Accrual accounting arrives

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. According to the Malaysian government milestone for transition to accrual accounting, what is proposed to take place in 2016?

  2. The implementation of accrual accounting using MPSAS will kick-off with the following public sector entities in 2015, EXCEPT -

  3. The concept of service potential is central to the recognition principles across the MPSASs, not only for assets but also for liabilities, income and expenses. What does service potential in the context of public sector accounting refer to?

  4. It is also common in public sector that an item of PPE may be acquired through a non- exchange transaction. When asset is acquired through non-exchange transaction, how should it be measured?

  5. Which of the following characteristics are often displayed by heritage assets?

  6. Some assets such as road networks, sewer systems, water and power supply systems, and communication networks are commonly described as infrastructure assets. These assets usually display the following characteristics, EXCEPT?

  7. Public sector entities may have large holdings of heritage assets that have been acquired over many years and by various means. What are the most common means?

  8. What is the recognition and measurement criteria set out by the Accountant General’s Department to recognise heritage assets in Malaysia?

  9. Which of the following are some exemptions prescribed by the prescribed by the department of the Accountant General to ease the transition to accrual accounting, which also encompasses PPE?

  10. In accordance to Section 5 of National Land Code 1965, any structure sitting on a piece of land belongs to the land owner. How does this affect the recognition of property, plant and equipment for the public sector?

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