TUTORIAL QUESTIONS

TOPIC: BASIS PERIOD

Please complete ALL questions

QUESTION 1

QUESTION 2
QUESTION 3

QUESTION 4

A. DiNEX Sdn Bhd commenced its operation on 1 April 2016 and prepared its first and
subsequent sets of accounts to 30 June. On 1 July 2019, the company decided to
change its accounting year to 28 February 2021. The adjusted income / (loss) for the
relevant financial accounting periods are as follows:

Accounting Period Adjusted income/(loss)

RM
1 April 2016-30 June 2017 (50,000)
1 July 2017 - 30 June 2018 20,000
1 July 2018 - 30 June 2019 (85,000)
1 July 2019 - 28 Februarv 2021 (24,000)

Required:

a. Determine the basis period and the adjusted income/(loss) of DiNEX Sdn Bhd for all
the relevant years of assessment.

(5 marks)

b. Explain the tax treatment on revenue expenses incurred prior to the

commencement date of the business.

(2 marks)