Deloitte Tax Max The 44 Series

Deloitte Tax Max The 44 Series-Free PDF

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Disclaimer, All materials or explanations not restricted to the following presentation slides collectively. Material have been and are prepared in general terms only The Material is intended as a. general guide and shall not be construed as any advice opinion or recommendation given by. Deloitte and or its personnel collectively Deloitte. The Material should not be construed as being comprehensive and a substitute for reading the. applicable requirements Further it does not cover all topics of the subject matter Accordingly. Deloitte is not in a position to and will not make any representation as to the accuracy. completeness or sufficiency of the Material for your purposes. The application of the content of the Material to specific situations will depend on the particular. situations involved Professional advice should be sought before the application of the Material. to any particular circumstances and the Material shall not in any event substitute for such. professional advice, Some of the illustrative examples contained herein as indicated were extracted from the. applicable accounting standards All rights the terms of use including copyright are owned by. the IFRS Foundation, You will rely on the content of the Material at your own risk Whilst all reasonable care has been. taken in the preparation of the Material all duties and liabilities including without limitation. those arising from negligence or otherwise to all parties including you are specifically. disclaimed, The material should not be reproduced in whole or part or made available without prior written. consent of Deloitte,2018 Deloitte Tax Services Sdn Bhd MFRS 15 16 2.
Unveiling MFRS,MFRS 16 Leases,2018 Deloitte Tax Services Sdn Bhd MFRS 15 16 3. The main changes,Two main changes are,Determination. Lessor of whether a,and contract,Lessee contains or is a. lease One single,Lessee measurement,Lessor accounting largely unchanged. 2018 Deloitte Tax Services Sdn Bhd MFRS 15 16 4,Timeline to transition.
Early adoption may,be permitted,December year ends December year ends. Retrospective application Effective date,with restatement. 31 Dec 2017 1 Jan 2018 1 Jan 2019, Disclosure reasonably estimable information up to effective date. PRACTICAL Permits both lessees and lessors not to reassess whether a contract. EXPEDIENT is or contains a lease at the date of initial application. Entities can elect to apply full retrospective approach or a modified retrospective. approach with no restatement of comparatives,2018 Deloitte Tax Services Sdn Bhd MFRS 15 16 5. How does it impact you,Impact on tax,payments and,deferred tax.
future TIMING OF,financing GREATER PROFIT,FINANCIAL RECOGNITION. TRANSPARENCY,Interest BONUS SCHEMES,cover Are targets based. 2018 Deloitte Tax Services Sdn Bhd MFRS 15 16 6,Identification of a lease. MFRS 16 vs MFRS 117,MFRS 16 retains MFRS 16 changes. Definition of a lease Application of the definition. A contract or part of a contract,that conveys the right to use an.
Concept of control is introduced,asset for a period of time in. exchange for consideration, Identifying a lease may require significant judgment. 2018 Deloitte Tax Services Sdn Bhd MFRS 15 16 7,Definition of a lease. MFRS 16 vs MFRS 117, Whether the customer has the right to control the use of. Is it a lease,an identified asset for a period of time.
Right to control the,Identified asset and use of identified. Right to obtain substantially,all economic benefits from. Right to direct the use,2018 Deloitte Tax Services Sdn Bhd MFRS 15 16 8. Assessing whether a contract is or contains a lease. Is there an identified asset,Does the customer have the right to obtain No. substantially all of the economic benefits from,use of the asset throughout the period of use.
Customer Does the customer the supplier or neither party have Supplier. the right to direct how and for what purpose the,asset is used throughout the period of use. Neither predetermined Concept,of control, Yes Does the customer have the right to operate the. asset throughout the period of use without the, supplier having the right to change those operating. instructions, Did the customer design the asset in a way that No. predetermines how and for what purpose the asset,will be used throughout the period of use.
The contract The contract,contains a does not,2018 Deloitte Tax Services Sdn Bhd. lease contain a lease,MFRS 15 16 9,Single measurement model. All leases with a term greater than 12 months are recognised. on balance sheet,Balance sheet CU,Property plant and equipment 44 521. Lease assets 18 757,Represents the lessee s right to. use the underlying leased asset Other 26 703,Total non current assets 89 981.
Total current assets 38 086,Total assets 128 067,Borrowings 22 533. Lease liabilities 21 233,Represents the lessee s Other liabilities 57 264. obligation to make lease,payments Total liabilities 101 030. Equity 27 037,Total liabilities and equity 128 067. 2018 Deloitte Tax Services Sdn Bhd MFRS 15 16 10,Recognition exemptions.
term value,lease asset,12 months Lease by lease,By class of asset absolute basis. No purchase option Not highly dependent,Reassess on any or interrelated with. change to the lease other assets or sub,exemptions. Lease payments recognised as an,Save time and effort. expense on,Increase operating costs reduce,A straight line basis over the lease.
finance costs and reduce,Another systematic basis,2018 Deloitte Tax Services Sdn Bhd MFRS 15 16 11. Measurement,Statement of Statement of,Financial Position Profit or Loss. Right to use Depreciation,Lease liability Finance costs. asset charge,Initial PV of outstanding,At cost N A N A. measurement lease payments,Recognised in,Subsequent Cost less operating costs.
measurement accumulated Amortised Recognised in,depreciation cost Determine the finance costs. and impairment period for,depreciation, Depreciation is measured under Will the lessee take possession of the. MFRS 116 asset at the end of the lease, Impairment is assessed under Yes depreciate till the end of the. MFRS 136 asset s useful life,No depreciate till the earlier of the. end of the asset s useful life or the,Comprises end of the lease term.
The amount of the initial measurement of the lease liability. Any lease payments made at or before the commencement date less. any lease incentives received, Any initial direct costs incurred by the lessee and. An estimate of costs to be incurred by the lessee in dismantling and. removing the asset restoring the site or restoring the asset to the. condition required by the lease either at the commencement date or. as a consequence of having used the asset during a particular period. 2018 Deloitte Tax Services Sdn Bhd MFRS 15 16 12,Illustrative example MFRS 16 vs MFRS 117. Statement of Financial Position,0 1 2 3 4 5, MFRS 117 Operating lease No assets or liabilities are recognised. MFRS 16 Balance sheet,PV of 50 000 4 25, Lease Liability 221 036 180 805 138 363 94 144 48 049. R O U Asset 221 036 176 829 132 622 88 415 44 207,Statement of Profit or Loss and OCI.
0 1 2 3 4 5,MFRS 117 Operating lease, Lease payment operating 50 000 50 000 50 000 50 000 50 000. MFRS 16 Balance sheet, Interest expense finance exp 9 768 7 559 5 781 3 905 1 951. Depreciation operating,44 207 44 207 44 207 44 207 44 207. Front loaded, R O U asset is Lease liability is amortised expenses. depreciated over lease term EBITDA,2018 Deloitte Tax Services Sdn Bhd MFRS 15 16 13.
Lease liability,Measurement considerations,Present value of future lease payments. Lease Present value of Present value of,liability lease rentals expected payments at. end of lease,Most significant areas of judgment,Discount Rate implicit in the lease. rate Incremental borrowing rate,Non cancellable term of the lease. periods covered by an option to extend and the,option to terminate the leases.
2018 Deloitte Tax Services Sdn Bhd MFRS 15 16 14,MFRS 16 case studies. Example 1 Lease of machinery, RRS Sdn Bhd leases a machine from XYZ Sdn Bhd for a period of 3 years commencing on 1 January 2019. The lease requires payment of RM2 000 per month for the duration of the lease term. The net present value of the lease payments is RM54 000. There is no option to renew the lease or purchase the machinery at the end of the lease term. Implication on RSS Lessee,Pre MFRS 16 MFRS 16 Tax Treatment. DR CR DR CR,1 Jan 2019,Statement of,Financial Position. Right of use 54 000 Net present value No tax adjustment. ROU asset of RM72 000 is required,RM2 000 per,month x 3 years.
Lease liability 54 000,2018 Deloitte Tax Services Sdn Bhd MFRS 15 16 15. RRS Sdn Bhd leases a machine from XYZ Sdn Bhd for a period of 3 years commencing on 1 January 2019 The lease requires payment of RM2 000 per month for the duration of the lease term The net present value of the lease payments is RM54 000

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