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,

Our kind of Supper

I used to hate coffees actually

Usually coffee which contains caffeine makes people more alert that's why it could keep people awake. 

My side of story, coffee does not make me feel alert or awake but I'll have diarrhea instead. Besides, I'll still sleep very soundly even though I took coffee before my bedtime. (So I actually hated Starbucks in the beginning, can you believe that?)

As time passes, my mum loves to go for cafes after our family dinner and that it is equivalent to having supper. (it means extra FATS)

So we usually order drinks only. However, mum would feel it's bad that we did not order any food since we will be hanging around in the cafe for hours. Thus, she will make us order a slice of cake or may be two.

I'll order fruit juices at first because that's the only thing I know how to drink and it's more reasonable. Mum and sister usually have Lattes so I often sip a mouth or two from theirs.

I actually grow to love it and the best thing is I'm not having diarrhea from it anymore but still, I can sleep very soundly. (I guess it's not a bad thing)

The more I develop my skills of drinking coffee like Latte, I started to try more of other types of coffee. Conclusion, I still prefer Lattes and found a better one which is Mocha (i'm lovin' it).

So, thanks to mum who always bring us to cafes. Therefore, this is like our family late night hang-outs or our kind of supper.

Even though I'm not a night person (I loves to sleep), I really enjoyed going to cafe at night. It's one of my places to relax now. 

There are pros and cons to this,

The pros to it is we have our family chats and family bonding time there. 

The cons to it are having late night sleep and consume a large amount of coffee. 

Here's some pictures of us hanging out in the cafe, Sweet Time in Sugar Honey, Campbell Street.

Hiii there !

This is the sister

Me and the boyfriend.

The married couple. Mum & Dad.

The couple in glasses.

Momma who loves to hang out in cafe.

Daddy, the grumpy ones who always chase us back home.

Then we actually made him bring his work here to do so he won't chase us back that early.

If camera is with me, I wouldn't stop capturing.

The boyfriend who says you have to do something natural when capturing pictures and not just a simple look post picture. hahaha

So here he is when I made him do the simple look post pictures. The unwilling post.

He insisted not to take anymore, so I say it's okay. Your turn to take mine. teehee ~

and finally a willing picture from him. How adorable!

Lastly, here's a virtual cake for you that have bits of bites from us. (Tiramisu Crepe Cake)

Loves,

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,

Blueberry Cheese Cake

Hiiiee again,

As you know my earlier post about The Surprise, I baked a cake for my mum. 

She loves to eat baked blueberry cheese cake so I've decided to bake one for her.

I found this recipe in YouTube but I've customized some of the ingredients to my own desire.

Baked Blueberry Cheese Cake 

Base

• 200 g digestive biscuit
• 20 g melted butter

Filling

• 250 g cream cheese
• 56 g sugar
• 70 g egg
• 28 g condensed milk 
• 140 g heavy cream
• 28 g cake flour
• 1 tsp lemon juice

Topping

• Blueberry jam

Preheat oven to 160°C.

Put the biscuits in the blender and blend until it is very fine.

Melt the butter. Mix it into the fine biscuit crumbs.

Place the base mixture in a 9 inch round pan and press gently with a spoon until even. Bake for 10 minutes or until light golden.

Mix and combine thoroughly all the ingredients one at a time until you see smooth and light batter. 

The fine crumbs. The eggs. The finished filling. The baked base.

Pour the filling into the base mixture.Tap lightly to remove any air bubbles.

Cover the base of the cake with aluminium foil.

Bake for 45 minutes. Let it rest in the oven for half an hour with the door closed.

Baked Cake.

The side view of the cake. 

(This time I put too much biscuits for the base) Have to improvise again in future.

Spread the blueberry jam on the cheese cake with a spatula until evenly spread.

Refrigerate it until cold then it may be served.

and Now it's READY.

Tasting Section

The filling part is very tender and is full of flavors as the cheese cake is well-baked. 

However, the base are quite hard when the cake is being sliced though you can still hear the crispiness of the base when you eat it.

As for the filling, i can say it has the balance of sweetness and sourness. You can also taste the small blueberries in it. 

Flaws

- Base are too thick.

- Base are quite hard.

- 9 inch pan are too large for this amount of recipes. (Have to add the ratio of the cheese cake or either use a smaller pan)

- Filling has nothing special. (Will do my own jam next time)

This is not the perfect recipe yet, I will still be improvising it. Will get back to you soon when I've finally find a perfect one. 

Till then.

Loves,

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,

The Surprise

Happy Diwali!

Mum's birthday is also on that day which she is not really happy with it. Reason, she have to work cause it's a public holiday. So she actually plans to go to work already.

However, my sister plans to come back on a day before though she have already bought a plane ticket on Friday, which is just a few days after.

And that doesn't stop her from coming back here to celebrate with momma. She's very eager also cause she doesn't have classes and work in KL. So she sees an opportunity in that and grab it.

She asked for my opinion, I said "You couldn't change the plane ticket, it's not a bus ticket. If you really wanted to do something about that like buy a new plane ticket or what, you have to go through daddy."

She actually went to ask the relatives in the family whatsapp group whether anyone's coming back Penang that she needs a ride home. Fortunately, she's very lucky, my cousin brother is coming back on Tuesday which is the day before and he agrees to give her a ride.-

Then she asked daddy and to my surprise, daddy agrees to buy her another plane ticket to return to KL on Thursday so that she could go to work on Friday and take another plane back here on the same day itself. Confusing isn't it? If you get me, you'll think she's kinda out of her mind but for me, it's for a good cause, momma's birthday leh. A reunion dinner is a must must!!

Okay, let me make things easier for you to understand.

Tuesday - She's back in Penang with my cousin brother by 9pm.

Wednesday - Momma's birthday (stay tune for the things we did)

Thursday - She's going back to KL, flight at 5pm.

Friday - She goes to work in the morning and get back to Penang, flight at 3pm.

Do you see how desperate she was?? Hahaha

and mum doesn't know anything about this whole thing. So we take this opportunity to give her a surprise.

Tuesday night, when we're having dinner at All Season Place, I told sister to drive another car here to meet us and give mum her surprise.

You should have look at momma's face. It's priceless! She's shocked, surprised, happy, speechless and that emotion you get when you know your birthday would be great cause family is unite again. (Not that we separated very long but we miss sister's existence here)

and so, mum which is also the birthday lady and the working lady boss decided that she's going to skip work on her birthday just cause our family is unite again and she wanted to have a day together.

*On Momma's Big Day*

Four of us which is dad, mum, sister and I wake up early and we went for a jog in the Botanical Garden. (It's like a routine every time sister is back especially on weekends)

We went to temple after that to give our prayers and get blessings.

Then, we call mum to suggest where to head for breakfast. She suggested 'Koay Teow Th'ng' at Penang Pitt Street so we went there for breakfast.

We're all so full after that meal and I meant 'we' is referring to dad, sister and I. Mum(the birthday girl) on the other side is not full and she suggested to went to a cafe for another shot.

She's the Big Lady that day, so we agrees to anything she wants!

We went to Budans Brew Coffeebar at Argus Lane. Ordered a breakfast set and a dessert.

After two hours of relaxation in that cafe, dad said he wanted to go clinic to consult doctor for antibiotics for his swollen eye. So we waited in the car when he's consulting, three of us are so exhausted, we all fell asleep in the car. (of course, with the windows slightly tune down)

and when we were jogging, mum did suggest something she wants for us to fulfill for her. So of course, we agrees to anything she wants! Guess what's that? hahaha

She said,

Can we clean and tidy her 'quite disoriented' room with her? 

cause she said she couldn't manage to clean up all by herself even with only daddy's help. My parent's room are actually quite big because it's two rooms combined and be ONE. She always wanted to make her room tidier but she's a working lady boss so she doesn't always have the time.

So when we get back was around 12pm, it's time for the FOUR of us to get working.

 Mask on. Brooms in. Rubbish out.

We do the cleaning and tidying for about 3 hours and we're all so hungry already, so I called my boyfriend to kindly deliver lunch for us.

The room is big so we did not manage to finish all the cleaning and tidying. So mum say it's okay, we should stop and continue when there's another chance, we're all exhausted.

When the boyfriend reached, we're like bulls. Straight aimed for the FOOD!

Then we sang birthday songs and presented Blueberry Cheese Cake (click it!) I baked a day before to momma. We also have high tea while enjoying the television in the living room together.

Few hours past, we're all ready to head for dinner. Plan to go for a Hainan Restaurant, unfortunately, there's a function happening. So mum decided to go for a Vegetarian Restaurant, The Bock Garden at Kedah Street.

Mum received a 30% discount card with one free scoops of ice cream from Haagen-Daaz for her birthday because she's a member. So, we take away one pine of ice cream instead of having there cause dad is really tired.

Reached home, enjoyed the Ice cream together with a movie "Make A Move" in the living room and that's sums up our day!

We doesn't need to go travelling, expensive places or any exquisite restaurants.

All that matters are we are doing things TOGETHER and we enjoyed the PROCESS!

I love my family, now and always ~ 

Toodles.

Loves,

Typical 47

December 5th and 9th is the day!

ACCA, you're one tough thing I can say.

I'm taking F9 (Financial Management) and P2 (Corporate Reporting) in this round (December 2014).

Even 3 months before the examination, I'm already nervous. So now when I think of the days left, I shivered.

F9 is a fundamental paper so it's not as tough as the professional level paper like P2.

As you know ACCA is an accounting professional qualification, so it should be more of a practical accounting rather than theories. However, P2 requires you to discuss and explain all the accounting standards available. That's really a very intense one.

I'm not going to go so detail and deep in this field, it's sure going to bored you.

Anyway, I gotta 'love what I do' then I'll start enjoying what I'm doing.

Like I say nothing is impossible if you 'put your heart at it'

I'll really give my best shot!

Wish me luck? Nope, I don't think luck can really help me in my exams.

I need a smart brain, yeah! Hahax

Just hope I'll succeed in whatever I'm doing.

HOPE & to always have FAITH

Loves,

The Space

I was scrolling Instagram today and realize I've actually follow quite a number of people who post nice pictures about kitchen. I like to see beautiful designed kitchen, dry or wet ones.

One of my favorite space at home (or anybody's house) is the Kitchen! (Of course you know the reason why because of my previous post) - I enjoy baking!

I love many types of kitchen designs but not all.

The MOST IMPORTANT thing about kitchen for me is to make sure it's CLEAN & TIDY!

If not, no matter how nice your kitchen is designed, it won't be beautiful.

Besides, I really love kitchen when it's SPACIOUS. Although it's not a choice because it's all depends on the size of the house. (so this is optional)

As for me, if my kitchen is clean, tidy and beautifully-designed, I guess you would always find me in the kitchen. Like most of my leisure time, I'll be spending time there. 

It's a comfort to me when I see my kitchen is beautiful. 

So to show you some of the kitchen designs I love, I personally chose and saved some pictures from Google Image. (Source)

There are few themes of kitchen designs I love which are : (pictures descriptions available below)

The Country Style (White or Brownish Based)

- it's giving me a very warm kinda feeling.

- wooden cabinet is always pretty but there are pros and cons to it.

(1)

(2)

(3)

The Pastel / Vintage Style

- cause this is so pretty and I wouldn't get bored looking at it all day long

- it's like living in a fantasy world being a princess by doing something I love (baking is definitely not a chores for me)

- love every single little utensils which are full with colors of pastel (My Goodness)

(1)

(2)

(3)

The Modern Style

- that's only one thing I like about the modern style, ONE thing which is the cleanliness of the whitish-designed kitchen.

(1)

However,

The Modern style kitchen which is blackish type is a NO NO for me because you couldn't really tell when your kitchen is really clean or it's just not obvious that it is dirty. 

(1)

The above is mostly all spacious designed kitchen. 

Then is it the reason why it seems so pretty?

For me, NOPE!

Like I say, the most important thing is to keep your kitchen clean and tidy. If not, a spacious beautifully-designed kitchen will also turned into an ugly ones.

There are also some less spacious kitchen which I feel is pretty.  

The Country Style

The Pastel / Vintage Style

The Modern Style

As I say, I really love clean & TIDY kitchen, that means I will need all my utensils to be properly arranged and kept. However, to make your kitchen prettier, the utensils needs to suit the themes of the kitchen so that it could all blend in. 

It's easier to find utensils which can easily blend in with the country and modern style kitchen.

For the pastel/vintage style, it's a bit challenging. It's not everywhere that you can find a shop which sells pastel color utensils but it's not impossible to find. You just have to "put your heart to it" (really love the meaning to this) The moment you put your heart to it, you can achieve things that you don't even think you can! *Ok, back to the topic*

Examples of some pastel/vintage style utensils :

Maybe some other places are easier to find but in my hometown (Penang), it's a bit hard I guess.

Or if anybody knows where to find all these types of pastel colors utensils, kindly please let me know by dropping comments on these post. *appreciates it*

and And AND Does anybody reading this watches MASTERCHEF ? *out of topic here*

Oh my Goodness, when I saw their pantry and all the utensils they have! Ooohhh Laaa Laaaa!!!

It's like heaven in there for anyone who loves to make food. 

They have like EVERYTHING in there.

Just imagine if you get to use anything in there! Priceless!!!

*Back to the topic*

Before I end this super long post,

I just want to show how's my kitchen look like in my house.

(Still currently staying with my parents) 

Can you describe what style is my house's kitchen?

Actually I'm not sure myself. I think my mum chose the colors cause she used to really loves BLUE!

There are actually things I like and dislike about my house's kitchen,

Like :

- At least it has a theme which is 'BLUE color kitchen' perhaps

- It's quite spacious actually

Dislike :

- It does not have a style (don't even resemble any of the styles I love)

- It has this blackish-smush design for the kitchen table top which is really hard for me to know when it's dirty (that's how I come to dislike blackish design kitchen)

I wonder when can I design my own kitchen, the kitchen I've always dream of!

In 5 years time, 8 years, 10 years or more?

I'll let you know in the future.

Signing off with love,