXAMPLE - PROVISION FOR WARRANTY(SOLUTION)
The entity has a present legal obligation as a result of selling the
goods.
The obligation is the warranty provided.
The amount of warranty cost to ABC Bhd has to be estimated and
the best estimate would be as follows:
(80% x 0) + (15% x RM1.4 million) + (5% x RM3 million)
= 0 + 210,000 + 150,000
= RM 360,000
6. CONTINGENCIES – CONTINGENT ASSET
MFRS DEFINITION:
• A possible ASSET that arises from past events and whose
existence will be confirmed only on the occurrence or non-
occurrence of one or more uncertain future events not wholly
within the control of the entity
CLASSIFICATIONS:
• Virtually certain – the related asset and income are recognised
• Probable – a disclosure is required as it is probable there will be
an inflow of economic benefits
• Possible and remote – not recognised and not disclosed too
7. EXAMPLE – CONTINGENT ASSET
In November 2016, a poultry farmer had to destroy all his poultry
due to a government order to contain the spread of the avian
flu.
On 15 December 2016, the government made a press statement
stating that it would pay a compensation to all the poultry
farmers.
On 10 July 2017, the farmer received a letter specifying the amount
he would receive.
Required:
Can the farmer recognise the asset in 2016?
8. CONTINGENCIES – CONTINGENT ASSET
(SOLUTION)
The farmer has to be virtually certain of the receipt.
A press statement is not an evidence of a virtually certain situation.
In 2016 a press statement was released but is not a strong
evidence and can be classified as possible and remote, in which
no recognition and disclosures are required.
In 2017, the farmer received a letter confirming the amount he
would receive, which is considered as virtually certain.
Therefore in 2017 he can recognise the asset on the receipt of the
document confirming the compensation.
9. CONTINGENCIES – CONTINGENT LIABILITIES
MFRS DEFINITION:
• A possible OBLIGATION that arises from past events and whose
existence will be confirmed only on the occurrence or non-occurrence
of one or more uncertain future events not wholly within the control of
the entity
RECOGNITION:
• Probable– considered a liability. If the amount can be estimated reliably
it should be accounted for. Guidance – if it is more than 50% then it is
probable
• Possible – should not be recognised but a disclosure should be made in
the FS by a way of a note. Guidance – if it is below than 50% then it is
possible
• Remote – Guidance – if it is less than 30% then it is remote. It need not
be disclosed.
10. EXAMPLE – CONTINGENT LIABILITIES
A company is engaged in a legal dispute. The outcome is yet unknown.
A number of possibilities arise:
• On 1 January 2016 possible damages are RM 100,000 but it is not
expected to have to pay them.
• On 3rd March 2016 the company is expected to have to pay the damages
but is unable to estimate the amount in which the RM100,000 estimated
earlier could be wrong.
• On 5th June 2016, the lawyers informed that the company may not be at
fault and could be acquitted.
• On 10th August the court announced that the company has to pay
damages of RM250,000 to the victim.
Required:
State the possible obligations if any as per MFRS 137 for each of the
situations above.
11. EXAMPLE – CONTINGENT LIABILITIES
(SOLUTION)
A company is engaged in a legal dispute. The outcome is yet
unknown.
A number of possibilities arise:
• On 1 January 2016 possible damages are RM 100,000 but it is
not expected to have to pay them. – Possible contingent
liability, disclose by way of a note
• On 3rd March 2016 the company is expected to have to pay the
damages but is unable to estimate the amount in which the
RM100,000 estimated earlier could be wrong. - Possible
contingent liability, disclose by way of a note
• On 5th June 2016, the lawyers informed that the company may
not be at fault and could be acquitted. – Remote contingent
liability. No disclosure needed.
• On 10th August the court announced that the company has to
pay damages of RM250,000 to the victim. – Probable contingent
liability. The amount can be estimated reliably and should be
accounted for.