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)                             

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.