ACT 125
COMPANIES ACT 1965



NINTH SCHEDULE [Sections 169, 326]

ACCOUNTS

Profit and Loss Accounts


1. There shall be shown in respect of the period of accounting -
















Balance sheet


2. (1) There shall be shown as at the end of the period of accounting -





















(2) For the purposes of this paragraph, where more than one method is used to arrive at any amount shown in the balance sheet, there shall be shown in the balance sheet a separate total in respect of each of the methods so used.

(3) There shall be shown by way of note or otherwise on the balance sheet of every company which is a borrowing corporation or a guarantor corporation, a schedule setting out separately estimates of the amounts of the liabilities payable by and the debts payable to the company -


calculated from the date to which the balance sheet of the company was made up.

3. (1) The method of arriving at the amount of any fixed asset or investment shall, subject to subparagraph (2), be to take the difference between -


(2) For the purposes of this paragraph the net amount at which any assets stand in the company's books at the commencement of this Act (after deduction of the amounts previously provided or written off for depreciation or diminution in value) shall, if the figures relating to the period before the commencement of this Act cannot be obtained without unreasonable expense or delay, be treated as if it were the amount of the valuation of those assets made at the commencement of this Act, and where any of those assets are sold, the said net amount less the amount of the sales shall be treated as if it were the amount of a valuation so made of the remaining assets.

(3) Subparagraph (1) shall not apply -




(4) For the assets under each heading whose amount is arrived at in accordance with subparagraph (1) there shall be shown -


(5) As respects the assets under each heading whose amount is not arrived at in accordance with subparagraph (1) because their replacement is provided for as mentioned in subparagraph (3)(b) there shall be stated -


Statement of Changes in Financial Position


4. There shall be annexed to every profit and loss account and balance sheet a statement of changes in financial position showing separately -


except that in respect of consolidated accounts of holding and subsidiary companies as required by paragraph 5 of this Schedule the statement of changes in financial position shall be the consolidated statement of changes in financial position of the holding and subsidiary companies and the statement relating to the holding company alone need not be so annexed.

Holding and Subsidiary Companies


5. (1) Subject to subparagraph (4), there shall be annexed to the profit and loss account of every holding company a consolidated profit and loss account of the holding company and of its subsidiary companies eliminating all inter-company transactions and showing separately that part of the profit or loss of the subsidiary companies attributable to shares in subsidiary companies owned other than by the holding company or its subsidiary companies.

(2) There shall be clearly stated (by way of note or otherwise) either in the profit and loss account of the holding company or in any document annexed thereto pursuant to subparagraph (1) the name, place of incorporation, principal activities of, and percentage of issued share capital held by the holding company in each subsidiary to which that profit and loss account or other document relates.

(3) Subject to subparagraph (4), there shall be annexed to the balance sheet of every holding company a consolidated balance sheet of the holding company and of its subsidiary companies eliminating all inter-company balances and showing separately that part of the net assets of the subsidiary companies attributable to shares in subsidiary companies owned other than by the holding company or its subsidiary companies.

(4) Notwithstanding anything in this paragraph -





(5) Such profit and loss accounts and balance sheet as required by subparagraphs 5(1), 5(3) and 5(4) of this Schedule shall be in the same form as the profit and loss account and balance sheet of the holding company and shall be accompanied by the auditor's report thereon.

(6) In the case of a subsidiary company incorporated in a country outside Malaysia (whether it has or has not established a place of business in Malaysia), which country has been declared by the Minister by notice published in the Gazette to be a country to which this paragraph applies, it shall be sufficient if the separate profit and loss account or balance sheet, as the case requires, of the subsidiary company is in such form and is so reported upon by auditors and contains such particulars and includes such documents , if any, as the company is required to make out and lay before the company in a general meeting by the law for the time being applicable to the company in the place where it is incorporated.

(7) If the auditor's report on the accounts of a subsidiary company is qualified in any way, the consolidated balance sheet of the holding company, as the case may be, shall contain particulars of the manner in which the report is qualified in so far as the matter which is the subject of the qualification is not covered by the holding company's own accounts and is material from the point of view of its members.

(8) There shall be shown under separate headings in the balance sheet of every subsidiary company the extent of its holding of shares in its holding company and in other related corporations.

(9) This clause shall not apply to a subsidiary which would not be subsidiary but for the operation of section 5 (1) (a) (i) or (ii) of the Act.

General


6. (1) All amounts shown in profit and loss accounts and balance sheets shall be quoted in Malaysian currency, and not otherwise.

(2) Except in the case of the first balance sheet or profit and loss account laid before the company after the commencement of this Act, there shall be shown in every balance sheet and profit and loss account the corresponding amounts for all items shown in the balance sheet or profit and loss account for the previous financial year.

(3) Where any such corresponding amount is not comparable with the amount to be shown for the item in question in respect of the financial year to which the balance sheet or profit and loss account relates, the former amount shall be adjusted and, if material, particulars of the adjustment and the reasons for it shall be disclosed in a note to the accounts.

(4) Every profit and loss account or balance sheet shall state by way of note if any translation into Malaysian currency has been made for the purposes of the profit and loss account and balance sheet together with the basis of the translation of the other currency into Malaysian currency.

(5) Every profit and loss account and balance sheet shall include a statement of accounting policies adopted by the company or, as appropriate, the holding company and its subsidiaries.

(6) In the case of any consolidated profit and loss account and balance sheet as required by subparagraphs 5 (1) and 5 (3) of this Schedule the accounting policies adopted by the holding company and its subsidiaries shall be the same, and where different accounting policies are used in the accounts of a subsidiary and the effect is material, appropriate adjustments should be made in the consolidated profit and loss account and balance sheet.



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