Accrued @ Terakru

Definition

Accrual (accumulation) of something is, in finance, the adding together of interest or different investments over a period of time. It holds specific meanings in accounting, where it can refer to accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These types of accounts include, among others, accounts payable, accounts receivable, goodwill, deferred tax liability and future interest expense.

Unfortunately, the term accrual is also often used as an abbreviation for the terms accrued expense and accrued revenue that share the common name word, but they have the opposite economic / accounting characteristics.

# Accrued revenue: Revenue is recognized before cash is received.
# Accrued expense: Expense is recognized before cash is paid out.

Accrued revenue (or accrued assets) is an asset, such as unpaid proceeds from a delivery of goods or services, when such income is earned and a related revenue item is recognized, while cash is to be received in a latter period, when the amount is deducted from accrued revenues.

In the rental industry, there are specialized revenue accruals for rental income which crosses month end boundaries. These are normally utilized by rental companies who charge in arrears, based on an anniversary of a contract date. For example a rental contract which began on 15 January, being invoiced on a recurring monthly basis will not generate its first invoice until 14 February. Therefore at the end of the January financial period an accrual must be raised for 16 days worth of the monthly charge. This may be a simple pro-rata basis (e.g. 16/31 of the monthly charge) or may be more complex if only week days are being charged or a standardized month is being used (e.g. 28 days, 30 days etc.).

Accrued expense, in contrast, is a liability with an uncertain timing or amount, but where the uncertainty is not significant enough to qualify it as a provision. An example is a pending obligation to pay for goods or services received from a counterpart, while cash is to be paid out in a latter accounting period when the amount is deducted from accrued expenses.

Inventories / Stok / Inventory

Definition of Inventory

A company's merchandise, raw materials, and finished and unfinished products which have not yet been sold. These are considered liquid assets, since they can be converted into cash quite easily. There are various means of valuing these assets, but to be conservative the lowest value is usually used in financial statements.

Bank

What is Bank?

A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:

A central bank circulates money on behalf of a government and acts as its monetary authority by implementing monetary policy, which regulates the money supply.

A commercial bank accepts deposits and pools those funds to provide credit, either directly by lending, or indirectly by investing through the capital markets. Within the global financial markets, these institutions connect market participants with capital deficits (borrowers) to market participants with capital surpluses (investors and lenders) by transferring funds from those parties who have surplus funds to invest (financial assets) to those parties who borrow funds to invest in real assets.

List of bank in Malaysia

1) Affin Bank Berhad
2) Alliance Bank Berhad
3) AmBank Berhad
4) CIMB Bank Berhad
5) Hong Leong Bank Berhad
6) Malayan Banking Berhad (Maybank)
7) Public Bank Berhad
8) RHB Bank Berhad
9) Bank Simpanan Nasional
10) Bank Islam
11) Agro Bank
12) Tabung Haji
13) Bank Rakyat
14) Bank Muamalat
15) Bank Negara

Foreign Bank in Malaysia

1) Citibank Berhad
2) HSBC Bank Malaysia Berhad
3) Oversea-Chinese Banking Corporation (OCBC Bank Malaysia Berhad)
4) Standard Chartered Bank Malaysia Berhad (StanChart)
5) The Bank of Nova Scotia Berhad (Scotiabank)
6) The Royal Bank of Scotland Berhad (RBS)
7) United Overseas Bank Malaysia Berhad (UOB)

18 Islamic banks (local & foreign)

1) Asian Finance Bank Berhad
2) Alliance Islamic Bank Berhad
3) Asian Finance Bank (M) Berhad
4) Bank Islam Malaysia Berhad
5) Bank Muamalat Malaysia Berhad
6) Hong Leong Islamic Banking Berhad
7) CIMB Islamic Bank Berhad
8) RHB Islamic Bank Berhad
9) AmIslamic Bank Berhad
10) Affin Islamic Bank Berhad
11) Al Rajhi Banking & Investment Corporation (Malaysia) Berhad
12) Kuwait Finance House (Malaysia) Berhad
13) Maybank Islamic Berhad
14) Public Islamic Bank Berhad
15) HSBC Amanah Malaysia Berhad
16) OCBC Al-Amin Bank Berhad
17) Standard Chartered Saadiq Berhad
18) Unicorn International Islamic Bank Malaysia Berhad

Development Financial Institutions (Government-owned banks)

1)Agro Bank Malaysia Berhad
2)Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat)
3)Bank Simpanan Nasional Berhad
4)Export-Import Bank of Malaysia Berhad (Exim Bank)
5)Bank Perusahaan Kecil & Sederhana Berhad ((Small Medium Enterprise) SME Bank Berhad)
6)Sabah Development Bank Berhad (SDB)
7)Sabah Credit Corporation Berhad
8)Lembaga Tabung Haji
9)Credit Guarantee Corporation Malaysia Berhad (CGC)
10)Malaysian Industrial Development Finance Berhad (MIDF)
11)Bank Pembangunan Malaysia Berhad (BPMB) (The development bank of Malaysia)


Malaysian Credit Cards Issuers

1) Affin Bank Berhad
2) Alliance Bank Berhad
3) Al-Rajhi Bank (i)
4) AmBank Berhad
5) Bank Islam Malaysia Berhad (i)
6) Bank Simpanan Nasional (i)
7) CIMB Bank Berhad
8) Citibank Berhad
9) EON Bank Berhad
10) Hong Leong Bank Berhad
11) HSBC Bank (Malaysia) Berhad
12) Malayan Banking Berhad (Maybank / MalayBank)
13) OCBC Bank Berhad
14) Public Bank Berhad
15) RHB Bank Berhad
16) Standard Chartered Bank (Malaysia) Berhad
17) United Overseas Bank Malaysia Berhad
18) AEON Credit Services (M) Berhad
19) MBF Cards Sdn Bhd

Malaysia Debit Cards Issuers

1)Al-Rajhi Islamic Bank
2)Affin Bank
3)Affin Islamic
4)Alliance Bank
5)AmBank
6)Bank Islam
7)Bank Rakyat
8)Bank Simpanan Nasional
9)Bank Muamalat
10)CIMB Bank
11)Citibank
12)EON Bank
13)Hong Leong Bank
14)MAYBANK
15)Public Bank
16)RHB Bank
17)Standard Chartered Bank
18)United Overseas Bank
19)OCBC Bank
20)Kuwait Finance House

Cash / Tunai

Sources from wikipedia
In common language cash refers to money in the physical form of currency, such as banknotes and coins.

In bookkeeping and finance, cash refers to current assets comprising currency or currency equivalents that can be accessed immediately or near-immediately (as in the case of money market accounts). Cash is seen either as a reserve for payments, in case of a structural or incidental negative cash flow or as a way to avoid a downturn on financial markets.

Cash management

Cash management is important for any new or growing business, and here are some tips to aid your company in the collection, concentration, and disbursement of cash.

Cash management is a broad term that refers to the collection, concentration, and disbursement of cash. The goal is to manage the cash balances of an enterprise in such a way as to maximize the availability of cash not invested in fixed assets or inventories and to do so in such a way as to avoid the risk of insolvency. Factors monitored as a part of cash management include a company's level of liquidity, its management of cash balances, and its short-term investment strategies.

In some ways, managing cash flow is the most important job of business managers. If at any time a company fails to pay an obligation when it is due because of the lack of cash, the company is insolvent. Insolvency is the primary reason firms go bankrupt. Obviously, the prospect of such a dire consequence should compel companies to manage their cash with care. Moreover, efficient cash management means more than just preventing bankruptcy. It improves the profitability and reduces the risk to which the firm is exposed.

Cash management is particularly important for new and growing businesses. Cash flow can be a problem even when a small business has numerous clients, offers a product superior to that offered by its competitors, and enjoys a sterling reputation in its industry. Companies suffering from cash flow problems have no margin of safety in case of unanticipated expenses. They also may experience trouble in finding the funds for innovation or expansion. It is, somewhat ironically, easier to borrow money when you have money. Finally, poor cash flow makes it difficult to hire and retain good employees.

It is only natural that major business expenses are incurred in the production of goods or the provision of services. In most cases, a business incurs such expenses before the corresponding payment is received from customers. In addition, employee salaries and other expenses drain considerable funds from most businesses. These factors make effective cash management an essential part of any business's financial planning. Cash is the lifeblood of a business. Managing it efficiently is essential for success.

When cash is received in exchange for products or services rendered, many small business owners, intent on growing their company and tamping down debt, spend most or all of these funds. But while such priorities are laudable, they should leave room for businesses to absorb lean financial times down the line. The key to successful cash management, therefore, lies in tabulating realistic projections, monitoring collections and disbursements, establishing effective billing and collection measures, and adhering to budgetary restrictions.

Creditors/ Account Payable/ Pemiutang

What is CREDITOR?

Creditor is an entity (person or institution) that extends credit by giving another entity permission to borrow money if it is paid back at a later date. Creditors can be classified as either "personal" or "real". Those people who loan money to friends or family are personal creditors. Real creditors (i.e. a bank or finance company) have legal contracts with the borrower granting the lender the right to claim any of the debtor's real assets (e.g. real estate or car) if he or she fails to pay back the loan.

Meaning of Creditor (Wikipedia)

A creditor is a party (e.g. person, organization, company, or government) that has a claim to the services of a second party. It is a person or institution to whom money is owed. [1] The first party, in general, has provided some property or service to the second party under the assumption (usually enforced by contract) that the second party will return an equivalent property or service. The second party is frequently called a debtor or borrower. The first party is the creditor, which is the lender of property, service or money.

The term creditor is frequently used in the financial world, especially in reference to short term loans, long term bonds, and mortgage loans. In law, a person who has a money judgment entered in their favor by a court is called a judgement creditor.

The term creditor derives from the notion of credit. In modern America, credit refers to a rating which indicates the likelihood a borrower will pay back his or her loan. In earlier times, credit also referred to reputation or trustworthiness.

Debtors / Account Receivables / Penghutang

Definition

A company or individual who owes money. If the debt is in the form of a loan from a financial institution, the debtor is referred to as a borrower. If the debt is in the form of securities, such as bonds, the debtor is referred to as an issuer.

Goodwill

Definition of goodwill

Goodwill is an accounting concept meaning the value of an entity over and above the value of its assets. The term was originally used in accounting to express the intangible but quantifiable "prudent value" of an ongoing business beyond its assets, resulting perhaps from the reputation the firm enjoyed with its clients.

Accounting for goodwill

Buyer may be willing to pay more for a business as a going concern because of:

# Good location
# Good customer relations
# Good reputation
# Well-known products
# Experienced and efficient employees and management team
# Good relation with suppliers

Formula to calculate goodwill :

Goodwill = Selling price – (Assets – Liabilities)

OR

Goodwill = Selling price as a going concern – Fair value of separate net assets


Type of Goodwill

a) Inherit Goodwill
#Goodwill generated internally because of the above advantages Inherent goodwill is only an estimation.
#Therefore, it should not be brought into the books, and no accounting entry is required

b)Purchased Goodwill
#It is the goodwill generated during the acquisition of a business
#It is the difference between the selling price of a business as a going concern and the total value of its separable net assets
#It can be treated as an intangible fixed asset.
#Some companies may write it off immediately against reserves, or amortized through the profit and loss account over its useful economic life