Taxation II

Tutorial 5
Basis Period: Changes in Accounting Period
ANSWER SCHEME

1. Wai Bhd normally prepares its accounts to 30 September annually. The company
changed its accounting date to 30 June for its own convenience. The accounting
periods and the adjusted income for each period was as follows:
Accounting Period Adjusted Income (RM)
Year ended 30.9.2016 20,400
1.10.2016 – 30.6.2017 15,600
1.7.2017 – 30.6.2018 42,600

State the basis period and calculate the adjusted income for the relevant YA.

Year of Basis Period Period Adjusted Income

Assessment
2016 1.10.2015 – 30.9.2016 12 months 20,400
2017 1.10.2016 – 30.6.2017 9 months 15,600
2018 1.7.2017 – 30.6.2018 12 months 42,600

2. Mei Sdn Bhd normally closed its account on 30 June every year. The company
decides to change its accounting date to close on 31 December starting 2013.
Accounts prepared as follows:
i) 1.7.2012 – 30.6.2013
ii) 1.7.2013 – 31.12.2013
iii) 1.1.2014 – 31.12.2014
iv) 1.1.2015 – 31.12.2015
State the basis period for relevant YA.

Year of Basis Period Period

Assessment
2013 1.7.2012 – 30.6.2013 12 months
2014 1.7.2013 – 31.12.2014 18 months
2015 1.1.2015 – 31.12.2015 12 months

3. Pin Bhd normally makes up account to 31 December each year. For its own
convenience, the company changed its financial year end to 30 June starting 2013.
The company drew up accounts as follows:
 Accounting Period Adjusted Income (RM)
1.1.2012 – 31.12.2012 43,000
1.1.2013 – 30.6.2013 25,000
1.7.2013 – 30.6.2014 18,000

State the basis period and calculate the adjusted income for relevant YA.

Year of Basis Period Period Adjusted Income

Assessment
2012 1.1.2012 – 31.12.2012 12 months 43,000
2013 1.1.2013 – 30.6.2013 6 months 25,000
2014 1.7.2013 – 30.6.2014 12 months 18,000

4. Syed Saddiq Sdn Bhd commence business on 1 November 2013 and normally
makes up account to 31 December each year. When the company merge with parent
company, the company changed its financial year end to 30 April starting 2016. The
company drew up accounts as follows:
Accounting Period Adjusted Income (RM)
1.11.2013 – 31.12.2014 18,000
1.1.2015 – 30.4.2016 30,000
1.5.2016 – 30.4.2017 20,000

State the basis period for the relevant year of assessment (YA) and the adjusted
income.

Year of Basis Period Period Adjusted Income

Assessment
2014 1.11.2013 – 31.12.2014 14 months 18,000
2015 1.1.2015 – 31.8.2015 8 months 15,000
2016 1.9.2015 – 30.4.2016 8 months 15,000
2017 1.5.2016 – 30.4.2017 12 months 20,000