Y M Ngan & Associates

Y M Ngan & Associates PROFESSIONAL SERVICES IN:

ACCOUNTANCY

COMPANY SECRETARIAL

TAX

BUSINESS ADVISORY

AUDIT

24/12/2025

Have A Happy Jolly Christmas Everyone!

May God Bless You All Always.

26/11/2025

Happy THANKSGIVING DAY
To You and Your Families!

God Bless You All Always!

03/11/2025

E-INVOICE - TRANSACTIONS WITH BUYERS

Currently, businesses (Suppliers) will issue a receipt / bill / invoice in hardcopy and/or softcopy (e.g. via e-mail) to customers (Buyers) to record a transaction (e.g. sale of goods or provision of services to Buyers for personal consumption).

Upon implementation of e-Invoice, Suppliers are required to issue e-Invoice for all of its transactions. However, certain Buyers, particularly customers and certain businesses, may not require an e-Invoice as proof of expense.

To assist the Suppliers in complying with e-Invoice requirements and to reduce the burden to both Suppliers and Buyers, the IRBM allows the Suppliers to consolidate the transactions with Buyers (who do not require an e-Invoice) into a consolidated e-Invoice on a monthly basis.

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03/11/2025

WHAT IS EFFECTIVE INTEREST RATE?

The Effective Interest Rate (EIF) or simply effective rate is the interest rate on a loan or financial product restated from the nominal interest rate as an interest rate with annual compound interest payable in arrears.

It is used to compare the annual interest between loans with different compounding periods like week, month, year, etc. The effective interest rate differs in one important respect from the annual percentage rate (APR): the APR method converts this weekly or monthly interest rate into what would be called an annual rate that doesn’t take into account the effect of compounding.
By contrast, in the EIR, the periodic rate is annualized using compounding. It is the standard in the European Union (EU) and a large number of countries around the world.

The EIR is more precise in financial terms, taking into consideration the effects of compounding.

In accountancy, the term effective interest rate is used to describe the rate used to calculate interest expense or income under the effective interest method. This is not the same as the effective annual rate, and is usually stated as an APR rate.

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03/11/2025

For persons whom are required to issue e-Invoices for donations or contributions received, what is the e-Invoice treatment for donations or contributions received in monetary form?

An e-Invoice, either an individual e-Invoice or consolidated e-Invoice, is required to be issued for any monetary form of donation or contributions received, regardless of the payment method (e.g., cash, cheque, bank transfer, direct debit, wire transfers, etc.).

(1) Where the donor requests for an e-Invoice.
The institution or organisation is required to issue an individual e-Invoice to the donor.

(2) Where the donor does not requests for an e-Invoice.
The institution or organisation is required to issue a consolidated e-Invoice within seven (7) calendar days after the month end, by aggregating the receipt numbers of all donations or contributions for which no individual e-Invoice has been issued.

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31/10/2025

Are persons not approved for tax exemption under the Income Tax Act 1967 required to issue self-billed e-Invoices for goods imported from outside Malaysia or services acquired from foreign suppliers?

Any person, including religious institutions or organisations, is required to issue self-billed e-Invoices if the circumstances outlined in Section 8.3 of the e-Invoice Specific Guideline are applicable to them.

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31/10/2025

Can a director resigns upon the commencement of a winding-up?

Section 445(2) of CA 2016 states that upon appointment of a liquidator, all the powers of the Board of Directors shall cease and the Companies Commission of Malaysia (CCM) will not allow for any change to be made to the board composition thereafter. However, there are instances where a director may attempt to resign from a company or vacate his office due to unfortunate circumstances upon commencement of winding up and the lodgement of notification of his resignation as required by the CCM has to be via a court order.

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31/10/2025

WHAT IS ACCOUNTING STANDARDS?

Financial Reports and Financial Statements are an important entity which helps in running businesses and financial activities in the world. It would be right to say that financial reports are a must and commerce is dependent on financial reporting.

The function of accounting standards is to help encourage and champion the use of sound financial systems in the local sector while promoting financial solidity globally. These standards help strengthen how finances are regulated and supervised, while at the same time increasing transparency.

Accounting standards are termed as a point of reference available for application in many places all around the world. As an example, the Accounting Standards in United Kingdom (U.K.) are agreed upon the U.K. IAS and are employed for use through the U.K.

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30/10/2025

Are donors required to issue self-billed e-Invoices for donations or contributions made to charitable organisations which are not approved for tax exemption under the Income Tax Act 1967?

No, they are not required to issue self-billed e-Invoices for such donations or contributions made.

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30/10/2025

PROVISIONS AND PROFESSIONAL JUDGMENT

An entity’s accountant is required to exercise professional judgment in determining whether an obligation constitutes a provision. If it is a provision, professional judgment is also required in measuring the provision. The need for professional judgment introduces discretion and subjectivity into financial reporting, which creates potential pressures from management for the accountant to manipulate reported accounting numbers, including engaging in earnings management.
Professional judgment is also required in the measurement of provisions. Recall that IAS 37 states that the best estimate is to be used to measure provisions. The best estimate includes the use of either the “expected value” method or the “most likely outcome” method. The inputs used to derive the best estimate under either method, namely the likelihood of an outcome or outcomes occurring, are often subject to the discretion of an entity’s management. Management may exploit this discretion to understate provisions, and thereby reduce the entity’s total liabilities. An accountant must exercise professional judgment in ensuring that these inputs can be verified.

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30/10/2025

AUDIT OF BIOLOGICAL ASSETS

Auditors are expected to exercise a high degree of vigilance when conducting the audit of biological assets, an area where subjectivity, judgements and estimates abound. In the course of conducting audit reviews, the Practice Review Department (PRD) has identified gaps in the audit of biological assets.

Malaysian Financial Reporting Standard (MFRS) 141: Agriculture is applicable to biological assets (except for bearer plants), agricultural produce at the point of harvest and government grants related to biological assets.

It is a common Practice Review finding that auditors failed to identify, assess and evaluate the appropriateness of the recognition of such biological assets, which meet the definition of agricultural activity pursuant to MFRS 141 and MPERS Section 34. Auditors are required to document their consideration and judgement made in evaluating management’s assessment on whether an agricultural activity falls within the scope of biological assets. It is critical for auditors to recognize and communicate to management, that adoption of the biological assets standards is not a matter of choice when the criteria set out in the accounting standards are fulfilled.

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30/10/2025

Can a set of financial statements which has more than 12-month reporting period due to a change of financial year end be submitted with the Registrar of Companies?
A company is allowed to submit a set of financial statements of more than a 12-month reporting period with the Registrar but it is advisable that prior application is made to the Registrar for an extension of time (section 259(2) of the CA 2016) to circulate the financial statement within six (6) months from the new financial year end.

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Address

LORONG BATU NILAM , BANDAR BUKIT TINGGI
Klang
41200

Opening Hours

Monday 09:00 - 18:00
Tuesday 09:00 - 17:00
Wednesday 09:00 - 18:00
Thursday 09:00 - 17:00
Friday 09:00 - 17:00
Saturday 09:15 - 13:15

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