On 1 January 2012, Malaysia had embarked to full convergence with International Financial Reporting Standards (IFRS)....

 

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On 1 January 2012, Malaysia had embarked to full convergence with International Financial Reporting Standards (IFRS). Illustrate why do we need global accounting standards? (15 marks) ii) Presented below are a number of business transactions that occurred during the current year 2020 for Syarikat ZYX Sdn. Bhd. Interpret the appropriateness of the accounting procedures followed by Syarikat ZYX Sdn. Bhd. with reference to the relevant principle or qualitative characteristics of accounting information. a- On 1 January 2020, the company purchased materials for RM75,000 and this amount was entered in the inventory account. On 31 December, 2020, the materials would have cost RM100,000, so the company made the following entry: Dr Inventory RM25,000 RM25,000 Cr Gain on inventories (2.5 marks) b- The company believed that only net income should be reported on the statement of profit or loss and other comprehensive income. Information on revenues, cost of goods sold and expenses should be omitted. (2.5 marks) c- The company has reported its ending inventory at RM 2,100,000 in the financial statements. No other information related to inventories is presented in the financial statements and related notes. (2.5 marks) d- During the year, the company changed its method of valuing inventories from weighted- average to FIFO. No mention of this change was made in the notes to the financial statements. (2.5 marks) Syarikat ZYX Sdn. Bhd.'s year end is at 31 December. On 1 January 2012, Malaysia had embarked to full convergence with International Financial Reporting Standards (IFRS). Illustrate why do we need global accounting standards? (15 marks) ii) Presented below are a number of business transactions that occurred during the current year 2020 for Syarikat ZYX Sdn. Bhd. Interpret the appropriateness of the accounting procedures followed by Syarikat ZYX Sdn. Bhd. with reference to the relevant principle or qualitative characteristics of accounting information. a- On 1 January 2020, the company purchased materials for RM75,000 and this amount was entered in the inventory account. On 31 December, 2020, the materials would have cost RM100,000, so the company made the following entry: Dr Inventory RM25,000 RM25,000 Cr Gain on inventories (2.5 marks) b- The company believed that only net income should be reported on the statement of profit or loss and other comprehensive income. Information on revenues, cost of goods sold and expenses should be omitted. (2.5 marks) c- The company has reported its ending inventory at RM 2,100,000 in the financial statements. No other information related to inventories is presented in the financial statements and related notes. (2.5 marks) d- During the year, the company changed its method of valuing inventories from weighted- average to FIFO. No mention of this change was made in the notes to the financial statements. (2.5 marks) Syarikat ZYX Sdn. Bhd.'s year end is at 31 December.

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Ansi Need of Convergence with IFRS It provides following benefits 1 With the increase of global markets existence of global standards foster the econo... View the full answer