The Company Act 2016 in Malaysia takes effective on 31 January 2017. Our system can auto detects the effective date of adopting Company Act 2016 and modify audited financial statements accordingly.
Changes in ISA 700 (Revised) and ISA 570 (Revised)
ISA 700 (revised) - Forming an Opinion and Reporting on Financial Statements
- Built-in latest audit templates for ISA700 (revised) which can auto detect and generate latest format of auditors' report in audited financial statements for accounting period ending in 31 December 2016 (effective date).
- Auto detection and selection of old and revised format of auditors' report by checking effective date of ISA 700 (revised) against ending accounting period.
ISA 570 (revised) - Going Concern
Where the Company has going concern issues i.e. deficiency in equity fund or substantial net loss with deficiency in working capital, the system has:
- Built-in mechanism to auto detect conditions and provide auto generation of auditors' report that fulfills the requirement under ISA 570 (revised) Going Concern.
- Built-in mechanism to auto and dynamically cross-reference note number in auditors' report to 'Basis of Preparation' in note to financial statements.
- Built-in mechanism to auto detect conditions and provide auto generation of content to 'Basis of Preparation' in note to financial statements that fulfills Going Concern under Accounting Standard requirement.
Company Act 2016
The Company Act 2016 in Malaysia takes effective for companies with accounting period ending on 31 January 2017 or thereafter. Our system can auto detects the effective date of adopting Company Act 2016 and modify audited financial statements accordingly.
The major features include
- Auto selection of the Company Act 1965 or the Company Act 2016, depending on ending accounting period of the companies.
- Terminologies in respect of sections and regulations under Company Act 1965 to be replaced automatically with matching sections and regulations under Company Act 2016 for reports, letters and correspondences if new Act is detected in the system.
- Auto selection either one or two directors to sign Directors' Report
- Under the Company Act 2016 nominal value of ordinary share is no longer applicable. Our system can auto generate disclosure information for share capital in note to financial statements either with or without nominal value, depending on ending accounting period of the companies.
- Highlight non-compliance of sections under the new Act for some accounting items i.e. share premium and capital redemption reserve are required to transfer and merge with share capital under Section 618(2) Company Act 2016