Asset Accounting

Assets means • Assets under business control • Such assets are the consequences of previous events • Business expects to gain economic benefit from that asset in the future.

Assets means

• Assets under business control

• Such assets are the consequences of previous events

• Business expects to gain economic benefit from that asset in the future.

Cash and Cash Equivalents

mean cash on hand, petty cash, cutting reserve, current account – bank deposit, saving – bank deposit, fixed – bank deposit. However, they exclude fixed deposits for more than 3 months and deposit accounts taken to secure with financial institution.

Investment

• Trading Investment is the investment in all types of debt instruments or marketable capital instruments held by a business with the main objective of selling it in the very near future.

• Available for Sale Investment is the investment in all types of debt instruments or marketable capital instruments that are not considered as securities for trade and in the meantime, are not held to maturity debt instruments; or investment in subsidiaries or associates that can be classified into temporary investments and long-term investments.

• General Investment is the investment in unmarketable capital instruments causing the business to be unable to classify them as trading securities or available for sale securities. General investments can be classified into temporary investments or long-term investments.

• Debt Instrument means the contract declaring that the instrument issuer is directly or indirectly encumbered to make a payment in cash or other assets to the instrument holder based on quantity and condition clearly or implicitly determined. • Hold to Maturity Debt Instrument means investment in securities in the type of debt instrument firmly intended by the business, with the ability to hold to redemption maturity.

Account Receivables

means the money outstanding by the customer for payment of product, cost or service charge, usually sold by the company; as well as notes receivable issued by the debtor that is resulted from the sale of a product or provision of service. However, they exclude receivables and trade note receivables that are director, staff, employee and relevant business.

Allowance for Doubtful Accounts means the amount reserved for receivables expected to be uncollectible, and is deemed as the offset account where transactions are deducted from receivable accounts in the financial statements for declaration of the total net receivables expected to be collectible.

Note: In future IAS 11, the part related to allowance for doubtful accounts is going to be cancelled and the concept according to IAS 39 will be applied instead.