Mamee Double Decker (M) & Jasa Kita BHD- Interim Report 2009

CHAPTER 1: FRS 118-REVENUE RECOGNITION

Objective Study
2010
17 October

To prescribe the accounting treatment of revenue arising from certain types of transaction and
events. The primary issue in accounting for revenue is determining when to recognize revenue.
This Standard identifies the circumstances in which these criteria will be met, therefore revenue
will be recognized. It also provides practical guidance on the application of these criteria.

Jasa Kita Berhad (239526-M) Mamee-Double Decker Berhad ( 222363-T) 5

 Mamee Double Decker (M) & Jasa Kita BHD- Interim Report 2009

PARAGRAPH DESCRIPTION MAMEE JASA KITA

PARA 14 FRS mentioned that revenue from this kind of transaction
shall be recognized when all of the following conditions have
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been satisfied:
a) A significant ownership of risks and rewards of the
goods has been transferred from the seller to the buyer
b) The seller did not retain any continuing managerial
involvement and effective control over the good sold YES YES
c) The amount of revenue can be measured reliably
d) It is probable that economies benefits of the
transaction will flow to the entity
e) The cost incurred or to be incurred in respect of the
transaction can be measured reliably
PARA 20 FRS mentioned that for a service-oriented transaction, when
the outcome of the transaction can be estimated reliably, the
revenue shall be recognized by reference to the stage of
completion at the balance sheet. The outcome of the - YES
transaction can be estimates reliably when the following
condition are satisfied;
a) The amount of revenue can be measured reliably
b) It is probable that economic benefits associated with
the transaction will flow to the entity
c) The stage of completion of the transaction at the
balance sheet date can be measured reliably; and
d) The cost incurred for the transaction and the cost to
complete the transaction can be measured reliably
PARA 3O FRS states that revenue from interest, royalties and dividends
should be recognized based on the following based on the
following bases: YES YES
a) Interest shall be recognized using the effective interest
method
b) Royalties shall be recognized on an accrual basis in
accordance with the substance of the relevant
agreement
Jasa Kita Berhad (239526-M) Mamee-Double Decker Berhad ( 222363-T) 6
c) Dividends shall be recognized when the shareholder’s
rights to receive payment is established.
 Mamee Double Decker (M) & Jasa Kita BHD- Interim Report 2009

2010
17 October

(Source from FRS Requirement & Applications in Financial Accounting & Reporting, PEARSON)
CHAPTER 2: FRS 5(PART 2)-NON CURRENT ASSETS HELD FOR SALE
AND DISCONTINUED OPERATIONS

Objective Study

To specify the accounting for assets held for sale and the presentation and disclosure of
discontinued operations. Specifically, the requirements of the FRS 5 are:
a) Assets that meet the criteria to be classified as held for sale are to be measured at the
lower of carrying amount and fair value, less costs to sell and depreciation on such assets
to cease; and
b) Assets that meet criteria to be classified as held for sale are to be presented separately on
the face on the balance sheet. The results of discontinued operations should be presented
separately in the income statement.

# This accounting policy is not applicable to both of the company.

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 Mamee Double Decker (M) & Jasa Kita BHD- Interim Report 2009

2010
17 October

(Source from FRS Requirement & Applications in Financial Accounting & Reporting, PEARSON)

CHAPTER 3: FRS 108-ACCOUNTING POLICIES, CHANGES IN ACCOUNTING

ESTIMATES AND ERRORS

Objectives Study

To prescribe the criteria for selecting and changing accounting policies, together with the
accounting treatment and disclosure of changes in accounting policies, changes in accounting
estimates and corrections of errors. The standard is intended to enhance the relevance and
reliability of an entity’s financial statements and the comparability of those financial statements
over time and with the financial statements of other entities.

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PARAGRAPH DESCRIPTION MAMEE JASA KITA
PARA 23-25 Provide limitations on retrospective application. In case of
Mamee Double Decker (M) & Jasa Kita BHD- Interim Report 2009
impracticability, to determine either period-specific or the
cumulative effect of change, then the entity allowed to apply YES YES
the prospective method.
Prospective application of a change in accounting policy refers
2010 to applying the new accounting policy to transaction, other
17 October
events and conditions occurring after the date as at which the
policy is changed
PARA 5 Accounting policies are the specific principles, bases,
conventions, rules and practices applied by an entity in
preparing and presenting financial statements. The below YES YES
discussion on accounting policies are divided into two parts;
a) Selection of accounting policies
b) Changes of accounting policies
Retrospective application refers to applying a new accounting
policy to transactions, a new accounting policy to transactions,
and other events and conditions as if that policy had always
been applied. In retrospective application, the entity shall
adjust the opening balance of each affected component of
equity for the earliest period presented and the other
comparative amount disclosed for each prior period presented
as if new accounting policy had always been applied.

A change in accounting estimate is an adjustment of the

carrying amount of an asset or liability, or the amount of the
periodic consumption of an asset that results from the
assessment of the present status of, an expected future benefits
and obligations associated with assets and liabilities.

Errors: omissions from, and misstatements in, the entity’s

financial statements for one or more prior periods arising from
a failure to use, or misuse of, reliable information that:
a) Was available when financial statements for those
periods were authorized for issue and
b) Could reasonably be expected to have been obtained
and taken into account in the preparation and
Jasa Kita Berhad (239526-M) Mamee-Double Decker Berhad ( 222363-T)
presentation of those financial statements.
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PARA 13 Stated that an entity shall select and apply its accounting
policies consistently for similar transactions, other events and
 Mamee Double Decker (M) & Jasa Kita BHD- Interim Report 2009

2010
17 October

(Source from FRS Requirement & Applications in Financial Accounting & Reporting, PEARSON)

CHAPTER 4: FRS 110- EVENT AFTER THE BALANCE SHEET DATE

Objective Study

To prescribe when an entity should adjust its financial statements for events after the balance
sheet date; and the disclosures that an entity should give regarding the date when the financial
statements were authorized for issue and about events after the balance sheet date. This standard
also specifies that if events after the balance sheet date show that a going concern assumption is
not appropriate; the entity should not prepare its financial statements on a going concern basis.

Jasa Kita Berhad (239526-M) Mamee-Double Decker Berhad ( 222363-T)

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 Mamee Double Decker (M) & Jasa Kita BHD- Interim Report 2009

PARAGRAPH DESCRIPTION MAMEE JASA KITA

PARA 3 Events after the balance sheet date are events favourable and
2010
17 October unfavourable that occurs between the balance sheet date and
date when the financial statements are authorized for issue. YES YES
a) Adjusting events
Provide evidence of condition that existed at the balance
sheet date. The adjusting events require retroactive
regonizition and affect the amounts to be reported for
the preceding accounting period.

b) Non adjusting events

Events that is indicative of conditions that arose after
the balance sheet. The entity no need to adjust the
amounts recognized in the financial statements. These
events no evidence existed on the date of balance sheet
and should disclose.
PARA 12 If an entity declares dividends to holders of equity instruments
after the balance sheet date, then the entity shall not recognize
those dividends as liability at the balance sheet date. YES YES
i. If dividend declared before the balance sheet date, then
the entity needs to recognized the dividends as liability
in the balance sheet date
ii. If the dividends are declared after the balance sheet
date, then the entity needs to disclose the dividends in
the notes to the financial statements.
PARA 14 An entity should not prepare its financial statements on a going
concern basis if the management determines after the balance
sheet date either that it intends to liquidate the entity or to cease YES YES
trading, or that it has no realistic alternative but to do so.

Jasa Kita Berhad (239526-M) Mamee-Double Decker Berhad ( 222363-T)

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 Mamee Double Decker (M) & Jasa Kita BHD- Interim Report 2009

2010
17 October

(Source from FRS Requirement & Applications in Financial Accounting & Reporting, PEARSON)

CHAPTER 5: FRS 137-PROVISIONS, CONTIGENT LIABILITIES AND CONTIGENT

ASSETS

Objective Study

a) Ensure that proper recognition criteria and measurement bases are applied to provisions,
contingents liabilities, and contingents assets; and
b) Suitable information is disclosed in the notes to enable users to understand their nature,
timing and amount

Jasa Kita Berhad (239526-M) Mamee-Double Decker Berhad ( 222363-T)

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 Mamee Double Decker (M) & Jasa Kita BHD- Interim Report 2009

PARAGRAPH DESCRIPTION MAMEE

Provisions
2010
17 October a) Recognition of provisions
- Present obligation and past events YES YES
- Probable outflow of resources embodying
economics benefits
- Reliable estimation of the obligation
b) Measurement
- Best estimate
- Risks and uncertainties
- Present value
- Future events
- Expected disposal of assets
Contingent liability;
a) A possible obligation that arises from past events and
whose existence will be confirmed only by the YES YES
occurrence or non occurrence of one or more
uncertain future events not wholly within the control
of entity; or
b) A present obligation that arises from past events but is
not recognized because:
- It is not probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation
- The amount of obligation cannot be measured
with sufficiently reliability.

Jasa Kita Berhad (239526-M) Mamee-Double Decker Berhad ( 222363-T)

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 Mamee Double Decker (M) & Jasa Kita BHD- Interim Report 2009

2010
17 October

(Source from FRS Requirement & Applications in Financial Accounting & Reporting, PEARSON)

CHAPTER 6: FRS 112-INCOME TAXES

Objective Study

This FRS deal with the principal issue in accounting for income taxes of how to account for the
current and future tax consequence of:
a) The future recovery(settlement) of the carrying amount of assets (liabilities) that are
recognized in an entity’s balance sheet; and
b) Transactions and other events of current period that are recognized in an entity’s financial
statements.

Jasa Kita Berhad (239526-M) Mamee-Double Decker Berhad ( 222363-T)

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 Mamee Double Decker (M) & Jasa Kita BHD- Interim Report 2009

PARAGRAPH DESCRIPTION MAMEE

FRS 112 defines tax base of an asset as the amount that will
2010
17 October be deductible for tax purposes against any taxable economic
benefits that will flow to the entity when it recovers the YES YES
carrying amount of the asset.
FRS112, tax base of liability is carrying amount, less any
amount that will be deductible for tax purposes in respect of
that liability in future periods.
FRS 112 defines taxable temporary differences as temporary
differences that will be result in taxable amounts in
determining taxable profit (tax loss) of future periods when YES YES
the carrying amount of the asset or liability is recovered or
settled.
PARA 15 Deferred tax liability shall be recognized for all taxable
temporary differences, except to the extent that the deferred
tax liability arises from: YES YES
a) The initial recognition of goodwill
b) The initial recognition of an asset or liability in a
transaction which:
- Is not a business combination; and
- At the time of transaction, affects neither
accounting profit not taxable profit(loss).

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 Mamee Double Decker (M) & Jasa Kita BHD- Interim Report 2009

2010
17 October

(Source from FRS Requirement & Applications in Financial Accounting & Reporting, PEARSON)

CHAPTER 7: FRS 107(PART 1)-CASH FLOW STATEMENT

Objective Study

To prescribe the presentation of a cash flow statement by a reporting entity. A cash flow
statements provides information about historical changes in cash and cash equivalent during the
reporting period. A cash flow statement is necessary to help users in making assessment on
liability of an entity to generate cash and utilize it, and assist users in making an economic event.

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PARAGRAPH DESCRIPTION MAMEE JASA KITA
PARA 10 In cash flow statements, all cash receipts and payments
Mamee Double Decker (M) & Jasa Kita BHD- Interim Report 2009
involved during the reporting period need to be reported. The
reports of all cash receipts and payments of an entity shall be YES YES
categorized into three main activities:
a) Operating activities
2010 b) Investing activities
17 October
c) Financing activities
PARA 14 Cash flow from operating activities refers to any cash receipts
and payments that are derived from the principal revenue-
generating activities of entities. Operating activities that do YES YES
not involve in cash transaction shall be excluded in the
determination of cash flow from operating activities.
PARA 16 Cash flow from investing activities refers to any cash receipts
and payments that are derived from assets or any resources
that are used to generate future income and cash inflow. It YES YES
relates to cash transactions involving the acquisition and
disposal of non-current assets.
PARA 17 Cash flow from financing activities refers to any cash receipts
and payments obtained from or paid to investors and
creditors-the providers of capital to the entity. This includes YES YES
cash receipts and payments related to issuance or buyback of
shares or other equity instruments from investors, cash
receipts and payments related to issuance or repayment of
debentures, loan, mortgage or other short and long term
borrowing from creditors.
PARA 18 In preparing the cash flow statement, an entity can choose to
present the cash flow from activities either by using the direct
method or indirect method. YES YES
PARA 18(b) The indirect method focuses on the difference between net
income and cash flow from operation activities. Under
indirect method, the net cash flow from operating activities is YES YES
determined by adjusting the net income or loss for the period
with any changes in inventories, receivables, and payables;
adjusting the non cash items, deferred and accrued items, and
it’s related to investing and financing activities.
PARA 26 Any cash flows in a foreign currency should be recorded in
Jasa Kita Berhad (239526-M) Mamee-Double Decker Berhad ( 222363-T)
the entity’s reporting currency (not in the foreign currency)
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by applying the actual exchange rate on the transaction date. YES YES
The gain or loss from exchange is not a cash flow item, but
 Mamee Double Decker (M) & Jasa Kita BHD- Interim Report 2009

2010
17 October

(Source from FRS Requirement & Applications in Financial Accounting & Reporting, PEARSON)

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