MIA

Hello to my personal space again

Couldn't believe myself that I've actually stop blabbering in this space for almost half a year. This place, I absolutely miss.

In these 6 months, a lot has actually happened. A LOT!

There were ups and downs but I believe there's more ups than downs. Maybe cause I'm happy and satisfied in my current life and all is well.

I think I'll just summarize up part of my happenings in the first past 3 months within this short post. I'll try to make it as short and summarize as I possibly can la ha. Cause when I start talk type, I can't stop. Heh (I'm a quite long-winded person)

The last updated post about me is working in a bakery and will be sitting in the June ACCA examinations if I'm not wrong. I'll basically pick up my happenings from June then.

June.

- Sit exam on the 6th, Monday but I, myself know I did not do well in that examination cause I did not manage my time well so were not able to finish. A sad sad day.

- The boyfriend told me there's a Ban Hin Bee (BHB) and Kitchen Tech Warehouse Sale at Island Plaza from 10th to 12th June. He knows me well and yes, he got it right. I go all excited about it and finally on the very first day, 10th in the morning, we went to the sale. Actually that's the only time I'm free la out of the 3 days cause we will be away (more on that at the next point). Conclusion, I got my very first BABY (A Kitchen Aid Mixer) while my another Babe signed the bills. Hah (Thanks Love) 

- Just about a week ago before it happen, my uncle (PekPek) ask if anyone is interested to go camping at Cameron Highlands, of course in that very minute I saw the message, I checked my calendar and gave a resounding YES! I'm that spontaneous if I'm sure I'm free. (So, don't forget to jio me to any vacay when you're planning yea TQ)

Then camping it is. Spontaneous camping trip which I enjoyed from 10th to 12th. (Sorry I did not take any pictures during the whole camping trip cause I would really love to enjoy the nature without any social medias distracting me)

- Had a small dinner on Father's Day with the family obviously but forgotten where did we go already, ooppssiee

- Plus, the relatives made another big family gathering to celebrate Father's Day for the eldest Father (grandpa) of us all at Holiday Inn Resort. We had the buffet dinner on the 24th. If I'm not wrong, we went for the buy 2 free 1 promo buffet. 

July.

- From the 6th to 7th (during Raya holidays), had a short getaway with the relatives to Gopeng, Adeline's Villa. (Two days one night stay) Definitely, another best vacay since I've had in ages with the relatives. Actually all vacations with the relatives, I'll be overjoyed. Cause I love love love family gatherings, moreover, family vacations. (Top of the world leh) Again, no pictures taken by me cause enjoying another escapes to the nature. 

- Finally first time stepping into the Audit/Accounting working industry. Started working as an Audit Associate in a small audit firm (KS Lau & Co) on the 11th. Expose to how an audit firm really operates and what I felt about auditing. It's a good feeling though. Luckily I liked it cause that would be part of my life soon now. 

- Sister is back from Singapore for 2 weeks which we enjoyed her company again. 

- Expecting bad news on the 18th. Got my P7 results and failed but there's improvement from the previous results so yeah, I'm quite satisfied I overcome some of my weaknesses. Of course still sad though. Determination set in not to give up as "Failure is the best way to learn." It got me thinking of a new and better plan/strategy to achieve my target. So it's definitely not a big failure but I'll treat it as a learning experience. A chance for me to taste the feeling of failure and to manage it well. (In future, when I faced more failures, I'll be able to adapt and manage it well so yeah, good training)

- Still motivated and determined so faster registered for the next exam in September. 

August. 

- Held grandpa's birthday dinner on the 6th at New Midlands Court Restaurant. They gave us a 5-tables room furnished with karaoke set. Chose this restaurant cause of their karaoke room cause grandpa love singing so yeah, all of us get to sing all we want when we feast.

- My nephew, baby Daryl born on the 15th. The first ever 1-day old baby that I've ever seen which is so good-looking and adorable. (Usually when I see most new born babies, they only started to look adorable after a few weeks old) Anyways, welcome to the family, Sha Daryl. <3 div="">

- My chinese birthday falls in this month. Only the boyfriend remembers actually cause I, myself forgotten all about it also. He personally make me a Red Egg (traditional way of celebrating birthday). Thanks for being such a thoughtful boyfriend to me.

-  On 26th, colleagues made a farewell apartment stay for the interns at Mansion One. It's from a friend so the apartment is FOC. I'm actually grounded from going out so I did not stayed over, just drop by a few hours. We feasted, chit-chat, snapped pictures and finally played a game called "Police, Nurse, Killer & Citizens" A game where we can really bond and social among one another and I must say it's the perfect game for gatherings (A game I really enjoyed). That few hours were enough, enough to make me relieve the stress I'm having because exam is around the corner.

- END -

I'll end my post here for now. I'll be sure to update my happenings for the other past 3 months here as soon as I find my free time facing the screen again besides facing it every day at work.

Quite tiring for my eyes to face the bright screen even when I'm back home after looking at it all hours in the office.

Catch'em all soon yea.

Laters.

Searching for a Path

I couldn't say I did not regret taking accounting course as my career path. It happened really fast from what I remembered though, I mean how I came to choose accounting. 

I had few choices in my mind at that time. 

I remembered culinary arts was in my list cause obviously if you know me, you'd know I love baking but apparently, not in cooking so yeah, that's why I did not take up culinary arts.

Interior design was also one of my choices, then I realized my creativity skills are really low and even though I do know how to draw quite well but it's all mostly base on referring/copying the work of others which I feel in a designing field, one must not copy one's work. It's called plagiarism. 

To be honest, I love baking and designing is because it involves beautiful decorations. Colors.. designs..

and then I thought if I know how to draw and at the same time love it, what job scope would require drawing skills besides interior design. 

Someone gave me the idea of civil engineering (I'm not sure who gave me that idea already) 

I actually did some research on the courses and colleges to go to and obviously asked around especially my parents. 

They did described to me how my future would be like if I study towards civil engineering. Obviously, I'll be a civil engineer which means something closer to being an architect may be? 

They did also said that this type of job would not be so easily attained cause the market is not big enough in our home country. (I remembered they said something like that)

My imaginary minds fly to the future that I look at myself wearing the construction helmet. Haha

and of course, I did not like it. So the simple idea of civil engineering was turned down by me.

So I was left empty and out of ideas of what I wanted to do back then. 

It was just after I finished taking my SPM at the age of 17. When the result of my SPM was out, I got 8 A's out of 10. I was in Science stream then and I also took an additional subject which is Accounting. It's an advise from the sister so I would have variety of choices to choose from cause I could know what I like.

Eventually, I realized I'm quite good in calculations cause my Mathematics, Additional Mathematics and Accounting (all related to calculations) got all A+'s. 

and by fate or what I'm not sure, dad was leaving his company to pursue in other company, so a lady friend of his known as Selena which is also a financial controller from the company wanted to treat dad for a farewell lunch so that is when Selena introduces me to the route of an accounting. 

Selena told me if I walked down the accounting path, I may go for CAT or Diploma in Sunway or TAR College or any colleges offering an accounting course. To further my studies, I'll then go towards ACCA to take up the professional level qualifications and she said that's it. ACCA is one of the highest ranking in an accounting field. I may not need to continue taking Degree and it's okay. There would be a lot of vacancies because accountants in quite needed in the market. Plus, she did said many companies are now searching for ACCA candidates rather than Degree grads for accountants. Before ending our conversations, she did advised me to go forward for auditor rather than just accountants in the future. 

After she finalizes the route to me, honestly, I did not think or imagine a lot cause the path she described to me were all quite clear and obvious. For that, I'm thankful to her. I forgotten all about imagining the work life of an accountant or auditor.

Since I thought my accounting was really good and I get an A+ in SPM, why not? 

I started searching for colleges at that time without much thinking. Coincidentally, my family and I were at KL for sister's orientation too so we took the chances to ask for accounting courses in Sunway University College in KL and the surroundings. Back to Penang, I did went to a few colleges that offers good accounting courses. At that time, I went to PTPL College and TAR College and to realizes I would get 75% scholarships from TARC since I got 8 A's in SPM. 

I remembered I did not do much of any thinking and what I was doing was comparing which better colleges and surroundings to have for my college days. Obviously the one with scholarships though. So, the decision was made just like that. (I'm pretty sure that's how I ended up in this course)

To be honest, dad said one thing to me that to think back now, that's the reason I'm all okay and decides to take up accounting finally. 

He said something like that, "When you finally reaches to the top to be an auditor for a big company, usually there's only one highest auditor in a company, your work everyday is just 'chop and sign' that's all and your salary would be in 5 digits for only just a month!"

How tempting and attractive right? What I did not realized is the journey I had to go through to achieve and reaches that stage. 

At that time, I did not take the initiative to ask around more about the life of an auditor and the journey it takes to reach to the top. Now at this current situation, I now know that even being the highest level auditor with 5 digits salary, there would be a certain high level of stress that an auditor have to go through. 

Fortunately or not, I still haven't had the chance to experience whether I could handle the stress life of an auditor. So I'm now here not regretting it yet. 

Currently I'm still sitting for my ACCA last optional two papers. I failed once and did not plan to fail it again, NO I cannot!

I do think that I'm actually wasting time not gaining any work experience by full time studying on my own now. 

But I did do a bit of job searching for short term employment about 3 months may be? cause I did send resume to Deloitte (one of the Big 4's) and to what I was told, they put me on hold until I passed from all my ACCA papers (I estimated by July 2016) then most probably they would hire me. 

At first, I planned to work full time but short term while studying, so I would have to find a simpler job with not much stress. (Of course provided with something to learn, something to earn and something to gain experience on) I ought for any administrative work in any company but apparently, no company wanted short term. They said,"Just about to train/teach you everything, by then you're about to leave again and they would have to retrain new people again."

So, I was turned down quite a number of times and finally think of a contingency plan. Hehe

The contingency plan was actually suggested by my mom. I told her the problem of not being employed short term and she said, "Don't worry, do anything you want or you like, go out, gain life experience and expand your views. The money/salary doesn't matter. It's better to do something out there than to just rot at home. It doesn't need to be related to your studies now. Never stop learning......"

When she starts the life speech, it's not gonna end any sooner. It's really full of inspiring stories and facts to learn that I would really love to pass on to my children in the future. I don't think I'll be able to dedicate life experiences and stories like how my wonderful mom projected hers to us. Hope she's gonna pass it to them on her own too. 

Okay back to my contingency plan. Heh

When she said all those, I highlighted these words in my mind,'do anything you like'

and yes, what I currently love doing is BAKING which I think I will probably enjoyed and learn something from the working process. It's not gonna be my permanent career of course. Anyways, I've always express my love towards baking so might as well experience it out there how the real baking industry works right. Maybe I would grow to dislike it after these short 3 months of working? Heh who knows hmm..

I sound so confident that I would get the job I wanted right.

Yupp, you're right. I found the right work at the right place and right timing in just three days time after I decided to find for something I like to do for my short term work. When there's a will, there's a way right?!

Actually it's pretty simple la, I just type Penang Cakes in Facebook (sometimes FB is really useful) and all the pages of cake shops pops out so I literally message about 20++ shops (there's a lot more actually but I wait for the first 20 to reply and see how first lo)

Obviously, there are a few replies and finally, I found quite a good deal and the best working hours la weyyhh. Hah 

Why is it the IDEAL one ?

Shervone Cakes at Crystal Point (Very near to babe's office so he could find me for lunch or buy me lunch when I'm busy?)

Monday to Saturday, 11am - 3pm (4 hours of work only so syok plus I even have time for my studies than I originally plan. The time also does not clash any busy hours so I don't need to stuck in the jam to and fro to work)

Service Crew, Baking Cakes, Decorate Cakes (The ideal job scope I wanted. How to find work like that for a person who has no baking qualifications besides homebaked experience only)

RM500 per month (I guess it's about RM5 per hour. Fair enough since my purpose is to learn, not earn. By the way, in these one week time, I already overtime for extra few hours le, so yeah for some additional $$)

**Head over to my DAYRE ("dayre.me/vickykhoo") for my working environment visuals if you're keen to know or perhaps my SNAPCHAT (@vkykhoo) for some baking processes updates. Heh**

For now, this is my current situation. Working short term as a baking crew while studying for my last paper on this coming June 2016. 

Tbh, I'm not really good in multi-tasking but I hope I could continue to stay focus in both studies and working. 

Signing off soon la. This might be the first fully longest worded post in a very long time. Hah

If you did read until this very end, applause to you and love you la since you spend your time knowing and interested about my boring life.

I don't think this will be the end of my long worded post, maybe more to come. I'll tell you all why if I have the mood to explain why I finally prefer to spam my blog with my long winded words (stories) rather than just visuals (pictures)  

Cheers ~

Loves,

13 to 18 Days to Kill

With just 13 days left to my first examination
and 18 days left to my freedom. (the freedom countdown will always be there)
*typicalgirl*

It's so near already
Not getting myself any ready for it yet
Does we ever get ready for any exams anyway? My case, I don't think so!
Still am so nervous about it.
but who doesn't?

Anyway, this semester in December 2014

I'll be taking ACCA examinations
(you'll know if you're a consistent reader of mine)
teehee~

sitting for these two papers.

F9 Financial Management - 5th December

P2 Corporate Reporting (INT) - 9th December

Hope I'm fully prepared when that day come
Everyone is like saying you have to Study Smart, not Study Hard
You tell me, What's the smart way? The hard way is way easier but not that effective.
It's like so hard to find a smarter way of studying these course.
So,

I'll try to DO & GIVE my very BEST!!

On another side note,

1st

Le sister is back from KL

*screams*

hope this is not a distraction please.

2nd

Pimples everywhere on my forehead

arggghhh, hate the stress that is clinging on me!

using 'Miyome' product which is recommended by a friend, Nicole(a blogger too)

for a change and see it works or not

(only for the serious acne problem for my forehead)

While other parts of my face, I'm still using the usual facial product

which is from The Masque

been using it for quite some time now.
So far so good
that is recommended by my very best friend, Yan Yin

3rd

found something on eBay the other day

was so happy I've finally got it

will reveal to you when I get a hold of it

Can't wait to use it.

4th

Got an idea of what to buy for babe

on Christmas day already

Hope I find a suitable one soon

Love Christmas celebrations so much
Opening presents & the get-to-gather
Too bad, Santa Claus doesn't come to East Asia!
*secretly believes in Santa*

(You'll know if you'd read 'About Me' in my blog)

5th

My day just got better and better

thought I could write type 6th, 7th, 8th or more...

Unfortunately, few minutes ago

Glasses just broke on me!

it literally means I'm gonna be half blind

couldn't blog any longer

my eyes are like really close to the laptop now

gonna go buy a new one later

Hope it could get done soon like very soonnnnn!

End my post here then

Wish me Smart & Luck for coming Exams

May the Odds Forever be in my Favor!

Bento in Car

Hiie,

Having such a long revision class in this past weekend, 15th & 16th

From 9am to 5pm

My brain was like going to explode already.

Especially when my lecturer, Spencer was teaching so fast (in revision class will be faster one)

Luckily, I could absorbed what he teaches cause I made preparation.

So I wouldn't be confused when he is teaching as I know his speed is superb.

He gave us 3 breaks in between.

15 minutes break given around 10.30am

1 hour lunch break given at 1pm

15 minutes break around 3.30pm

(at least he gave us some breaks for my mind to breat)

On Saturday, boyfie came and find me for lunch.

We went to a coffee shop nearby college, it's actually just 10 minutes walking distance

but I wore the wrong shoe that day, so I called him to bring another helmet along

So we could ride there with his bike. 

Boyfie had badminton at 10am-12pm

He came here right after his exercise and waited for me like 15 minutes outside college.

After lunch, he went back of course to have a rest.

While I had to stress my brain with more information incoming.

The next day, Sunday

Yesh, I have that long revision class again from 9am to 5pm

Same break time given.

However, this time round my lunch time is special although it's very simple

The boyfriend told me that we're going to have Subway for lunch today.

It's also 10 minutes walking distance from my college.

Since most of the shops closes on Sundays.

Lecturer released us 10 minutes earlier that day

so I was rushing down to meet boyfie as my class was on the 10th floor.

 But he haven't reached yet

I went to move my car to a proper car park space with shades too.

I waited him for around 15 minutes in the car then he came.

I wore a proper shoe to get ready to walk to Subway already

when boyfie said we're having lunch in the car.

then I knew what he meant cause this was the second time we did this

the last time we did this was also when I'm having long revision class.

Okay, finally stop the talking typing already

Pictures goes...

He brought us Bento (Lunch in a Box)!

So, it means we're gonna have our Bento in the car.

Love these kinda moments with him

How Simple yet Sweet!

Hi Baby.

A bento which he cook all by himself.

although it's simple but it's so deliciously yummm.

Grab this picture in Facebook from her sister.

Boyfie's sister snap him when he's cooking for me before meeting me for lunch.

That's why he was a bit late but just for 5 minutes. No big deal

Thanks babe.

Wintermelon Soup & White Rice 

Two Fried Eggs & Fried Potatoes.

He said he forgotten all about soy sauce for the eggs.

It's still so delicious laa.

I missed it already.

Love it so much

maybe cause it's a sweet effort from him

or cause the food he personally cook all by himself

or cause it's like "everyone's mum home-cooked food" which I don't get to experience it

or perhaps all this reasons.

This was how we eat in the car.

If dad sees this, he sure nag already. Haha

No worries, we makes sure it's clean and we did not spill anything at all.  

and yes, it's at the back seat of my car.

Finally, a wefie from US!

Thanks again, Baby

can't wait for another round, heh!

then back to the mind-stressing class again

That's all for my weekend!

Should have been a boring one but he filled it with Love.

Anyways,

my Intensive Revision Class for P2 (ACCA)

was at

Sentral College @ Penang Street, Penang

See you next time,

Grumpy me

Hiiee,

Today is all well except me feeling grumpy.

Not anyone's fault. It's just the girl thing.

Having the second day of PMS (for guys, doesn't matter if you don't know)

Stomach will certainly feel uncomfortable when it's the first & second day.

However, I'm considered a very lucky girl who doesn't have backache, nausea and many sorts of ache like some of the girls out there.

The ache I'm feeling is still bearable. So yeah, I'm consider very lucky.

Plus, I'm having a slight flu (my friends called it as my best friend) which I hate the most *referring to the flu btw*

Flu will eventually visits me once in a while no matter what without miss! Like maybe few times a month ?

That's what make me even grumpier than usual. Haha

So when I'm having flu, I either sleeps with the blanket all over me (yeah, all covered, head to toe) or I eat, eat and eat (as if I haven't eaten for days)

Guess what I chose ? To eat! Actually I prefer sleeping but exams are around the corner so no dozing off from the world. Need to face the reality for now.

My breakfast for the day!

A cup of hot Milo by me

Two pieces of hot Cupcakes from boyfie

(He bought 4 of it yesterday to make sure I have breakfast to eat in the morning)

+

A set of P2 notes from Spencer Cheah (my teacher) 

*saw his face on the mindmap? Haha*

After breakfast (now), I blogged. Just to get rid of my blogging addiction nowadays.

Anyway, how's your breakfast? Eaten yet? Hope you enjoy yours as I've enjoyed mine. 

Bon appetit ~

*Excuse me for the bad quality images, it's taken from iPad*

I'm gonna get back to my studies now. 

See you,

IAS 19 Employee Benefits

This is a post of my own detailed and thorough explanation on the standards of the subject I'm taking, P2 Corporate Reporting (ACCA)

*You may skip this if it's irrelevant to you*

IAS 19 Employee Benefits

Types:

(1) Short-Term Benefits - due within 1 year, recognized as expenses in the same year.

- Compensated absences 

    - Accumulating (can be carried forward)

            - Vesting and Non-vesting 

    - Non-accumulating (cannot be carried forward)

- Bonus & Profit Sharing - recognized because it's a present obligation.

(2) Retirement Benefits 

- Defined Contribution Plan

- Defined Benefits Plan

Defined Contribution Plan

• Contribution is fixed
• Payout not guaranteed and depends on performance of plan
• Investment and Actuarial risk lies with employee

The contribution is to be treated as expenses and thus, no discounting is needed.

Defined Benefits Plan 

• Contribution is not fixed
• Payout guaranteed
• Investment and Actuarial risk lies with entity

Projected Unit Credit Method :

(1) Present Value of Obligation

(2) Fair Value of Plan Assets

(3) Net Liability (SOFP)

(4) Net Expense (P/L)

Remeasurement of Gain/Loss to OCI

If the (3) Net Liability is a Net Asset, then perform Asset Ceiling Test

LOWER of (amount recognized) :

- Net asset

- Present value of refund in contribution

The difference(balance) will go to Other Comprehensive Income (OCI).

Termination Benefits

It is recognized only when 

- committed to termination (present obligation), it will be expense immediately

- detailed & formal plan to terminate

- communicated plan

- voluntary redundancy

Ends,

IAS 23 Borrowing Costs

This is a post of my own detailed and thorough explanation on the standards of the subject I'm taking, P2 Corporate Reporting (ACCA)

*You may skip this if it's irrelevant to you*

IAS 23 Borrowing Costs
It is an interest incurred on loan taken to acquire qualifying asset which is asset that will take time to get ready for intended use. For example, property, plant and equipment, investment property and intangible assets during development stages.
Buying a delivery vehicle cannot be capitalized while constructing a building can be capitalized because it needs time to get ready.
Borrowing cost can be capitalized when the interest is directly attributable to construction, production and acquisition. Meanwhile, if it is other interest, it must be write off as expenses.

There are two capitalization rate which are :
Specific Borrowing - It is the specific interest rate less income from temporary investment.
General Borrowing - It is the weighted average rate. Total interest divided by total loan amount.

Commencement of capitalization is the borrowing cost incurred when the construction activities started and the expenses incurred. 
If there is temporary suspension, it cannot be capitalized thus the interest will be written off as expense. 
Cessation of the capitalization is when the asset is physically completed and substantially ready for use.

The reasons for capitalization is even though the asset is purchased, the developer will also include the interest cost to reflect the market cost of  the asset.

Ends,

IAS 20 Government Grant

This is a post of my own detailed and thorough explanation on the standards of the subject I'm taking, P2 Corporate Reporting (ACCA)

*You may skip this if it's irrelevant to you*

IAS 23 Government Grant

It is an assistance from government in the form of a transfer of monetary and non-monetary resources. Non- monetary grant is measured based on the fair value of the asset transferred/received. Meanwhile, government assistance cannot be recognized because it cannot be measured as it is just a technical advise or marketing advise. Government grant can only be recognized when entity comply with the condition and the grant will be received.

There are two types of government grant :
Asset based grant is a grant given to company for the acquisition of asset and it is to be set off from asset when it is received where you,
DR Bank
     CR Property, Plant and Equipment
If there is any deferred/future income,
DR Bank
     CR Government Grant  
the government grant is to be amortized based on its useful life to Profit or Loss as income.

Revenue based grant is a grant given to company for certain types of business and is to be recognized as income when it is received.
DR Bank
     CR Profit or Loss (Income)
Disclosure for other income is to reduce the expenses which it is related.

Grant is repayable when there is change in the accounting estimate.

Ends,

IAS 37 Provisions

This is a post of my own detailed and thorough explanation on the standards of the subject I'm taking, P2 Corporate Reporting (ACCA)

*You may skip this if it's irrelevant to you*

IAS 37 Provisions
Provision is a liability of uncertain timing or amount. Liability is a present obligation as a result of past event or settlement that will result in an outflow.

Contingent liability - outflow
Probable outcome : Recognized provision
Possible outcome : Disclosure by way of note
Remote outcome : No disclosure

Contingent asset - inflow
Probable outcome : Disclosure by way of note
Virtually certain : Recognized as income
Others : No disclosure

There are three recognition that must be met :
Present obligation

• Legal - rules & regulation
• Constructive - past practice & company policy

Outflow

• Probable - more likely than not
• Possible - maybe
• Remote - unlikely

Measurement

• Amount based on best estimate is required to settle obligation 
• Present value of future cash flow
• Expected value by probability estimate

Future Operating Losses

No present obligation so no provision

Onerous Contract

It's a contract where cost of meeting the contract is more than future economic benefit (loss making contract). It is allowed to recognized a provision because there is legal obligation.

The provision amount is the LOWER of :

- cost of meeting contract

- penalty payment 

Provision for Restructuring

It is a sale/termination of a business line, closure of a business location or changes in management structure. It can be recognized when the following conditions are met :

- raised valid expectation

- detailed & formal plan

- approved before year end 

- communicated

The amount to be recognized is the expenditure directly attributable to restructuring. For example, termination costs and compensation costs.

Ends,

IAS 10 Events after Reporting Period

This is a post of my own detailed and thorough explanation on the standards of the subject I'm taking, P2 Corporate Reporting (ACCA)

*You may skip this if it's irrelevant to you*

IAS 10 Events after Reporting Period
Those are the events which occurred after the year end but before the financial statement are authorized for issue.
There are two types which are the adjusting events and non-adjusting events.

Adjusting events
It must be taken into account and the financial statement must be adjusted. These events provide further evidence of condition that existed at year end. For example, customer default and settlement/compensation.

Non-adjusting events
This event cannot be adjusted because it is next year adjustment. It is those events that are indicative of condition that arose after year end. For example, the changes in investment value and fire/floods after year end.

Dividend is declared after the year end so it is a non-adjusting event.

Going concern is an event after reporting period but if a company intends to liquidate or cease its business which means it is no longer a going concern, it is still an adjusting event.

Ends,

IAS 36 Impairment

This is a post of my own detailed and thorough explanation on the standards of the subject I'm taking, P2 Corporate Reporting (ACCA)

*You may skip this if it's irrelevant to you*

IAS 36 Impairment
Impairment of assets happen when carrying amount more than recoverable amount (CA>RA). Impairment review will be carry out once there is indication of information. There are internal information like wear and tear or damaged while external information are like technology change, fall in market price, or obsolete. There are two assets that need to carry out yearly impairment review which are intangible assets with indefinite useful life and goodwill.

Impairment loss = Carrying amount > Recoverable amount

Carrying amount is the net book value of the asset.
Recoverable amount is the higher of fair value less cost to sell or value in use. Value in use is the present value of the future cash flow when the asset is used continuously.

Impairment loss will be recognize as expenses. If there are assets previously revalued, it must be set off from surplus.

Reversal of Impairment
This happens only when the value of asset increases. Impairment loss previously recognized no longer exist. The new carrying amount must not exceed the carrying amount of asset as if no impairment has previously taken place.

Cash Generating Unit (CGU)
It is the smallest identifiable group of assets that generates cash flows. Impairment loss will be firstly allocated to the assets specifically impaired, goodwill and then it will be pro-rate over the remaining assets. It must not be allocated to the monetary assets like cash, bank, loan and accounts receivables or payables.

Ends,

Balancing

The study life. The entertainment life. The passionate life.

It's so frustrating when you could not balance it all.

If there is too much of your time spending on studying, you wouldn't have the time to enjoy your entertainment and passionate life and vice-versa.

As for my case, even though the examination is really near, I keep getting attracted to my entertainment life. (especially when my sister is back from KL)

I've actually wasted plenty of time. I wouldn't say it's procrastinating cause that's still my life I'm enjoying. Not to say I hate studying, I really hope I could enjoy studying but to enjoy studying, you have to love it. To love it, you have to understands it.

My problem now, I do not understand it and I could not find the perfect way of studying it smartly.

As it is to say,

"Study Smart is better than Study Hard"

I know that but I just do not know how to study smartly. I still don't find any clue to studying it wisely. So for now what I can do is to study hard, at least I'm studying.

I've put too much time on entertainment and my passion. So now it's time for me to put it more on studying.

40 DAYS LEFT !

Loves,

IAS 38 Intangible Assets

This is a post of my own detailed and thorough explanation on the standards of the subject I'm taking, P2 Corporate Reporting (ACCA)

*You may skip this if it's irrelevant to you*

IAS 38 Intangible Assets
Intangible assets is a non-monetary assets without a physical substance.
There are 4 recognition criteria.

• Asset must be able to be separately identifiable.
• Asset have the power to obtain/control the use of the intangible asset.
• All assets must be able to generate future economic benefits.
• The costs can be reliably measured.

Research cost

It is to be written off as expenses because it cannot generate future economic benefits.

Development cost

The intangible asset can only be capitalized if the five conditions are met. Besides, the cost capitalized cannot be more than the future economic benefit. Once the cost is written off, it cannot be recapitalized at a later date. 

Revaluation

Intangible asset can be revalued but only in an active market. It means there must be many willing buyer and seller for the intangible asset. 

Accounting Treatment
1. Intangible asset is purchased

• Criteria met
• - recognized cost initially 
• - subsequently at the end of the year, if the intangible assets has a finite useful life then it will be amortized over the useful life. Meanwhile, if the asset has an indefinite useful life, no amortization is required but yearly impairment review is needed when the carrying amount declines. 
• Criteria not met
• - written off as expenses

2. Intangible asset acquired as part of business combination

• The asset which can be separately identified will be recognized at fair value on date of acquisition.
• The one cannot be separately identifiable will be recognized as part of goodwill.

Ends,

IAS 17 Leases

This is a post of my own detailed and thorough explanation on the standards of the subject I'm taking, P2 Corporate Reporting (ACCA)

*You may skip this if it's irrelevant to you*

IAS 17 Leases

When classifying a lease arrangement, an entity will have to consider issues of substance over form. A finance lease is a lease that transfer substantially all the risks and rewards of an asset to the lessee. Meanwhile an operating lease is a lease other than a finance lease.

The substance over form

• Ownership transferred at the end of the lease term.
• Bargain purchase option buy at lower than market price.
• The lease term is for major part of assets economic life.
• Present value of minimum lease payment equal to assets fair value. (PV of MLP = FV)
• The lease asset is specialized in nature.

Finance Lease

Lessee point of view (Company)

• Lease interest (expenses) using the actuarial method.
• Financial liability lease obligation (liability) will be divided into current and non-current.
• Depreciation.

Lessor point of view (Bank)

• Lease interest. (income)
• Investment in financial liability (asset) will be divided into current and non-current.

Operating Lease

Lessee

• Lease rental (expenses)

Lessor

• Lease rental (income)
• Property, plant and equipment & Depreciation

Sales & Leaseback

This is when a company sell the asset to the bank and then leaseback from the bank.

If it's a finance lease, there will be no disposal thus all the gain on disposal will be deferred and amortized over the lease term.

Current Issues

• Operating lease underestimates the assets and liabilities of the lessee.
• Similar transaction accounted for differently.

Proposal

Lessee

DR Rights of use assets 

     CR Liability for lease rental

Lessor

1. Derecognition Approach (Risk & reward transferred)
2. Performance Obligation Approach (Risk & reward not transferred)

Ends,

IAS 40 Investment Property

This is a post of my own detailed and thorough explanation on the standards of the subject I'm taking, P2 Corporate Reporting (ACCA)

*You may skip this if it's irrelevant to you*

IAS 40 Investment Property

All land and building that is held for rental or for capital appreciation to be classified as an investment property. For example, property with undetermined future use, operating lease, capital appreciation, and building constructed to be used as investment property.

The outside scope of IAS 40 are property rented out for employee (IAS 16), owner occupied property (IAS 16), property under finance lease (IAS 17), property held for sale in the ordinary course of business (IAS 2) and property that is constructed on behalf of third party (IAS 11).

When parent rented out to the subsidiary of the group, it is to be treated as an investment property (IAS 40) in their own financial statement. However, it is treated as Property, Plant and Equipment (IAS 16) in the consolidated financial statement. 

Investment property can be carried at cost model and fair value model. Cost model is to carry at net book value while fair value model is the changes in fair value to Statement of Profit or Loss (FVTPL). There will not be depreciation for the fair value model.

For the reclassification of investment property, there are several possibilities. 

When IAS 40 to IAS 16, the fair value of the property at the date of reclassification would be considered as the cost of the PPE. From that date, it will start to depreciate.

FV → CA

When IAS 16 to IAS 40, the property will be revalued to its fair value at the date of reclassification and from there on used fair value. The surplus will go to reserve and transfer to retained earnings while deficit will go to expenses. 

CA → FV

When IAS 2 to IAS 40, the property will be revalued but the surplus would be recognized as income in the Statement of Profit or Loss.

CA → FV (Surplus - Income)

Ends,

IAS 16 PPE

This is a post of my own detailed and thorough explanation on the standards of the subject I'm taking, P2 Corporate Reporting (ACCA)

*You may skip this if it's irrelevant to you*

IAS 16 Property, Plant and Equipment

There are three recognition criteria. It must be a tangible assets that are used in business for more than one year. It could generate future economic benefits and is not for resale or trading purposes. The costs must also be measured reliably.

Costs can be recognized when the PPE is purchased and all the expenses which is necessary to bring the asset into working condition. For example, installation costs, pre-production testing cost, import duties and etc. When PPE is self-constructed, all construction costs can also be recognized but exclude abnormal loss.

Subsequent costs is an expenses incurred on PPE after the initial recognition. For example, costs for renovation, modification, repair, repainting and etc. It can be capitalized when it can generate extra future economic benefit if not, it will be written off as expenses.

All PPE must be carry at net book value. It is cost less accumulated depreciation. However, it can also be carry at fair value.

When PPE is revalued, it must be revalued regularly and the entire class of the assets must be revalued too.

If it's a revaluation surplus, it will go to Reserve in the Other Comprehensive Income. However, it will go to Income to reverse a previous deficit provided that 'the new carrying amount must not exceed the carrying amount of the asset if no revaluation has previously taken place.' The excess will then go to reserve.

If it's a revaluation deficit, it will go to expenses in Statement of Profit or Loss. However, if previously there is a surplus, it will set off the previous surplus. The excess will then go to expenses.

Surplus

DR Land

     CR Revaluation Reserve

(There's a deficit previously)

DR Land

     CR Statement of Profit or Loss(Income)

     CR Revaluation Reserve

Deficit

DR Statement of Profit or Loss

     CR Land

(There's a surplus previously)

DR Revaluation Reserve

DR Statement of Profit or Loss

     CR Land

Ends,