TOPIC: BASIS PERIOD

QUESTION
Cuti-cuti Malaysia Bhd commenced its business on 1 May 2001 and its first set of
accounts was prepared to 31 March 2002. In 2005, the accounting year end was
changed to 31 July and the accounts were prepared on 31 July 2005
and thereafter.
Below are the adjusted profit/ (loss) for the respective accounting period.
Accounting Date
1.5.2001 31.3.2002
1.4.2002 31.3.2003
1.4.2003 31.3.2004
1.4.2004 31.7.2005
1.8.2005 31.7.2006

adjusted Income/ (Loss)

RM
18,000
(6,000)
24,000
31,000
27,000

Required:
State the basis periods and calculate the adjusted income/ (loss) for each of
relevant years of assessment. (show your workings)

the
ANSWER

Basis Period
1.5.2001 - 31.12.2001(8mths)
1.1.2002 - 31.12.2002 (3+9)
1.4.2002 - 31.3.2003(0+3)
1.4.2003 31.3.2004
1.4.2004 31.7.2005
1.8.2005 31.7.2006

Year of Assessment
2001
(18000/11)8
2002
(18000-13091)+
(-6000/12)x9
2003
(-6000/12)x3
2004
2005
2006

Adjusted Income (loss)

RM
13,091
409
(1500)
24,000
31,000
27,000

QUESTION
A.

Tanjung Jara Sdn. Bhd. commenced business on 1 June 2001, made up its first set of accounts to 31 March 2002
and to 31 March for each subsequent years. On 1 July 2004, the management decided to change its accounting
date to 31 October.

In November 2005, Tanjung Jara Sdn. Bhd. was aquired as a subsidiary by Kencana
accounts on 31 January each year.

Bhd. which ends its

The adjusted income and losses of Tanjung Jara Sdn. Bhd. were as follows:
Accounting Period

Adjusted Income/(Loss)

1 June 2001 31 March 2002

1 April 2002 31 March 2003
1 April 2003 31 March 2004
1 April 2004 31 October 2004
1 November 2004 31 October 2005
1 November 2005 31 January 2006
1 February 2006 31 January 2007

35,000
48,000
(18,000)
24,000
(6,000)
20,000
30,000

Required:
Determine the basis periods and adjusted income (loss) of Tanjung Jara Sdn. Bhd. for all the relevant years of
assessment.
(8 marks)

ANSWER
Tanjung Jara
Basis Period

YA

Adjusted Income/ (Loss)

1/6/01- 31/12/01
1/1/02 31/12/02

2001
2002

24,500
46,500

1/4/02 31//3/03
1/4/03 31/3/04
1/4/04 31/10/05
1/11/05 31/1/06
1/2/06 31/1/07

2003
2004
2005
2006
2007

(35K x 3/10)+ (48K x 9/12)

12,000
[48,000 x 3/12]
(18,000)
18,000
(24,000 6,000)
20,000
30,000

[35,000 x 7/10]

QUESTION
ABC Sdn Bhd commenced its business on 1 August 2003, making up its first set of accounts to
October 2004 and to that date for subsequent years. On 1 November 2005, the management
to change its accounting year end to 31 March 2007 and to that date thereafter.
The adjusted income/(loss) were as follows:
Accounting Period

31
decided

Adjusted Income/

(Loss)
RM
01/08/2003 31/10/2004
48,000
01/11/2004 31/10/2005
(36,000)
01/11/2005 31/03/2007
(17,000)
01/04/2007 31/03/2008
10,000
Required:
State the basis period and compute the adjusted income/loss for all the relevant years of
assessment.

ANSWER
(c)
YA
BP
Income/loss
03/
1/8/03-31/12/03
04/
1/1/04-31/12/04
05/

1/11/04- 31/10/05

06/
07/
08

1/11/05-31/7/06
1/8/06-31/3/07
1/04/07-31/3/08

Adjusted
10/15 x 48,000 =
2/12 x (36,000) =
2 months overlap
10/12 x (36,000) =
9/17 x (17,000) =
8/17 x (17,000) =

/16,000
32,000
(6,000)
26,000
NIL
/ (30,000)
/ (9,000)
/ (8,000)
/10,000