Course Syllabus
Accounting concept and principles in the conceptual framework.
MFRS 141 Agriculture:
- Objective
- Scope
- Definitions
- Recognition and measurement
- Gains and losses
- Inability to measure fair value reliably
- Government grant
- Disclosure
MFRS 6 Exploration for and Evaluation of Mineral Resources:
- Objective
- Scope
- Recognition of exploration and evaluation assets
- Temporary exemption from MFRS 108 paragraphs 11 and 12 6
- Measurement of exploration and evaluation assets
- Measurement at recognition
- Elements of cost of exploration and evaluation assets
- Measurement after recognition
- Changes in accounting policies
- Presentation
- Classification of exploration and evaluation assets
- Reclassification of exploration and evaluation assets
- Impairment
- Recognition and measurement
- Specifying the level at which exploration and evaluation
- assets are assessed for impairment
- Disclosure
Foreign currency translation
(to be covered in the project)
Impairment of Assets
MFRS 136 Impairment of Assets:
- Objective
- Scope
- Definitions
- Identifying an asset that may be impaired
- Measuring recoverable amount
- Measuring the recoverable amount of an intangible asset with
- an indefinite useful life
- Fair value less costs of disposal
- Value in use
- Recognising and measuring an impairment loss
- Cash-generating unit and goodwill
- Identifying the cash-generating unit to which an asset belongs
- Recoverable amount and carrying amount of a cash generating unit
- Goodwill
- Allocating goodwill to cash-generating units
- Timing of impairment tests
- Impairment loss for a cash-generating unit
- Reversing an impairment loss for an individual asset
- Reversing an impairment loss for a cash-generating unit
- Reversing an impairment loss for goodwill
- Disclosure
Reinforcing the concepts, principals and application of impairment in:
• Agriculture
• Plantation
• Exploration for and evaluation of mineral resources
Fair Value Measurement
MFRS 13 Fair Value Measurement:
- Objective
- Scope
- Measurement
- Definition of fair value
- The asset or liability
- The transaction
- Market participants
- The price
- Fair value at initial recognition
- Valuation techniques
- Inputs to valuation techniques
- Fair value hierarchy
- Disclosure
Current developments at IASB and MASB
Reinforcing the concepts, principals and application of fair value measurement in:
• Agriculture
• Plantation
• Exploration for and evaluation of mineral resources
Group accounts
Group accounts:
• Business Combination
Definition of amalgamation, absorption, acquisition
• Concept of reporting entity
• Recognising and measuring identifiable assets acquired and liabilities assumed
• Recognising and measuring goodwill or gain from a bargain purchase
• Current developments at IASB and MASB
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CSOFP)
• Definition of holding and subsidiary companies
• Group structure – vertical and mixed groups
• Definition of control
• Exclusion and exemption from consolidation
• Regulatory framework for consolidation - in accordance with Financial Reporting Standards
• Preparation of Consolidated Statement of Financial Position (Use the schedule approach to compute goodwill, NCI and group retained profits).
• Pro-forma Accounts -T-account approach is NOT to be used in the teaching and learning.
• Treatment of goodwill and bargain purchase on consolidation
• Pre-acquisition reserve and post acquisition reserve
• Non Controlling Interest (NCI)
• Treatment of preference shares and debentures in the subsidiary
• Dividend (ordinary and preference) payable by the holding and subsidiary company out of post acquisition profit.
• Debenture interest payable by the holding and subsidiary company
• Adjustment for intra-group dividends out of post acquisition profits (ordinary and preference)
• Adjustment for intra-group debenture interest
• Adjustment for inter-company balances and transactions:- Loans, Current Accounts, Debtors and Creditors (items in transit), Bills Payable and Bills Receivables.
• Revaluation of non-current assets (depreciable and non-depreciable) of the subsidiary at the date of acquisition.
• Depreciation adjustment for revaluation of depreciable assets
• Adjustment for unrealized profit on intra-group sale of inventories
• Adjustment for unrealized profit on intra- group sale of non-current assets (depreciable and non-depreciable)
• Bonus shares issued by the holding company
• Bonus shares issued by the subsidiary (out of pre-acquisition reserve and post –acquisition reserve)
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (CSOPL and OCI)
• Preparation of Consolidated Statement of Profit or Loss and Comprehensive Income for acquisition of the subsidiary in prior periods
• Preparation of Consolidated Statement of Profit or Loss and Comprehensive Income for acquisition of the subsidiary during the year
• Preparation of Statement of Changes in Equity (extract) showing the Group Retained Profit and Non Controlling Interest column
• Adjustment for:
o Intra-group dividends
o Intra-group debenture interest
o Intra-group sale of inventories
o Intra-group sale of non-current assets (depreciation adjustment)
o Unrealized profit due to intra-group sale of inventories (unrealized profit on the opening inventories and closing inventories)
o Unrealized profit on intra-group sale of non-current assets.
o Preference shares in the subsidiary
• Group Financial statement analysis and interpretation of financial ratios ( to be covered in the project)
Interim Financial Reporting
MFRS 134 Interim Financial Reporting
• Definition of interim financial reporting
• Explain content of an interim financial report
- minimum components of an interim financial report
- form and content of interim financial statements
- significant events and transactions
- other disclosures
- disclosure of compliance with MFRS
- periods for which interim financial statements are required to be presented
- materiality
• Explain the disclosure in annual financial statements
• Explain recognition and measurement
- same accounting policies as usual
- revenues received seasonally, cyclically or occasionally
- costs incurred unevenly during the financial year
- applying the recognition and measurement principles
- use of estimates
• restatement of previously reported interim period
• FRS for SMEs
Operating Segments
MFRS 8 Operating Segments
• Definition
• Reportable segments
- aggregation criteria
- quantitative thresholds
• Disclosure
- general information
- information about profit or loss, assets and liabilities
• Measurement
- reconciliation
- restatement of previously reported information
• Entity-wide disclosures
- information about products and services
- information about geographical areas
- information about major customers
• FRS for SMEs
MFRS 141 Agriculture:
- Objective
- Scope
- Definitions
- Recognition and measurement
- Gains and losses
- Inability to measure fair value reliably
- Government grant
- Disclosure
MFRS 6 Exploration for and Evaluation of Mineral Resources:
- Objective
- Scope
- Recognition of exploration and evaluation assets
- Temporary exemption from MFRS 108 paragraphs 11 and 12 6
- Measurement of exploration and evaluation assets
- Measurement at recognition
- Elements of cost of exploration and evaluation assets
- Measurement after recognition
- Changes in accounting policies
- Presentation
- Classification of exploration and evaluation assets
- Reclassification of exploration and evaluation assets
- Impairment
- Recognition and measurement
- Specifying the level at which exploration and evaluation
- assets are assessed for impairment
- Disclosure
Foreign currency translation
(to be covered in the project)
Impairment of Assets
MFRS 136 Impairment of Assets:
- Objective
- Scope
- Definitions
- Identifying an asset that may be impaired
- Measuring recoverable amount
- Measuring the recoverable amount of an intangible asset with
- an indefinite useful life
- Fair value less costs of disposal
- Value in use
- Recognising and measuring an impairment loss
- Cash-generating unit and goodwill
- Identifying the cash-generating unit to which an asset belongs
- Recoverable amount and carrying amount of a cash generating unit
- Goodwill
- Allocating goodwill to cash-generating units
- Timing of impairment tests
- Impairment loss for a cash-generating unit
- Reversing an impairment loss for an individual asset
- Reversing an impairment loss for a cash-generating unit
- Reversing an impairment loss for goodwill
- Disclosure
Reinforcing the concepts, principals and application of impairment in:
• Agriculture
• Plantation
• Exploration for and evaluation of mineral resources
Fair Value Measurement
MFRS 13 Fair Value Measurement:
- Objective
- Scope
- Measurement
- Definition of fair value
- The asset or liability
- The transaction
- Market participants
- The price
- Fair value at initial recognition
- Valuation techniques
- Inputs to valuation techniques
- Fair value hierarchy
- Disclosure
Current developments at IASB and MASB
Reinforcing the concepts, principals and application of fair value measurement in:
• Agriculture
• Plantation
• Exploration for and evaluation of mineral resources
Group accounts
Group accounts:
• Business Combination
Definition of amalgamation, absorption, acquisition
• Concept of reporting entity
• Recognising and measuring identifiable assets acquired and liabilities assumed
• Recognising and measuring goodwill or gain from a bargain purchase
• Current developments at IASB and MASB
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CSOFP)
• Definition of holding and subsidiary companies
• Group structure – vertical and mixed groups
• Definition of control
• Exclusion and exemption from consolidation
• Regulatory framework for consolidation - in accordance with Financial Reporting Standards
• Preparation of Consolidated Statement of Financial Position (Use the schedule approach to compute goodwill, NCI and group retained profits).
• Pro-forma Accounts -T-account approach is NOT to be used in the teaching and learning.
• Treatment of goodwill and bargain purchase on consolidation
• Pre-acquisition reserve and post acquisition reserve
• Non Controlling Interest (NCI)
• Treatment of preference shares and debentures in the subsidiary
• Dividend (ordinary and preference) payable by the holding and subsidiary company out of post acquisition profit.
• Debenture interest payable by the holding and subsidiary company
• Adjustment for intra-group dividends out of post acquisition profits (ordinary and preference)
• Adjustment for intra-group debenture interest
• Adjustment for inter-company balances and transactions:- Loans, Current Accounts, Debtors and Creditors (items in transit), Bills Payable and Bills Receivables.
• Revaluation of non-current assets (depreciable and non-depreciable) of the subsidiary at the date of acquisition.
• Depreciation adjustment for revaluation of depreciable assets
• Adjustment for unrealized profit on intra-group sale of inventories
• Adjustment for unrealized profit on intra- group sale of non-current assets (depreciable and non-depreciable)
• Bonus shares issued by the holding company
• Bonus shares issued by the subsidiary (out of pre-acquisition reserve and post –acquisition reserve)
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (CSOPL and OCI)
• Preparation of Consolidated Statement of Profit or Loss and Comprehensive Income for acquisition of the subsidiary in prior periods
• Preparation of Consolidated Statement of Profit or Loss and Comprehensive Income for acquisition of the subsidiary during the year
• Preparation of Statement of Changes in Equity (extract) showing the Group Retained Profit and Non Controlling Interest column
• Adjustment for:
o Intra-group dividends
o Intra-group debenture interest
o Intra-group sale of inventories
o Intra-group sale of non-current assets (depreciation adjustment)
o Unrealized profit due to intra-group sale of inventories (unrealized profit on the opening inventories and closing inventories)
o Unrealized profit on intra-group sale of non-current assets.
o Preference shares in the subsidiary
• Group Financial statement analysis and interpretation of financial ratios ( to be covered in the project)
Interim Financial Reporting
MFRS 134 Interim Financial Reporting
• Definition of interim financial reporting
• Explain content of an interim financial report
- minimum components of an interim financial report
- form and content of interim financial statements
- significant events and transactions
- other disclosures
- disclosure of compliance with MFRS
- periods for which interim financial statements are required to be presented
- materiality
• Explain the disclosure in annual financial statements
• Explain recognition and measurement
- same accounting policies as usual
- revenues received seasonally, cyclically or occasionally
- costs incurred unevenly during the financial year
- applying the recognition and measurement principles
- use of estimates
• restatement of previously reported interim period
• FRS for SMEs
Operating Segments
MFRS 8 Operating Segments
• Definition
• Reportable segments
- aggregation criteria
- quantitative thresholds
• Disclosure
- general information
- information about profit or loss, assets and liabilities
• Measurement
- reconciliation
- restatement of previously reported information
• Entity-wide disclosures
- information about products and services
- information about geographical areas
- information about major customers
• FRS for SMEs
Frequently Asked Questions
Q1 : Discuss the fair value measurement based on malaysian financial reporting standard.
A1 : Based on MFRS 13 Fair Value Measurement, it is divided into 3 level or hierarchy.
Q2 : What are the issues facing the agriculture?
A2 : The use a fair value approach in measuring all types of biological assets.
Q3 : What is actually consolidated financial statements discuss in the group accounts topic?
A3 : Consolidated financial statements is the financial statements of a GROUP in which the assets, liabilities, equity, income, expenses and cash flow of the parent and its subsidiaries are presented as those of a single economic entity.
Q4 : what is chief operating decision maker?
A4 : It identifies a function, that is to allocate resources to and assess the performance of the operating segment of an entity. It may not be a specific title, it can be a CEO, COO or maybe group of executive directors or others.
A1 : Based on MFRS 13 Fair Value Measurement, it is divided into 3 level or hierarchy.
Q2 : What are the issues facing the agriculture?
A2 : The use a fair value approach in measuring all types of biological assets.
Q3 : What is actually consolidated financial statements discuss in the group accounts topic?
A3 : Consolidated financial statements is the financial statements of a GROUP in which the assets, liabilities, equity, income, expenses and cash flow of the parent and its subsidiaries are presented as those of a single economic entity.
Q4 : what is chief operating decision maker?
A4 : It identifies a function, that is to allocate resources to and assess the performance of the operating segment of an entity. It may not be a specific title, it can be a CEO, COO or maybe group of executive directors or others.