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Wednesday
30th March 2011

The Star

E-file via smartphone


Lembaga Hasil Dalam Negeri (LHDN)

Retaining valuable staff


How to select, develop and reward top talent is critical to keeping them on your payroll
Human resource management

Good corporate behaviour spells profits?


Corporate responsibility awards 2010
Award, corporate social responsibility (CSR)

NST

Plan for tax e-filing via smartphones


Rupinder Singh
The Inland Revenue Board Of Malaysia (IRB) and its e-Filing service provider, Digicert Sdn
Bhd, are working on plans to allow online tax submissions using smartphones by the end
of September this year.
Digicert's chief executive officer Datuk Noor Azli Othman said the company and
IRB want to be pioneers in the use of smartphones.
"Taxpayers would surely demand for smartphone technology to be used in the
future.
Full article:
http://www.btimes.com.my/Current_News/BTIMES/articles/digicert/Article/
Lembaga Hasil Dalam Negeri (LHDN)

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Tuesday
29th March 2011

Financial Daily

Mazars

Bracing for the Competition Act


Come Jan 1, anti-competitive behaviour will be in the government’s crosshairs
Law/Act

The Star

Digital devide
A publisher’s move to limit the number of it’s e-books in libraries can be loaned out is
raising hackles among librarians and bookworms
Libraries

Mazars

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Monday
28th March 2011

NST

Auditor raps India's state-run ONGC over unrealistic forecasts


New Delhi: India's auditor has rapped state-run ONGC over its US$2.12 billion purchase of
Imperial Energy, saying unrealistic output forecasts were made to justify the energy
giant's costliest ever acquisition.
The harshly-worded condemnation comes only months before Oil and Natural
Gas Corp (ONGC) is slated to hold a share sale targeted to raise around US$2.7 billion for
government coffers.
The government auditor said Russia-focused Imperial, whose main assets are in
the Tomskh region of east Russia, has produced lower than projected output and its oil
reserves had been inflated.
Full article:
http://www.btimes.com.my/articles/AuditorRaps/Article/
Auditor

Government Transformation Programme (GTP) advertorial


Government Transformation Programme (GTP)

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The Sun

'Big wins' in GTP report


Pauline Wong

Full article:
http://www.thesundaily.com/article.cfm?id=59268
Government Transformation Programme (GTP)

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Sunday
27th March 2011

NST

How to create a great resume


Human resource management

How to reduce expenses


General

Saturday
26th March 2011

Berita Harian

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The Star
Be an effective leader
Inspire your team members to achieve organisational goals with seven I’s
Leadership, human resource management

One interpretation, two views


Optimistically Cautious By Errol Oh
Malaysia needs to soon decide how property developers should recognise revenue in
their accounts
If anybody has sensible arguments in favour of indecision, let's hear them. The fact is,
when we fail to make a firm and clear stand on important issues, or when we take too
long to do so, it almost always brings undesirable results.
In the case of ATIS Corp Bhd, the absence of a definitive national view on when
revenue should be picked up in the accounts of property developers in Malaysia, has led
to a ridiculous situation in which shareholders are being asked to decide if the company's
current auditors should be booted out because the auditors' take on the matter clashes
with that of the management.
The dispute revolves around a document called IC Interpretation 15 (IC 15),
which the Malaysian Accounting Standards Board (MASB) released in June 2009 as an
exposure draft for public comments. IC 15 is a word-for-word reproduction of IFRIC 15, an
interpretation issued in July 2008 by the International Financial Reporting Interpretations
Committee (IFRIC) to address agreements for the construction of real estate.
Among other things, IFRIC 15 provides guidance on when revenue from the
construction should be recognised. According to the International Accounting Standards
Board (IASB) the IFRIC is IASB's interpretative arm IFRIC 15 is meant to standardise
accounting practice across jurisdictions for the recognition of revenue among real estate
developers for sales of units before construction is complete.
IC 15 is important because it is supposed to determine whether developers in
Malaysia should abandon the long-standing practice of reporting revenue based on the
progress of construction (the so-called percentage of completion method) and switch
over to the completed contract method, whereby revenue is recognised when the fully-
built units are handed over to the purchasers.
In a press release to announce the publication of the draft IC 15 in 2009, the
MASB pointed out that the document might have “a significant impact to the real estate
industry, particularly those involved in multiple-unit developments, such as apartments
and condominiums and sell the units before the construction is completed”.
“The Interpretation requires entities to determine whether the sale and purchase
agreements are construction service contracts or sale of goods and whether the
percentage of completion method is appropriate for some agreements whilst for others,
revenue is recognised only at the point the constructed goods are delivered to the
customers,” the board added.
The original plan was for the relevant Malaysian entities to adopt IC 15 for
financial years beginning on or after July 1, 2010. However, last August, the MASB
deferred the application of IC 15 to January 1, 2012. For one thing, the IASB is expected
to come up with a new accounting standard on revenue from contracts with customers
in the middle of this year. The deferment is so that the proposed standard can be
examined and feedback given via the MASB, before going ahead with the adoption of
IC 15, if still necessary.

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The other reason for the postponement is to allow stakeholders in Malaysia to


continue to deliberate on the implementation of IC 15. In the press release to announce
its change of mind, the MASB acknowledged that Asia's real estate industry operated
primarily on the sell-and-build concept, in which both the seller and buyer shared certain
elements of risk over the real estate under construction. This, the board noted, might be
different from real estate business models employed in other jurisdictions. It added:
“Nonetheless, entities who wish to early apply IC 15 can do so if they wish.”
And this was what Mutiara Goodyear Development Bhd did with its accounts for
the financial year ended April 2010. Said the developer in the notes to its accounts: “The
adoption of IC 15 resulted in a change in accounting policy, which was applied
retrospectively, whereby the recognition of revenue from all property development
activities of the group was changed from the percentage of completion method to the
completed method.”
ATIS comes into the picture because following a takeover completed in
November 2010, Mutiara became a 61% subsidiary of ATIS. This means that the parent
company's consolidated financial statements will incorporate Mutiara's results. Mutiara's
auditors are KPMG, a Big Four firm. According to ATIS, KPMG concurred with the Mutiara
board of directors' decision to use the completed contract method. This is backed up by
the fact that KPMG issued a “clean” audit opinion on Mutiara's 2010 financial statements.
However, ATIS says its own auditors, Mazars, insists that property developers in Malaysia
should stick to the percentage of completion method. “Consequently, after due
deliberation and for consistency in applying IC 15, we have received requisition from
three shareholders for the removal of Mazars as auditors and appointment of KPMG as
new auditors of ATIS in place of Mazars on March 9,” says ATIS in an announcement to
Bursa Malaysia on March 14. The EGM will be on April 12.
Mazars in Malaysia is part of a global organisation with headquarters in France,
which incidentally is one of the few Western countries that uses the percentage of
completion method for property development. It should be noted that the Real Estate
and Housing Developers' Association, which maintains that the percentage of
completion method should apply in Malaysia, relied on input from Mazars Malaysia in
coming up with a memorandum on IC 15, which was submitted to the MASB, Malaysian
Institute of Accountants and Securities Commission.
So what we have here are two opposing interpretations of an interpretation! And
two auditors are on each side of the divide. How are the shareholders, particularly the
minority shareholders, expected to make a well-informed decision at the EGM?
Essentially, if they vote for the two resolutions, they are implicitly supporting the view that
IC 15 outlaws the percentage of completion method. Are they qualified to make such a
call?
We can't change what has happened with ATIS, and the company will probably
proceed with the EGM. But this episode highlights the need to quickly resolve the IC 15
issue so that there's no more ambiguity on which of the two methods to employ.
One option is to extract some concessions and clarification from the IASB to take
into account the fact that property development in many parts of Asia is significantly
different from that of the West. That requires time and considerable skills in diplomacy
and negotiations. Also, it's tough to reconcile this appeal for localised accounting
treatment with the push for global accounting standards.
Another way is for the MASB to go its own way and declare that it accepts the
IASB's package of standards except for the part that demands for completed contract
method in real estate development. That will be frowned upon, and may make Malaysia
an outcast. At best, it's a last resort.

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The best way may well be to make changes in an area we can control the most
the legal and regulatory framework that governs our property sector. If we need to
introduce legislative and administrative changes that will allow the use of percentage of
completion method based on the criteria spelled out in IC 15, we should work on it with
some urgency. Dauntingly technical decisions with broad impact should be in the hands
of the experts with real authority, not the shareholders of listed companies.
Deputy executive editor Errol Oh often has problems choosing what to have for
dinner. If ever he is asked to decide on the right accounting treatment for a listed
company, he is likely to curl into a fetal position and hum a Justin Bieber tune.
Financial Reporting Standards

Zarinah’s term as SC chairman extended


Kuala Lumpur: The Securities Commission Malaysia (SC) has extended Tan Sri Zarinah
Anwar's tenure as chairman for one year with effect from Apr 1, 2011.
Zarinah, who joined the SC as deputy chief executive in 2001, has held the
chairman's post since April 2006, it said in a statement Friday. - Bernama
Suruhanjaya Sekuriti (SC)

Industry excellence awards 2010


Award

MGO not enforced due to mitigating factors


Risen Jayaseelan
Sources explains why SC did not force Nylex and TRC to conduct an MGO
The Securities Commission (SC)'s rationale for imposing administrative sanctions against
the controlling shareholders of two listed companies last year for their failure to conduct
mandatory general offers (MGOs) was due to the presence of mitigating factors, sources
close to the SC explained.
The companies involved are Nylex (M) Bhd and TRC Synergy Bhd.
Last year, major shareholders of both companies were found to have breached
the creeping provisions in the Malaysian Code on Take-Overs and Mergers 1998 by
acquiring more than 2% of the voting shares in the two affected companies within a
period of six months.
Full article:
http://biz.thestar.com.my/news/story.asp?file=/2011/3/26/business/8346147&sec=busine
ss#13014577667181&if_height=642
Suruhanjaya Sekuriti (SC)

Get answers to your tax queries


Compiled by Hariati Azizan
The taxman is knocking again but before you file in your returns, make sure you have all
the facts at hand to maximise your savings.
Every year, senior project manager Junieta Jamil spends some RM3,000 on her mobile
phone and Internet service bills. So she is happy that this year, she can get tax relief on
her broadband subscription fees.
“I cannot leave home without my Blackberry, When I'm home, I'm forever
connected to the Internet so I am happy that I can get tax relief for that. It might not be
much but it is still something,” she says.

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It is time to file taxes again, and Malaysian taxpayers have until April 30 to do so.
Full article:
http://thestar.com.my/news/story.asp?file=/2011/3/27/nation/8350248&sec=nation
Tax

NST

Advertorial
Suruhanjaya Syarikat Malaysia
Incorporate companies online in one day
Suruhanjaya Syarikat Malaysia (SSM)

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Friday
25th March 2011

The Star

‘Abolish windfall tax’ call


Hanim Adnan
Oil palm plantation players claim taxation too high
Petaling Jaya: The plantation sector, one of the most heavily-taxed sectors in the
country, is urging the Government to seriously re-consider abolishing or reviewing the
imposed crude palm oil (CPO) windfall profit tax (WPT) for the sector.
An industry source claim that while most sectors of the economy had to pay just
26% corporate tax, the total tax paid by the plantation sector had exceeded 46% which
is 20% more than other sectors.
The source told StarBiz that the current tax exposure among plantation players
was high especially when they had to pay a series of tax, cess, levy as well as sales tax for
oil palm planters in Sabah and Sarawak imposed by the state government.
Full article:
http://biz.thestar.com.my/news/story.asp?file=/2011/3/25/business/8343068&sec=busine
ss#13014544012811&if_height=529
Tax

The Sun

GST: Its impact on real estate


Elvin Fernandes
A goods and services tax (GST) has been talked about for some time and is still a key part
of the government’s plan to reform the tax system in Malaysia. Once introduced, a GST
at 4% will replace the existing sales and services tax. While the GST is expected to
generate more revenue, it will also fix a number of issues with the existing sale and service
tax that is very inefficient, taxes only limited items, is a cost to business, and is open to tax
evasion.
The GST is a much fairer and business-friendly tax as it will apply to most goods
and services but at a lower rate than the current sales and service tax. Importantly it will
not be a cost to business and should assist the competitiveness of Malaysian businesses.
The tax also has wide acceptance with it being adopted by over 140 countries
worldwide including all of our neighbours except Brunei and Myanmar.
However, the move to GST will not be without some issues and one of the
affected areas is real estate. This article looks at the potential costs and implications to
business, investors and the public.
Full article:
http://www.thesundaily.com/article.cfm?id=59192
Goods and Services Tax (GST)

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Thursday
24th March 2011

Berita Harian

Laporan tahunan Bank Negara Malaysia (2010)


• Pertumbuhan ekonomi kukuh
• Garis panduan pembiayaan berhemah akan diperkenal
• Corak perbelanjaan pengguna berubah
• BNM kasi semula dasar tukaran asing
• Dana penampan RM81.4b
• Had pemilikan asing kekal 30 peratus
Bank Negara Malaysia (BNM)

Financial Daily

Bank Negara Annual Report (2010)


• Household debt rises further
• Positive outlook for financial system
• Banking system pre-tax profit up 34% to RM22.8b in 2010
• Domestic economy firmly on growth
• Financial sector blueprint to be unveiled in June
• Expansion versus inflation conundrum
• Economy to grow 5%-6% in 2011-03-30 Inflation seen at 2.5% - 3.5%
• Current account surplus to hit RM100.7b
• Fiscal deficit to narrow to 5.4%
Bank Negara Malaysia (BNM)

Sime Darby suits to begin in April


Sime Darby

The Star

Bank Negara Annual Report (2010)


• Domestic demand to ease volatility
• Managing external contagion
• Household financial position strong
• Demand rebound lifts residential property market
• Price mechanism, external forces are main inflation agents
• Consumer spending the main growth catalyst
• Financing remains conductive
• Firmer Ringgit against US dollar
• Towards a more efficient motor cover framework
• Outstanding banking system financing up 12.7%
• Positive outlook for financial stability
• Key priorities moving forward
• Banks to transition into Basel III without problem

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• Enhancing inter-linkages with global economies


• Enhancing the contribution of Islamic finance
• Changing trends in private investment
• Challenges of volatile capital flows to stability
• Preserving soundness, confidence
• Orderly markets despite external challenges
Bank Negara Malaysia (BNM)

Don’t listen to former officials, says JCorp


Zazali Musa
CEO: Group currently evaluating several restructuring proposals
Johor Bharu: Johor Corp (JCorp), the asset-rich state investment arm that has been in the
news, issued a rare statement yesterday, clarifying its position on rumoured asset sales
within the group and asserting that former officials do not represent the views of the
group.
In a written statement to the media, JCorp president and chief executive officer
Kamaruzzaman Abu Kassim said that JCorp was currently “evaluating several
restructuring proposals and has not made a decision yet on the matter, including the
disposal of assets, if any.”
Kamaruzzaman, who was appointed CEO last December, emphasised that
JCorp would “always exercise due care and consideration in formulating any
restructuring plans”.
Full article:
http://biz.thestar.com.my/news/story.asp?file=/2011/3/24/business/8337082&sec=busine
ss
CEO

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