Blog

KL Management Services official blog, with recent updates of various services for credit control, debt recovery & management, accounting & taxation, legal compliances, Malaysian taxation updates and so forth.

Accounting standards for financial instruments

Posted in Blog

Accounting standards for financial instruments This accounting standard is by far the most contentious, complicated and still in the process of updating and change, among all the other standards. As frightful as it may sound, the Malaysian Accounting Standards Board (“MASB”) has announced the accounting standards relating to financial instruments shall be implemented and applicable for financial periods beginning on or after 1 January 2010. This will be the one of the most daunting tasks to all financial executives. Accounting standards applicable are as follows:- FRS 139 – Recognition and...

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Goods & Services Tax (GST) in Malaysia, 2010

Posted in Blog, Finance

Goods and Services Tax in Malaysia At the end of 2009, Malaysia’s prime minister Datuk Seri Najib Tun Razak announced that a bill on the proposed introduction of Goods and Services Tax (“GST”) will be tabled at this year’s Budget 2010. Some indicated expectations about GST are as followed: GST is to be implemented from the 3rd quarter of 2011; The rate is set at 4%; and GST is applicable to all businesses with turnover above RM500,000. What is GST? GST is to set to replace the current Sales Tax and Service Tax systems in Malaysia and it is a multi-tier consumption tax; which simply...

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Real Property Gains Tax (RPGT) in Malaysia

Posted in Blog, Business

Recently, Malaysia’s Budget 2010 has created quite a bit of negative reactions within the public, especially the property people.  What has caused this reaction? Prior to 1 April 2007, Real Property Gains Tax (RPGT) has been in effect for quite some time already, and during that time, the RPGT rates are as follows: Duration between Year of disposal and Year of Acquisition RPGT Rates For Companies RPGT Rates For Individuals 2 years and below 30% 30% 3 years 20% 20% 4 years 15% 15% 5 years 5% 5% Above 5 years 5% 0% Real Property Gains Tax (RPGT) rates in Malaysia prior to 1st April 2007...

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Corporate Governance – Nominating and Remuneration Committee

Posted in Blog, Business

Corporate Governance – Committees Nominating Committee The nominating committee is responsible to identify, nominate and orientate new directors, both executive and non-executive. The main reason for delegating such responsibility is to ensure recruitment matters relating to directors are addressed in detail, allowing the Board to spend time on strategic matters. It is, however, the Board’s responsibility to appoint a candidate to be a director. General duties and responsibilities Recommend candidacy for directorship filled by shareholders, taking into consideration their knowledge,...

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Corporate Governance – Audit Committee

Posted in Blog, Business

Corporate Governance The Audit Committee The third part of our Corporate Governance series, we will be covering the functions and responsibilities of an Audit Committee within an organization, which is fundamentally about accountability and good governance. Pursuant to Paragraph 15.10 of the Listing Requirements, all listed companies in Malaysia must have an Audit Committee. This committee will provide the Board of Directors with assurance on the reliability and quality of the financial statements, which certain information shall also be made available to the public. While the Board is...

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Board Structure – Corporate Governance

Posted in Blog, Business

Stemming from my earlier write up on corporate governance, this article is the second part of the series which looks at the factors and qualities that create good corporate governance and its best practices. For this article, we shall address the area of Board of Directors, since they are the driving force of every organization. Therefore, a strong governance framework needs to be established, and should serve the following objectives:- Clarify the roles, responsibilities and accountabilities of the board members and management team; Enable the board to provide strategic guidance and...

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