September 27, 2011

Investment, Opportunity?

Invest abroad would exposes individual with outside tense and unexpected  outcome. Market sentiment and irrational influences has brought down value to zero. However, to invest outside Malaysia, there are several characteristics and techniques need to be scrutinized.

a) Invest in attractive sector outside which not found inside
b) companies offer global exposure
c) companies that derives revenue almost from part of the world

However, research must be done thoroughly before any outside investment undertaken. The existence of internet does make the investment  becomes more sophisticated, but to international investor, more exposure to the fund itself is vital in making decision. " Investing in overseas market come with high potential, but be mindful of the risk inherent in venturing beyond  the familiarity of your home shores".

Risk:

a) Currency - major risk. The use of forward contract can help to hedge out this particular risk. To mitigate risk, diversifies portfolio across different  markets.
b)  country political
c) liquidity risk

Where?

Try to invest in establish, accepted, widely accessible,authorized and popular and also liquid, large-capitalization markets such as US,UK,Germany,HK,Australia and Singapore. These countries bring up freely available research information to investors, as a guide and sophisticated approach to potential or existing investors.

Forex Technique

Forex trading became more sophisticated after 2008, which all types of indicator are more irrational and the market was less predictable. It is more challenging to stay in the game with out in-depth technical analysis. Back in 2000 till 2007, the basic tools for Forex trading is sufficient by using Fibonacci, with a strong bases in market sentiment and fundamental analysis.

Forex Trading, a difference it makes.

June 16, 2011

DISPOSAL OF SHARES IN SUBSIDIARY

There are consolidated issue when dispose shares in subsidiary.
  • the resultant relationship between the investor and the investee
    • the parent ceases to hold any shares in the investee
    • remain parent but minority interest increases
    • investee becomes associate
    • investee become simple investment
    • less monitoring and involvement
  • goodwill on consolidation, amortised or not?
    • may writen off against reserves or
    • amortized through pnl or
    • carried in the books as non-depreciable assets- to be eliminated when corresponding shares are disposed of
  • determination of gain or loss on disposal of the shares in the investee
    • difference between proceeds received(or receivables)  -  carrying value of the assets.
    • for consolidated purposes: - proceeds are offset with the proportionate net assets of the subsidiary at the date of disposal.
      • the net net impact on the disposal of shares in investor's books is that, the gain on disposal in Board/Company level is higher that Group Level. This is due to proceeds -  net assets on the disposal date and not based on date of acquiring
* resultant = occuring  or produced as a result 

    June 15, 2011

    CHARISMATIC LEADERSHIP

    Max Weber define charisma as "gift", as a certain quality of an individual personality. One of the characteristics is they have a vision, willing to take personal risk to achieve that vision, sensitive to follower needs and exhibit behaviour that are out of ordinary.

    Charismatic leader are likely to be :
    • extravert's
    • self-confident
    • achievement oriented
    The issue to discuss, are charismatic leader born or made?

    Few research found that charisma attitude are inherited and laid in their blood vessels. However, some research have concluded that these character are build in exchange to surroundings and changing environments.

    June 10, 2011

    FRS 139 - Financial Instruments:Recognition and Measurement

    Common examples of financial instruments are:
    • cash
    • demand and time deposits
    • commercial paper
    • AR & AP
    • Notes Receivables & Payables
    • Loans Receivables & Payables
    • Debt and Equity Securities
    • Asset Backed Securities
    • Options
    • Rights
    • Warrants
    • Futures contracts
    • Forward contracts
    • Swaps

    Technology Ahead

    Technology has been around us for decades. What is important is that, how much we benefit from it? And how does technology transforms organization towards achieving its objective. "Technology is key to achieving higher operational efficiency and innovative capability" says Tan Sri Dato' Sri Dr Teh Hong Piow.

    Technology speed up operation, manage customer relationship and educate its staff on product offerings. Various organization uses technology as part of their operation counter-back element. Loan processing, product making, ticketing, service delivery are common element of technology advancement  while managing customer relationship are common to hotel and service industry.

    Technology permits greater efficiency and scale yield cost advantages that enable us to provide competitive lending and deposit rates as well as superior service. Bank of Philippine Islands for example, reports a yoy 33% income increase and 16% loan growth, as well as continued market leadership in electronic banking,consumer loans,asset management,cash management and insurance.Source: Reader's Digest June 2011)

    This has proven that technology actually transform the whole set of attitude towards achieving organization's goal tandemly. Product offerings also at ease and affordable to potential customers. Banks that fully utilized its
     technology advancement are always on top of others. They are more close to potential customer in terms of managing capabilities, trustworthiness and also contentment..

    June 7, 2011

    FRS 140 - Investment Property

    Properties used for operating the business (generate income) termed owner occupied properties which come under FRS 116 Property,Plant and Equipment. Property held for invesment dealt with in FRS 140 - Investment Property.


    FRS 140 defines Investment Property as  
    Land or a building or part of a building or land and building  held (by the owner or under finance lease) to earned rental  or for capital appreciation or BOTH.

    Owner occupied properties and those held for sale in the ordinary course of business do not qualify as Invesment   Properties.


    Invesment Property:
    • land held for long -term (>5yrs) capital appreciation-ex land for housing,public utilities etc
    • land held for undetermined future use - ex remote land for plantation
    • building owned
    • building that is vacant but is held to be leased out under operating leased
    How to recognize?
                                Recognize as investment properties only after:
                                - construction work has completed
                                - any rental received is negotiated at arm's length
                                - at market rate
    •  it is probable that future economics benefit associated with the investment property will flow to the enterprise - future economic benefit (rental income- capital appreciation)
    • the cost of the asset to the investment property can be measured reliably ( cost allocation and determination)                             

    June 6, 2011

    Accounting Software

    Before any companies opted to change their accounting software, there a few basic elements to be addressed:
    1. Ask yourself - are we ready to change?
    2. Ask your subordinates - are you to ready change and be changed?
    3. What is the current problem, critical or moderate?
    4. Does top management support the changes?
    5. When is the suitable time to change, early, mid or end of the year?
    6. Who will be the champion, end user, OIC,managers or top management?
    7. Have you identified inherited problems, or , maybe potential problems?
    8. If you are ready to change, do not turn back.
    9. Be with it, lay with it and eat with it.
    10. Always anticipate problems, hazards, stranded and clash.
    11. Finally, where's the money?????????
    I have gained experiences in mitigating risk of failure and develop downturn. The needs for total understanding and total objectives is more crucial than the systems itself.

    2011 Tax Changes

    Budget 2011 considered a very "plain", not much announcements made and proposal affected the individuals or companies . The theme or objectives of transforming to high income nation seen as replicating the norms of human evolution stages. Human develop and expand towards moving forward. The significant changes that human have to face is absolutely transformation in terms of standard of living, cost per day and also what is next waiting.

    No tax reductions in Budget 2011 neither no many tax incentives introduce. What really happen? The answer is that, Malaysia has to be more tolerate in terms of delivering what people wants and needs. If we were demanding on scarce sources, then, the impact to survive is last.

    B2011: Take effect 2012

    1.  IRB issue CP 205 - tax installment (if taxpayer fails to submit tax return)
    2. CP 205 -  deemed to be the revised estimate
    3. CP 205 - made on 9th month
    4. Taxpayer furnish revised on 6th or 9th month of that basis period
    5. Taxpayers are given 6 month to rectify errors - corrections are allowed
    6. Fails to revised:  10% within 60 days from the filing due date and 15.5% for 60 days.






     

    Computerization VS Human

    Do we really need computerization? Well, human being is just the end users that need applicability and availability moving forward. The need for technology is that, human must be in place  and infront of technology rather technology itself. Human must be at the stage of "humacomization" than computerization.

    To that, we must be really on top of the top in the sense of computer and technology.