Meei Shian's comment on CAPITALA. All Comments

Meei Shian
10 Like · Reply
please take note that
Depreciation of right of use asset is not expenses account .
Meei Shian
why should we (Investors)
so worried about it ..
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Meei Shian
please be understand ..
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Meei Shian
unless the investor cannot understand the MFRS 16
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Meei Shian
if you are from accounting back ground I believed you won't worry about this issue
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JJ Yong
But mostly of investors do not understand what is MFRS, this may cause then doing wrong decision.
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Jin Kiat
if without mfrs then the deprn won't be so high
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Meei Shian
JJ Yong .
You are right ..
as an accountant , I should tell ALL the investors and let them have some accounting knowledge as well
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Meei Shian
For depreciation account
during the tax calculation
it will add back to our P&L account
.the only account can be claimed is CA
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Meei Shian
Hope the investors will fully understand about this
1 Like · 5 years · translate
Mistake S
I think to be more accurate look at cash flow statement.
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Ong Hong Ming
@meei shian what do u think about the core net profit of AirAsia group? YoY improved? Should we exclude depreciation of right use of asset for the calculation?
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Meei Shian
mistake s
agreed with you
look at the cash flow statement to understand the whole accounting standard
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Sian Jin Low
Cash flow increase, depreciation of right use is a rental cost for several years, non current asset increase because add an amount of right use of non current asset.
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Mistake S
I am auditor, i think cash flow speak all.
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Elon Asia
How abt gearing ?under normal circumstances, y don use cash to pay liabilities lol
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Hector Lee
ppl gv dividend thn you ask go and pay liabilities, no gv dividend thn you scold ppl, poor TF
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Elon Asia
Cute ah bri lol i don even hold aa bro,i ask for learning u poor or i poor lmao
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Elon Asia
Did i mention i wan dividend lmao i juz ask u hold aa n drop like tis so crying here?dah older than 20 think maturely
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Meei Shian
The ROU ( right of use asset ) will be depreciated on a straight line basis over the SHORTER of the lease term
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Elon Asia
I saw ur comment asking ppl whether that share will go up or nt tis mth?ei dik dah 20still ask tis type of quest if he knows will go up or nt he oredi all in no nid wasting time chitcchat v u la aiyo, better ask something abt company la
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Meei Shian
main reason of higher depreciation of the right of use asset
shorter of the lease term and its useful life
1 Like · 5 years · translate
William Gui
Aiyo sini pun mau Ada drama liao. Lemme park my tent n popcorn here
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WY P
All keyboard econotempiak warrior... Popcorn time...
Why not u guys apply in AA finance dept and teach them how to manage lagi senang kan
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Elon Asia
Lmao guys i only 19 ask something for learning but u guys juz assume i m doubting tony or airasia?lol read my question carefully
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Elon Asia
I reli doubtful about u guys live so old n learn wat in ur life lmao
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Kenny Ngg
actually what happen in depreciation of right use asset? Can explain a liitle bit details?
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Elon Asia
It means when u own the asset u can depreciate over useful life so when the asset have 10years life u depreciate over 10year each year expense is lower,if u lease the asset, u need to depreciate with lower of lease period or useful life,if lease period only 3years then depreciation may be higher
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Mistake S
Is a bit weird to me, an asset you renting, why depreciation on you?
Is like you rent a car, the depreciation should be on car owner rather than you?
1 Like · 5 years · translate
Mistake S
But as an auditor i understand depreciation have nothing to do with cash. It just merely to show, somemore can deduct tax in term of Capital Allowance, that why it show higher deferred tax asset.
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Mistake S
Let say you buy a car rm100, every year depreciation rm10. 10 year later it become rm0, but you did not pay any cash for this 10 year. But let say you sell the car for rm50, then you will get profit of rm50 gain on disposal.
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1 Like · 5 years · translate
Elon Asia
Erm, i m nt doubting u ah i juz asking for discussion ah, u need to depr the asset bcoz u paying lease liabilties? But u never record lease liabilities the first year in ur sopl rite u only record in sofp so u need to depreciate over years in ur sopl?? Do i have any wrong concept?
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Elon Asia
But my concept is u record the car in ur sofp at first but u oredi pay out the money n never record in sopl at first so u pay it as expense in ur sopl for years rather than lump sum in first year
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Mistake S
I dont understand what you saying. What is sofp , sopl
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Elon Asia
Lol i tot u r auditor should know wat is statement of financial postion and statement of profit or loss
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Sian Jin Low
Usually they called P&L, BS
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Elon Asia
我用华语解释,当你买了一辆车你只记录在sofp但是当你买一辆车你没记录这个开销在sopl,所以你把这个开销记录成你每年的开销在sopl
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Sian Jin Low
对,好象从上个季度开始他们就这样 record 了。
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JH Lau
Depreciation is to serve the purpose of funding a new asset to replace old asset after end of useful life.
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Wong YH
statement of financial position and statement of profit n loss...
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Kenny Ngg
如果他租飞机5年的费用是1000, 那么他每年都会有 depreciation 200?
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Mistake S
对,我平时是叫 PL BS的, 你给的例子是买哦,现在是租哦。
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Sian Jin Low
BS 是教科书上以前的名,后来教科书改成 statement of financial position。不过 account 行业很多人还是叫 bs
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Sian Jin Low
YW Him, ask for your opinion, so if didn't use this concept, the profit should be very high right?
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Elon Asia
对啊,你刚刚说买的车,照理来说租应该也是一样啊,你record lease liabilities 在sofp,我assume你的lease liabilities 有1200,可是你没record在sopl啊你只record interest所以应该也要record那个你出的钱?我的说法dui ma
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Mistake S
如果没有用这个concept 可能就多了400m 把
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Sian Jin Low
Mistake, 我也这么认为。。。。。套路啊套路。
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Mistake S
其实我觉得看 cash flow 的 cash from operating就好啦,进来的钱才是钱出去的钱才是钱,其他都是浮云。
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Elon Asia
那如果不record as depreciation,那要record 什么在你的sopl for lease payment
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Mistake S
我是觉得A 租飞机给B, A record depreciation, B record rental fee就好了,很容易理解
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Elon Asia
对对可是现在好像没record rental fee了不是
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Meei Shian
the deprection account must capture in to profit and loss because of MFRS 16
implement from 2019
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Kenny Ngg
所以这个季度的 depreciation 是今年的 rental fee?
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Mistake S
Finance cost, lease liabilities不知道是不是rental
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Cd W
各位晚上好。建议大家去看看qr 里面的note2b(ii), 哪里有explained if using the old accounting standards before MFRS16, the operating lease rental is rm535.9mil, even higher than the depreciation of use of assets rights. 另外一部分record as finance expenses了。

所以简单来说,这deprecation 只是取代operating lease rental的新名词。当中会有少许的数差,RM2.7mil的timing difference。

希望我这样子解释能更容易明白。因为必竟不是人人都懂MFRS的。
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1 Like · 5 years · translate
Meei Shian
as we can see the balance sheet item
there is a lease liabilities and also nine current asset eventhough this is leasing account
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Elon Asia
额,opening liabilities+interest-cash payment =closing liabilities
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Elon Asia
Rental fee照理来讲是你的cash payment 但是depr是base on liabilities
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Elon Asia
Yea haha finally
1 Like · 5 years · translate
Mistake S
这样一说我终于听明白了
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Lye Eit Ping
那operating please rental 是每个季度都要扣除的吗?
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Cd W
对啊,一直扣除到leasing完为止。
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Lye Eit Ping
那接下来的季报都不会好吗,要扣那么多
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Cd W
改正一下,是rm2.7mil的timing difference 不是两千多块钱。
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Sian Jin Low
Cd W, 相差蛮多的不是? 不是 RM 2.7 mill, 是 RM 2700 million
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Cd W
Sian Jin 没有酱多吧?那里应该是rm’000 instead of rm million. 相信是打错了
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Sian Jin Low
lol...........note 2的那个写错了,对,是000
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Sian Jin Low
总的来说,这次 AA profit 降低 95%是真的了。
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Cd W
https://www.klsescreener.com/v2/news/view/573134

看这新闻就知道什么原因profit 下酱多了。並不是因为MFRS16。。。
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Sian Jin Low
yup!.............
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Anson Loo
one important point of the new mfrs 16 is there is contractual obligation ie AA is binded with the lease contract for the entire lease term, no withdrawal with zero cost. hence mfrs 16 treat it as liability of future lease payment has been conclusive, thus the liability was recognised and release to PNL throughout the lease term. In short, it is actually reflecting AA financial more accurately.
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1 Like · 5 years · translate
Tan Jack
Real truth and dont just be blinded by surface numbers:

Revenue increased sharply to RM3.14 billion from RM2.62 billion previously. Strong growth in revenue was driven by an 18 per cent year-on-year (y-o-y) increase in passengers carried to 12.8 million.

Revenue per available seat kilometre (RASK) grew by four per cent to 15.40 sen in Q2, driven by firm demand, with load factor remaining strong at 85 per cent despite a substantial 17 per cent increase in available seat kilometres (ASK).

Ancillary revenue also grew by 39 per cent y-o-y, recorded at RM687 million for the consolidated group, driven by both traditional airline ancillary and non-airline ancillary streams

EBITDA decreased only nine per cent y-o-y to RM473 million in the quarter under review, primarily due to share of prior years’ losses at AirAsia India that was previously not recognised amounting to RM147 million.

It was also due to the additional cost related to building up RedBeat Ventures entities, 105 per cent higher maintenance and overhaul expenses on the back of higher maintenance provisions of approximately RM160 million following a higher number of leased aircraft due to the recent aircraft monetisation exercise, and RM10 million fine from the competition watchdog.
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William Au
Gearing ratio increased after the adoption of New MFRS 16.
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