Question 1 (10 Marks)

Consider the following situations:

(a) Aries Sdn Bhd was incorporated on 1 March 2015. It commenced a manufacturing business on 1

May 2015 and prepared its first and subsequent accounts as follows:

Adjusted income/(loss)

RM

1 May 2015 to 31 March 2016

64,000

1 April 2016 to 31 March 2017

(60,000)

1 April 2017 to 31 March 2018

66,000

Required:

Determine the basis periods and the adjusted income for Aries Sdn Bhd for each of the years of

assessment 2016 to 2018.

(6 marks)

(CLO1:PLO1:C4)

(b) On 1 June 2018, the entire shareholding of Aries Sdn Bhd was acquired by Taurus Sdn Bhd.

Consequently Aries Sdn Bhd changed its financial year end to 30 September to be co-terminous

with that of its holding company and made up accounts as follows:

1 April 2018 to 30 September 2018

1 October 2018 to 30 September 2019

1 October 2019 to 30 September 2020

Required:

Determine the basis periods for Aries Sdn Bhd for each of the years of assessment 2015 and

2016.

(4 marks)

(CLO1:PLO1:C4)