NOV 2022 [ FA CT ]

Income Tax Act 1967 is one of the statutory regulations of financial accounting and reporting for Malaysian businesses. Select from the following a TRUE statement related to the Act:

• Companies Act 2016 do not require companies to prepare income tax returns based on the financial statements

• It is mainly concerned with ascertaining of chargeable income and tax receivable

• Taxation is a business expense that needs to be reflected in the statement of financial position

• Requires business to keep sufficient records to enable the income or loss from the business are readily ascertained by the Director General of Inland Revenue

From the following situations, identify the INCORRECT statement relating to the MIA and MICPA before the establishment of MASB:

• Both are private sector accountancy bodies that could only regulate the practices of its members

• They regularly review financial statement prepared and audited by their members

• Both bodies have the statutory power to enforce compliance

• They take action against members who found guilty of non-compliance

The following represent functions of MASB:

i. To issue new accounting standards

ii. To issue statements of principles for financial reporting

iii. To regulate the accountancy profession in Malaysia

iv. To make such changes to the form and content of proposed accounting standards

• i, ii, iii, iv

• i, iii, iv

• ii, iii, iv

• i, ii, iv

Identify the best situation indicating the shift of the Malaysian accounting standard- setting process from the private sector accountancy bodies to the public sector statutory body.

• When MASB being admitted as a member of the IASB

• When MASB issued technical pronouncements other than MASB standards

• When the Financial Reporting Act 1997 was publishec

• When the Malaysian Private Entities Reporting Standards (MPERS) Framework was endorsed as a standard for application by private entities

From the following, find the INCORRECT statement about the reporting requirements
for a private company:

• to submit its audited financial statements to the DG of Inland Revenue

• to comply with the Companies Act

• To comply with the approved accounting standards

• To comply with the requirements of boththe SC and the Bursa Malaysia

Accountants and auditors must overcome ethical dilemmas and allowing for the right choice and standards that although it may not benefit the company yet will benefit the public who relies on the accountant/auditor's reporting. The following statements that depict the roles of accountant to the society are:

• i, ii, iii, iv

• i, iii, iv, v

• ii, iii, iv, v

• i, ii, iv, v

The following statements describe:

• - has statutory power to enforce compliance

• - regulating all matters relating to securities and futures contracts;

• - encourage and promote the development of capital market

• Bank Negara Malaysia

• SC

• AOB

• Bursa Malaysia

Malaysian Private Entities Reporting Standard (MPERS) is a self-contained Standard that comes in 35 sections covering all the relevant areas for financial reporting by private entities. One of the following statements DO NOT describes MPERS:

• The previous Private Entities Reporting Standard (PERS) Framework is withdrawn effective 1 January 2014.

• Private entities may adopt the Malaysian Financial Reporting Standards (MFRS) Framework used by public entities.

• Privat eentities have a choice to make transition to the new MPERS Framework

• MPERS is based on the IASB’s International Financial Reporting Standard for Small,
  and Medium-sized Entities (SMEs).

Below are the financial reporting requirements that need to be comply by a form of business organization in Malaysia:

Find the right form of business that are subject to the above reporting requirements:

• Sole proprietorship business

• Partnership business

• Private company

• Public listed company

Find the best statement related to MASB:

• MASB Standards were either identical or similar to the IASC

• MASB Standards were developed with reference to the work of the MAS

• MASB Standards were effective for application as at January 1997

• MASB Standard issue new accounting standard as approved accounting standards (AAS)