Sunday, 31 July 2011

Target Costing

Definition :

process for ensuring that a product launched with specified functionality, quality and sales price can be produced at a life-cycle cost that generates satisfactory level of profitability

(Cooper and Slagmurder, 1997).

Toyota determined that before a new product is introduced into the market, it must be able to be produced at a cost that will make it profitable when sold at a price acceptable to customers. The acceptable selling price to the marketplace determines the acceptable cost of producing the product.

Target Costing Encourages Design for Production

In the absence of a target costing approach, design engineers are apt to focus on incorporating leading-edge technology and the maximum number of features in a product. Target costing keeps the customer's function, quality, and price requirements in the forefront at all times. If customers do not want leading-edge technology (which could be expensive and untested) and several product features, they will resist paying for them. Focusing on achieving a target cost keeps design engineers tuned in to the final customer.

Left on their own, design engineers might believe that their job ends when they design a product that meets the customer's functional requirements. The tendency is to simply pass on the design to manufacturing and let manufacturing determine how best to produce the product. Further down the line, if the product needs servicing, it becomes the service department's responsibility to determine how best to service the product. A target costing approach forces design engineers to explicitly consider the costs of manufacturing and servicing a product while it is being designed. This is known as design for manufacture.

Minor changes in design that do not affect the product's functioning can often produce dramatic savings in manufacturing and servicing costs. Examples of design for manufacture include the following:
  • Using molded plastic parts to avoid assembling several small parts.
  • Designing two parts that must be fit together so that joining them in the correct manner is obvious to assembly workers.
  • Placing an access panel in the side of an appliance so service personnel can make repairs quickly.
  • Using standard-size parts to reduce inventory requirements, to reduce the possibility of assembly personnel inserting the incorrect part, and to simplify the job of service personnel.
  • Ensuring that tolerance requirements for parts that must fit together can be met with available equipment.
  • Using manufacturing procedures that are common to other products.

Pros and cons
Takes proactive approach to cost management.
Orients organization toward customer.
Breaks down barriers between departments.
Enhances employee awareness and empowerment.
Fosters partnerships with suppliers.
Minimizes non-value-added activities.
Encourages selection of lowest-cost value-added activities.
Reduces time to market. Cons

To be effective, requires the development of detailed cost data.
Requires willingness to cooperate.
Requires many meetings for coordination.


In formation of a partnership, the elements of a valid contract including consideration, competency, free consent, lawful purpose, must be present. Also the relations between partners concerning rights and duties will usually be contained in an agreement or defined by the Partnership Act 1961.

1. Partnership under the Law
Distinct from a company, a partnership firm has no separate legal entity from its founder under the law. A partnership is the relationship between individuals who intend to do a business in common together. It is not a legal persona but a label used by a number of individuals trading under that particular name. Section 6 of the Partnership Act 1961 allows persons to form a partnership to be called a firm under the name in which the business is carried on.

The name under which a firm carries on business is the name applicable to the persons who are
partners of the firm. Thus, when an action is brought against the firm's name, it is in fact an action against all the partners.

For example, Husain, Akbar and Chua are partners, carrying on business under the name of HAS Enterprise. Hence, if any person brings an action against HAS Enterprise, it is an action against Husain, Akbar and Chua.

2. Lawful Purpose
A partnership must be formed for a lawful purpose. A partnership is said to be illegal when it is formed with the intention to carry out business activities against the law. Under Section 47(2) of the Partnership Act 1961, a partnership is also considered as illegal if the number of partners exceeds twenty persons.

3. Capacity
The partners must have the capacity to enter into contract. A partner is competent to contract if he is an adult, of sound mind and has not lost capacity to enter into contracts under any laws. In partnership, a minor can become a partner. However, a minor partner is not liable for all the firm's debt and contractual liabilities. When a minor partner reaches his age of majority, he can
exonerate himself from liability by withdrawing himself from the firm. But if he remains in the firm, he will be liable with other partners.

4. Partnership Agreement
Partners agreement may be in the form of oral or written agreement. The partners may have partnership agreements in writing, usually known as Articles of Partnership which provides for particulars of the firm and the terms of the partnership. In absence of a partnership agreement, the provisions of the Partnership Act 1961 will be applicable to the partners. For mutual rights and duties of partners, they may be varied by the partner's consent as provided under Section 21 of the Partnership Act 1961.

5. Registration of Partnership
A partnership must be registered under the Registration of Businesses Act 1956 (in Peninsular Malaysia); Sarawak Cap.64 (Business Names) and Cap.33 (Business, Professions and Trade Licensing)(in Sarawak); Trades Licensing Ordinance, No. 16, 1948 (in Sabah).

Particulars as to the date of operation of business, name of business, name of partners, registered address of business, type and nature of the business, shall be submitted to the Registrar of Business for registration. Any changes to the above particulars is to be reported to the Registry Department.

In the event of a dissolution of partnership or death or retirement of a partner, a report on the same shall be made to avoid liability to third party after the occurrence of any of the above.


Section 3(1) of the Partnership Act 1961 defines partnership as

"the relation which subsists between persons carrying on a business in common with a view of profit."

Partnership however does not include clubs, societies, mutual benefit organizations and building societies.

(a) The relation between parties
In order to form a partnership, there must be a minimum of two persons. Therefore, there is usually an agreement to be made by the parties which lay down certain terms and conditions relating to the partnership business, and duties and responsibilities of the partners involved.

This agreement will be binding upon every partner and enforceable in law.

(b) The agreement is for business purpose
Section 2 of the Partnership Act 1961 defines 'business' as includes every trade, occupation or profession. Thus, the persons must have an agreement to have a business in common.

(c) The business is for purpose of gaining profit
This means the partners agree to carry on business for profit. Thus, if a person is excluded from sharing any profit in a partnership, then he is not a partner. Similarly, the relationship between persons to do voluntary or welfare works is not a partnership.

Section 3(2) of the Partnership Act 1961 therefore excludes the following list from the definition of partnership:

• The relation between members of a company or association which is registered as a company under the Companies Act 1965 or a co-operative society under any written law relating to co-operative societies;


• The relation between members of a company or association which is formed or incorporated by or in pursuance of any other law having effect in Malaysia or letters patent, Royal Charter or Act of Parliament of the UK.

Type of business

The most common types of business are:
• Sole Proprietorship,
• Partnership; and
• Company.


As far as the duty of an agent to his principal is concerned, the agent is obliged to do the following for the principal:

1. Obey the principal's instructions

2. Act according to the customs prevail if there is no instruction from the principal

3. Exercise care and diligence in carrying out his work and to use skill as he possesses

4. Render proper accounts when required

5. Pay the principal all sums received on his behalf

6. Communicate with the principal

7. Avoid conflict of interest with own duty

8. Not to make any secret profit out of the performance of his duty.

9. Not to disclose confidential information or documents entrusted to him by his principal

10. Not to delegate his authority

However, to this rule there are exceptions. Thus, an agent may delegate his authority or appoint a sub agent under the following circumstances:

(a) Where the principal approves of the delegation of authority.

(b) Where it is presumed from the conduct of the parties that the agent shall have power to delegate his authority.

(c) Where the customs of the trade or business permits delegation.

(d) Where the nature of the agency is such that delegation of the authority to another person is necessary to complete the business.

(e) In cases of necessity or unforeseen emergency (for instance, due to sickness of agent).

(f) Where the act to be done is purely


Life is something like climbing the mountain and make sure the view is beautiful


Puasa Dalam Sejarah Umat Lampau dan Islam

Dr. Haji Mat Saad bin Abdul Rahman
Fellow Kanan

28/09/2006 | Artikel Bahasa Malaysia

Firman Allah yang bermaksud: Wahai orang-orang yang beriman! Kamu diwajibkan berpuasa sebagaimana diwajibkan ke atas orang-orang yang dahulu daripada kamu, supaya kamu bertakwa (al-Baqarah, 2:183).
Terdapat dua perkara yang disentuh di dalam ayat tersebut, pertamanya, puasa adalah ibadat lama. Ia diwajibkan ke atas umat-umat lampau. Justeru, jika merujuk kepada sejarah, kita akan dapati hampir setiap bangsa di dunia ini mengamalkan puasa di dalam kehidupan mereka, walaupun mungkin ianya berbeza dari segi tujuan dan niat masing-masing.

Dalam mentafsirkan maksud: orang-orang sebelum kamu, kita dapati ulamak telah berbeza pendapat, antaranya:

Ada yang mengatakan bahawa ia bermaksud: orang-orang Nasrani sahaja.

Ada pendapat mengatakan, mereka adalah Ahl al-Kitab (iaitu orang Nasrani dan Yahudi).

Ada pendapat lain mengatakan bahawa ia bermaksud seluruh umat terdahulu yang menjadikan puasa sebagai amalan dalam kehidupan mereka sama ada kerana tuntutan keagamaan, kemasyarakatan atau kerana menolak sesuatu bencana dan sebagainya.

Berdasarkan pembacaan saya, didapati bahawa bangsa-bangsa lama seperti India, China, Jepun, Parsi, Mesir Purba, Greek, Rom, Yahudi, Nasrani dan Arab Jahiliyyah, masing-masing telah mengamalkan puasa pada hari atau bulan tertentu dalam setahun.

Secara ringkasnya dapat kita lihat kepada beberapa fakta berikut:


Dalam sejarah bangsa ini memang terdapat amalan puasa yang mempunyai pelbagai matlamat, antaranya sebagai persembahan kepada bulan yang mereka puja. Penganut kepercayaan ini, selain mempersembahkan makanan, minuman dan susu, mereka juga berpuasa selama setengah bulan dan berbuka ketika bulan mengambang pada waktu malam. Mereka akan berhenti amalan ini apabila muncul anak bulan baru (Dr. `Ali Al-Khatib, 62).

Puasa juga di kalangan bangsa India bertujuan melepaskan diri dari kesiksaan akidah tanasukh dan bercamtum dengan tuhan mereka yang disebut sebagai Brahma dan akhirnya mencapai kebahagiaan sejati. Seseorang tidak akan sampai kepada Brahma kecuali apabila dia sudah sampai kepada hakikat dan melepaskan diri dari segala macam ikatan kebendaan. Dengan itu kehidupan secara zahid amat terkenal di kalangan bangsa India. Dalam konteks ini mereka akan berpuasa selama 14 hari tanpa memakan sebarang makanan, kecuali dengan diselang-seli minuman air sahaja selama masa tersebut (Dr. A. Al-Khatib, h. 65).

Dalam pegangan kumpulan Sinata, ahli agama mereka dikehendaki berpuasa setiap hari bermula sejak jatuh matahari sehingga ke waktu naik fajar merah, tanpa makan dan minum sepanjang-panjang masa itu (Dr. A. Al-Khatib, 66)

Selain dari ahli agama kumpulan Sanita, ahli agama secara umumnya dikehendaki berpuasa pada awal musim gugur dan sejuk, dan permulaan musim bunga dan panas, dan pada waktu berlaku gerhana matahari.

Puasa yang mereka amalkan ini kebiasaannya akan berpanjangan jika tujuannya untuk melepaskan diri dari kekuasaan tanasukh atau menghapus akidah ini dari menguasai roh mereka. Berdasarkan kepada akidah tanasukh ini, roh seseorang itu tidak akan mati selama-lamanya, tetapi ia akan berpindah dari satu jasad ke jasad yang lain atau akan berpindah ke jasad binatang, biasanya ia akan berpindah dari yang baik kepada yang lebih buruk. Sepanjang-panjang perpindahan ini mereka akan tersiksa, dengan itu mereka sanggup melepaskan diri mereka dari ikatan keduniaan dan berpuasa sehingga mereka bercamtum dengan tuhan mereka Brahma ataupun menamatkan hidup mereka supaya mereka terlepas dari kekuasaan tanasukh. Kepercayaan ini menyebabkan ramai rakyat India purba yang berpuasa atau mengkuburkan diri di bawah tanah semasa mereka berpuasa (op. cit, 67).

Kepercayaan Budha yang lahir di India tidak terlepas dari amalan ini. Kita lihat Budha sendiri mengamalkan cara hidup berpuasa selama 6 tahun. Dalam pegangan salah satu mazhab Budha, seorang ahli agamanya dikehendaki berpuasa sepanjang masa selama hidupnya, tanpa mengambil apa-apa makanan kecuali sebiji beras sahaja pada waktu duha setiap hari. Dalam peraturan keagamaannya, para pengikut Budha dihendaki berpuasa 4 hari dalam masa sebulan, iaitu pada hari pertama awal bulan, hari kesembilan, kelima belas dan hari kedua puluh dua (op.cit. 72-74)

Tujuan amalan ini ialah untuk sampai kepada hakikat atau mencapai kebahagiaan sejati atau navarna.

China dan Jepun:

Agama Budha kemudiannya berkembang di China dan Jepun. Di negara China ia menjadi agama rasmi negara pada masa pemerintahan Maharaja Fu Ti (58 - 71M.). Di negara Jepun, agama Budha mula bertapak pada pertengahan kurun ke enam Masihi. Dan akhirnya ia juga menjadi agama negara bagi negara itu. Di sini agama ini telah berpecah kepada beberapa aliran yang drastik. Apa yang pentingnya bagi kita ialah dengan berkembangnya agama Budha di kedua-dua negara itu, maka amalan puasa turut diamalkan oleh rakyat kedua-duanya (op.cit, h. 79-81).


Dari bukti bahasa, budaya dan acara keagamaan, dapat dipastikan bahawa orang-orang Parsi sebenarnya adalah berketurunan campuran India-Eropah. Dikatakan sejak abad keempat belas SM., Parsi merupakan sebuah negara yang menganut agama Hindu lama. Dengan itu terdapat di kalangan mereka nama-nama pinjaman seperti Andra, Matra, Faruna dan Vida yang kesemuanya merupakan nama-nama tuhan dalam kepercayaan orang-ornag India. Dan dengan itu sekaligus terdapat di kalangan mereka acara-acara keagamaan orang-orang India purba, seperti pengorbanan, puasa dan lain-lain (op.cit, h. 82).

Kemudian pada abad kelima SM, Parsi mula menerima pengaruh Yahudi. Ekoran kepada pengaruh ini terdapat sebahagian penduduk negara ini yang mengamalkan beberapa acara keagamaan orang-orang Yahudi seperti sembahyang dan puasa.

Hasil percampuran pelbagai kepercayaan di kalangan penduduk Parsi, kita dapati mereka mempunyai program puasa seperti berikut:

1. Berpuasa selama 7 hari pada tiap bulan.
2. Berpuasa selama 2 hari berturut-turut tanpa berbuka apabila bulan purnama.
3. Berpuasa selama 2 hari berturut-turut tanpa berbuka apabila terbit anak bulan.
4. Berpuasa selama 2 hari apabila bulan perpindah kepada garisan jaddi.
5. Berpuasa pula selama 30 hari dan berbuka pada ketika matahari jatuh apabila ia berpindah pada garisan dalwu.
6. Berpuasa pada hari Ahad dan Isnin kerana memberi penghormatan kepada matahari dan bulan (op.cit, h. 82-85).
Mesir Purba:

Puasa di kalangan orang-orang Mesir purba dilakukan sebagai memberi khidmat kepada rumah ibadat dan protokolnya. Seseorang pembantu rumah ibadat sebelum memulakan khidmatnya dikehendaki berpuasa selama 2 hari tanpa memakan apa-apa makanan kecuali air sahaja. Kadang-kadang puasa itu berlanjutan sehingga 42 hari.

Orang-orang awam akan berpuasa pada beberapa waktu yang terdekat kerana berlaku mala petaka seperti banjir besar, mereka akan berpuasa selama 4 hari dan mereka juga berpuasa pada hari-hari berlaku peristiwa sedih yang lain, seperti hari kematian lembu suci mereka dan lain-lain. Kesemuanya diatur oleh ahli-ahli agama mereka (op.cit, h. 104-105).

Greek dan Rom:

Penduduk kedua-dua negara ini tidak banyak berbeza dari segi cara berpuasa dan matlamatnya.

Di Greek, rakyatnya berpuasa dalam pelbagai bentuk ketika berlaku mala petaka dan bala bencana agar segala macam kesiksaan itu akan tamat segera. Ada juga mereka berpuasa kerana mensyukuri tuhan mereka kerana terlepas dari bala atau kerana berlaku perubahan kepada undang-undang negara.

Rakyat negara ini juga akan berpuasa selama 10 hari sebelum melakukan peperangan kerana bertujuan memohon kemenangan.

Di Rom, rakyat negara ini sangat percaya dengan kekuatan puasa sehingga mereka mempercayai bahawa seorang yang berpuasa mampu membunuh ular tedung dengan ludahnya sahaja. Seorang tukang tilik perempuan biasanya berpuasa selama 3 hari disamping beberapa amalan pelengkap yang lain sebelum melakukan apa-apa tilikan. Rakyat terpaksa memberi upah kepadanya jika mereka memohon apa-apa khidmat tilikannya (op.cit, h. 111-113).


Bangsa Yahudi adalah pengikut syari`at Musa. Sebelum menerima kitab Taurat, Musa AS. berpuasa selama 40 hari di Saina'. Tetapi orang-orang Yahudi menganggapnya sebagai puasa khusus Nabi Musa. Ulamak Tafsir mengatakan bahawa Musa berpuasa 40 hari ini tanpa diselangi sama sekali dengan berbuka.

Bagi orang-orang Yahudi, mereka berpuasa sehari sahaja, sebagai puasa wajib, iaitu pada hari ghufran (pengampunan). Mereka mendakwa hanya itu sahaja puasa wajib yang dikenakan ke atas mereka. Puasa-puasa lain adalah puasa sunat yang dilakukan beberapa kali yang tidak tersusun.

Puasa sehari ini mereka lakukan pada satu perempat jam sebelum jatuh matahari hari ke 9, bulan Tashri, iaitu awal tahun Ibri (tahun Yahudi) dan berterusan sehingga selepas satu perempat jam jatuhnya matahari pada hari ke sepuluh. Iaitu kira-kira selama 25 jam berturut. Sepanjang-panjang masa berpuasa itu mereka dilarang memakan, meminum dan melakukan hubungan perkelaminan. Puasa ini menjadi amalan mereka sehingga ke hari ini. Hari kesembilan ini mereka namakan juga sebagai hari kabur, iaitu hari `asyura' mereka.

Tentang puasa-puasa sunat mereka, kita dapati ada beberapa kali mereka berpuasa di sepanjang tahun kerana beberapa perayaan atau peristiwa yang telah berlaku, seperti perayaan kerana mengenangkan mereka terlepas dari gerakan penghapusan atnik di negara Parsi yang dilakukan oleh seorang menteri di negara itu bernama Haman. Untuk perayaan ini, mereka berpuasa selama 3 hari. Perayaan ini dinamakan sebagai Hari Raya Forim. Begitu juga mereka berpuasa kerana peristiwa sebuah rumah ibadat mereka di negara Mesir yang dibakar oleh ahli agama negara itu di bawah pengaruh Parsi. Terdapat 19 hari-hari perayaan mereka sepanjang tahun yang digandingkan dengan amalan berpuasa. Sebahagiannya, mereka berpuasa selama sehari dan ada juga mereka berpuasa selama 7 hari. Perayaan yang paling penting bagi mereka ialah perayaan hari mereka dilepaskan dari buruan tentera Fir`aun dibawah pimpinan Nabi Musa menyeberangi laut Merah yang mereka namakan sebagai hari Fash (op.cit. h. 118-122).


Orang-orang Nasrani sama seperti orang-orang Yahudi merupakan penganut agama Ahl Al-Kitab, mereka juga turut berpuasa sebagai salah satu amalan agama mereka.

Orang-orang Nasrani terbahagi kepada tiga mazhab atau aliran, iaitu Katholik, Othordok dan Protestin. Ketiga-tiga mazhab ini mempunyai cara amalan puasa yang sebahagiannya berbeza di antara satu dengan yang lainnya.

Bagi pengikut mazhab Katholik, mereka mula berpuasa pada pertengahan malam sehingga ke waktu pertengahan siang esoknya. Pada masa berpuasa, mereka dilarang mengambil makanan dan minuman sahaja. Seseorang lelaki diwajibkan berpuasa sejak berumur 15 tahun sehingga ke umurnya 60 tahun dan seorang perempuan pula diwajibkan memulakan puasanya pada umur yang sama dengan lelaki, tetapi ia berakhir pada umur 55 tahun. Menurut mazhab ini, pengikutnya dikehendaki berpuasa hanya pada Hari Puasa Besar sahaja. Gereja mazhab ini membatalkan kesemua puasa-puasa yang lainnya. Hal ini dikatakan kerana tiada nas di dalam Injil.

Mereka juga dilarang memakan daging, susu dan telur pada hari Rabu dan Jumaat pada setiap minggu, begitu juga pada hari-hari Puasa Besar. Larangan ini melibatkan kesemua penganut mazhab ini sejak berumur 7 tahun sehingga ke akhir hayatnya (op. cit., h. 151-152).

Pengikut mazhab Othordok pula, mereka mempunyai program puasa yang tersendiri. Pada mereka, puasa ialah menahan diri dari memakan makanan dalam masa yang tertentu. Masa ini hanya ditentukan oleh padri mazhab mereka yang mempunyai hak berbuat demikian.

Dalam mazhab ini, Puasa Besar dianggap sebagai puasa yang paling penting, masanya selama 50 hari dan berakhir pada kebiasaannya pada hari Raya Kiamat. Mereka juga berpuasa selama 40 hari yang dinamakan Puasa Kelahiran, bermula dari 25hb. Nov. sehingga 6 Januari, iaitu sebelum berlangsung Raya Kelahiran.

Pihak gereja mazhab ini juga turut berpuasa pada hari Rabu dan Jumaat dan sehari puasa yang lain dinamakan dengan Puasa Rasul-rasul.

Selain dari itu, pengikut mazhab ini juga berpuasa selama 15 hari untuk Mariam yang bermula pada awal Masri (bulan kiraan orang-orang Nasrani).

Mereka juga berpuasa tiga hari seperti puasa Nabi Yunus AS., puasa Paramont di antara sehari sehingga ke tiga hari (op.cit., h. 156-158).

Dalam mazhab Protestin pula, puasa menjadi amalan galakan sahaja kerana tiada nas Injil yang mewajibkannya. Dengan erti tiap pengikutnya akan berpuasa mengikut selera masing-masing sahaja. Mazhab ini juga tidak menentukan masa untuk berpuasa dan ia juga tidak menentukan umur seseorang untuk berpuasa, malah segala-galanya diserahkan kepada pilihan atau kemahuan pengikutnya, bila mereka ingin berpuasa dan bila pula mereka ingin berbuka.

Sebahagian yang lain pula menggantikan amalan puasa dengan sesuatu pekerjaan seperti memberhentikan memakan makanan yang mereka suka disamping menyimpan harganya untuk diberikan kepada fakir miskin.

Sebagai kesimpulannya:

1. Kesemua mazhab orang-orang Nasrani menganggap hubungan sex tidak ada kaitan dengan amalan puasa dan tidak membatalkannya.
2. Tidak ada persepakatan pendapat di antara mereka tentang menentukan puasa fardu/wajib.
3. Tidak ada persefahaman di antara mereka tentang masa permulaan puasa dan juga masa akhirnya. Tiap orang boleh menamatkan puasanya pada bila-bila masa yang dikehendakinya.
4. Puasa hari Sabtu diakui oleh Katholik, tetapi tidak disetujui oleh Othordok kecuali Sabtu yang jatuh sebelum hari Raya Kiamat (op. cit. h. 161-163).
Dengan itu jelas kepada kita bahawa puasa orang-orang Yahudi adalah lebih tersusun dari puasa-puasa yang diamalkan oleh orang-orang Nasrani.

Semenanjung Tanah Arab:

Sebelum kedatangan Islam, negara itu sudahpun mengenali agama Hanif yang dibawa oleh Nabi Ibrahim AS., agama Ahl Al-Kitab (Yahudi dan Nasrani), Brahma, Sabi'ah, agama berhala, Majusi, penyembahahan cakrawala dan jembalang. Dengan itu amalan puasa merupakan sesuatu yang tidak asing di kalangan mereka. Sekurang-kurangnya mereka akan terpengaruh dengan orang-orang Yahudi dan Nasrani yang hidup bersama-sama mereka di Semenanjung mereka.

Disebutkan bahawa orang-orang Arab Quraish, khasnya Quraish Makkah, berpuasa pada hari `Asyura' sebagai penebus dosa mereka pada masa Jahiliah. Ada pendapat lain yang mengatakan bahawa puasa `Ashura' itu adalah mengambil sempena hari dipasang kelambu pada Ka`bah. Mereka berpuasa pada 10hb. Muharram. Puasa ini sama seperti puasa orang-orang Yahudi yang juga dinamakan sebagai puasa hari `Asyura' atau puasa hari Pengampunan (op. cit., h. 172).

Selain dari itu, orang-orang Arab yang berada di bawah pengaruh orang-orang Nasrani, ada di antara mereka yang mengamalkan amalan puasa fardu selama 30 hari yang kemudiannya bertukar menjadi 50 hari pada waktu yang tertentu setiap tahun (op. cit., h. 178).

Zaman Islam:

Dalam Islam, puasa terbahagi kepada tiga:

1. Puasa Ramadan.
2. Puasa Khas, seperti puasa nazar dan kaffarah.
3. Puasa Sunat.
Dari segi pusingannya pula, puasa terbahagi kepada dua peringkat, peringkat sebelum Ramadan dan kemudian hanya puasa Ramadan.

Puasa Sebelum Ramadan:

Puasa sebelum Ramadan, terbahagi kepada dua jenis, pertama: puasa `Ashura' dan kedua: puasa tiga hari pada setiap bulan.

Menurut pendapat yang terkuat, puasa `Ashura' sebelum difardukan puasa Ramadan merupakan puasa wajib ke atas orang-orang Islam. Terdapat beberapa buah Hadis yang menunjukkan hukum berkenaan, antaranya Hadis riwayat `Aishah RA. yang menyebut bahawa baginda telah mengarahkan supaya ditunaikan puasa `Ashura', tetapi selepas difardukan puasa Ramadan, seseorang itu bebas sama ada ingin berpuasa puasa `Ashura' ataupun tidak.

Demikian halnya dengan puasa tiga hari setiap bulan, ia juga merupakan puasa wajib sebelum difardukan puasa bulan Ramadan (op.cit., h. 181-186).

Beberapa Aspek Penting Dalam Puasa `Ashura':

1. Ia menunjukkan kaitan di antara Nabi Muhammad SAW. dengan umat-umat sebelumnya dalam ketaatan kepada Allah.

2. Mengagungkan hari-hari bersejarah kerana pada hari itu Allah telah berkenan memenangkan yang benar ke atas yang batil (dengan menyelamatkan Nabi Musa AS. bersama-sama pengikutnya menyeberangi Laut Merah).

3. Merupakan kesempatan untuk memberitahu kepada orang-orang Yahudi tentang adanya hubungan agama di antara syari`at Nabi Musa AS. dengan syari`at yang dibawa oleh Nabi Muhammad SAW., di samping adanya hubungan di antara umat Muhammad dengan umat-umat yang sebelumnya, terutamanya setelah adanya beberapa peristiwa yang menunjukkan mereka menolak ajaran Nabi SAW.

4. Dan yang utamanya ialah melatih kaum muslimin mengenai kewajipan berpuasa pada masa-masa tertentu yang dilakukan secara bersama. Sebab, puasa yang dijalankan oleh Nabi Muhammad SAW. pada hakikatnya adalah satu penerusan kepada puasa yang telah lama berjalan di kalangan orang-orang Makkah, tetapi tidak dalam bentuknya yang serentak dan bersama. Puasa yang dilakukan baginda ini sebagai langkah awal untuk menerima puasa Ramadan yang akan difardukan. Kerana itulah ketika puasa Ramadan difardukan maka puasa `Ashura' tidak diwajibkan lagi (Atiyyah Muhammad Salim, h. 13-14).

Puasa Ramadan:

Puasa Ramadan difarjukan pada 2hb. Sya`ban, tehun ke 2H. menerusi 4 ayat dari surah Al-Baqarah, iaitu ayat-ayat 183-187. Ayat-ayat ini tidak diturunkan serentak, malah ia diturunkan satu demi satu yang dipisahkan dengan jarak masa yang tertentu.

Keempat-empat ayat tersebut telah memberi penjelasan terperinci tentang masa, cara dan apa-apa tegahan semasa berpuasa. Ia tidak membiarkan baginda menjelaskannya, tidak seperti ibadat-ibadat lain yang memerlukan Hadis Amali dari baginda yang menjelaskan cara perlaksanaannya dengan betul.

Sebagai contohnya, ayat pertama menunjukkan hukum melakukan puasa yang difardukan ke atas orang-orang Islam, ia juga ke atas umat-umat lampau.

Pada peringkat ini, puasa orang-orang Islam tidak berbeza dengan cara berpuasa orang-orang Yahudi, iaitu selama 23 jam, bermula selepas seseorang itu sembahyang isha` atau selepas dia tidur sesudah waktu maghrib. Ia berterusan sehingga ka waktu jatuh matahari pada hari berikutnya.

Cara berpuasa pula di dalam bentuk pilihan, iaitu sesiapa yang tidak mahu berpuasa, maka dia boleh menggantikan hari dia berbuka itu dengan memberi makanan kepada seorang miskin bagi setip hari. Kedudukan ini berlanjutan sehingga turun ayat yang merobahnya, iaitu firmanNya yang bermaksud: ...sesiapa yang melihat anak bulan, maka hendaklah dia berpuasa. Dengan itu puasa Ramadan sudah bertukar corak, dari bentuk di mana orang-orang Islam diberikan pilihan sama ada berpuasa atau memberi makanan kepada orang miskin, kepada hukum berpuasa sahaja (tanpa pilihan) sepanjang-panjang bulan itu. Walaupun begitu masa berpuasa tetap seperti asalnya, iaitu bermula dari selepas sembahyang `Isha' atau selepas tidur sesudah waktu maghrib sehingga ke waktu jatuhnya matahari pada hari berikutnya. Kedudukan ini berlanjutan sehinggalah turunnya ayat yang berikutnya: ...diharuskan bagi kamu melakukan persetubuhan dengan isteri-isteri kamu pada malam bulan Ramadan dan firmanNya: ... makanlah dan minumlah sehingga jelas kepada kamu benang putih dari benang hitam menerusi cahayat matahari. Kedua-duanya menjelaskan kepada orang-orang Islam bahawa mereka diharuskan makan, minum dan bertamattu` dengan isteri-isteri mereka pada malam Ramadan. Mereka hanya dikehendaki menahan diri dari perkara-perkara tersebut dan lainnya yang membatalkan puasa bermula dari sejak naik fajar sehinggalah ke waktu jatuhnya matahari hari yang sama.

Dari pembentangan ini kita dapat melihat:

1. Puasa Ramadan berlangsung pada peringkat awalnya dalam kadar masa hampir sehari, iaitu selama hampir 23 jam.

2. Pada permulaannya orang-orang Islam diberi pilihan, sama ada mereka berpuasa atau berbuka, dan mereka dibenarkan menggantikannya dengan memberi makan kepada seorang miskin bagi setiap hari puasa yang mereka tinggalkan atau berbuka.

3. Kemudian, mereka diwajibkan berpuasa sahaja tanpa pilihan dengan kelamaan masa yang sama, seperti puasa Ahl Al-Kitab, iaitu dari waktu sesudah sembahyang `Isha' atau sesudah tidur selepas waktu maghrib sehingga ke waktu jatuhnya matahari pada hari berikutnya.

4. Kemudian, mereka dibenarkan berbuka (makan, minum dan bertamattu` dengan isteri) selepas waktu jatuhnya matahari sehinggalah ke waktu naik fajar siangnya.

Dari pendedahan ini kita dapati bahawa masa untuk berbuka puasa pada peringkat awalnya adalah sama dengan apa yang telah diamalkan oleh Ahl Al-Kitab ketika mereka berpuasa, iaitu bermula dengan jatuhnya matahari dan berakhir dengan: sama ada selepas orang yang berpuasa itu sembahyang `Isha' atau dengan berlangsungnya tidur sesudah jatuhnya matahari pada hari berkenaan sekalipun sebelum melakukan sembahyang `Isha'. Dengan itu, seseorang yang ingin melanjutkan masa berbukanya, dia akan melewatkan sembahynag Isha' dan tidak tidur selepas jatuhnya matahari.

Kedudukan tersebut memberi gambaran jelas kepada kita bahawa puasa Ramadan juga telah difardukan ke atas pengikut Ahl Al-Kitab sebelum Islam. Inilah pendapat sebahagian ulamak seperti Qatadah, al-Tabari dan al-Sudi. Dengan itu maksud firmanNya: .... seperti ia difardukan ke atas mereka sebelum kamu (Ahl Al-Kitab) pada beberapa hari tertentu ialah bulan Ramdan.

Begitulah, antara perkembangan yang berlaku dalam sejarah kefarduan puasa bulan Ramadan sehingga seperti yang kita lakukan pada hari ini. Dan begitu jugalah kedudukan amalan puasa di kalangan umat-umat lampau.



It is important to know the extent of an agent's authority because any act done by the agent within his authority will bind the principal. The agent's authority is classified into:

(a) Actual authority


(b) Apparent authority.

1. Actual Authority

(a) Express actual authority
Express actual authority is expressly given by the principal (orally or in writing) to the agent.

For example, T appoints S as his agent to purchase goods not exceeding RM10,000. In such case, S actual authority is to purchase goods on behalf of T, not exceeding RM10,000.

(b) Implied actual or usual authority
Implied actual authority is the proper or necessary authority given to the agent to execute the express authority. For example, T appoints S as his agent to sell T's car. S has implied authority to allow the purchaser to test drive the car.

Elements of Agency

1. Agency by Express Appointment
An agency by express appointment is created through verbal or written authorization by the principal to the agent. The principal gives express authority to the agent as stated in the first part of Section 140 of the Contracts Act, 1950. According to Section 140, “an authority is said to be express when it is given by words spoken or written.”

2. Agency by Implied Appointment
The second part of Section 140 of the Contracts Act 1950 provides for implied appointment of an agent. The appointment is implied when the authority can only be drawn from the circumstances of the case, which means things that were spoken or written, or act done by the parties in the ordinary course of dealing.

3. Agency by Ratification
Agency by ratification can arise if one of the situations below exists:
(a) when an agent exceeded his authority; or
(b) when a person is not an agent, but acted as if he has the authority to act as an agent.

In the event of the above, Section 149 of the Contracts Act 1950 provides that,

"where acts are done by one person on behalf of another but without his knowledge or authority, he may elect to ratify or to disown the acts."

If the principal accepts the contract, such acceptance is known as ratification. Ratification renders the principal liable to the contract, as if the agent has been authorised to do such act.

Ratification can be done expressly or impliedly as provided in Section 150 of the Contracts Act 1950. For example, A, without authority, buys goods for B. Afterwards B sells them to C on his own account. B conduct implies a ratification of the purchase made for him by A.

4. Agency by Necessity
Agency by necessity arises when there is an emergency situation and it becomes necessary for the agent to act to preserve the principal's property.

Section 142 of the Contracts Act 1950 provides that,

"an agent has authority, in an emergency, to do all such acts for the purpose of protecting his principal from loss as would be done by a person of ordinary prudence, in his own case, under similar circumstances."

For an agency by necessity to exist, the following conditions must be fulfilled.

(a) It is impossible for the agent to get the principal's instructions.
b) The agent acted to prevent the principal from incurring loss or damages.
(c) The agent acted in good faith for the interest of the principal.

Element Formation of Agency


Section 137 of the Contracts Act 1950 provides a requirement for a person to
become an agent. According to the provision,

"any person may become an agent, but no person who is not of the age of majority and of sound mind can become an agent, so as to be responsible to his principal."

For example, A hires B, who is 16 years old, to buy goods from C on his behalf. C supplies the goods to A through B, but B sells the goods for his benefit. A cannot deny his responsibility to C on the ground that B is a minor. A is still liable to C for the payment of the goods and A cannot claim damages from B.

Law of Agency

In Malaysia, the law of agency is governed by Part X of the Contracts Act 1950.
Section 135 of the Act defines

"a person employed to do any act for another or to represent another in dealings with third persons and a principal"

as the person for whom such act is done, or who is so represented. From the definition above, it can be said that the contract of agency is divided into two:

(a) A contract between the principal and agent, where the agent attains the authority to act for and on behalf of the principal;


(b) A contract between the principal and third party through an agent.
An agent can therefore make contracts with third parties that are binding on the

My Story V ; Leepang Palm Oil Mill

Leepang adalah gabungan nama ayah dan bapa Tan Sri Dato' Lee Shin Cheng, director IOI. Di Leepang Group terdapat beberapa ladang seperti;

1. Permodalan (Permodalan 1,2,3,4)
2. Leepang Estate (1,2,3,4,5)

jumlah keseluruhan kawasan ladang adalah lebih 12,000 Ha.

serta sebuah kilang bernama Leepang Palm Oil Mill berkapasiti 90 mt/hr.

Group Leepang ini bersebelahan dengan Group Morisem yang berkeluasan lebih 15,000 Ha. Kedua - dua Group ini berada di Sukau, Kinabatangan, Sabah.

Terdapat dua laluan utama ke group ini, melalui Jalan Jeroco dan melalui Jalan Sukau.

Kilang ini dibina pertengahan tahun 1990 an dengan kapasiti permulaan 40 mt/hr. Dibesarkan pada awal tahun 2000 menjadi 90 mt/hr.

Kebanyakan material adalah DxP dan semasa tahun 2006, majoriti ladang berada dalam peringkat 10 - 15 tahun.

Ladang Permodalan asalnya ditanam dengan koko, diganti dengan sawit apabila IOI mengambilalih. Masih terdapat saki baki bangunan tempat proses koko.

Melihat pada kedudukannya di Sukau, kawasan ini amat subur. Bersebelahan dengan muara Sungai Kinabatangan, sungai kedua terpanjang di Malaysia.

Ladangan ini merupakan penghujung kepada banyak ladang yang terdapat di sepanjang Jalan Sukau.

Jika melalui Jalan Sukau, penghujungnya adalah Kg. Sukau. Terdapat sebuah feri yang menjadi penghubung ke ladang tersebut.

Semasa aku mengambil alih kilang ini, prestasi OER paling tinggi antara banyak kilang IOI di Sabah. Terima kasih pada ladang yang menghantar loose fruit dari range 5 hingga 8%.

Disebabkang berusia lebih 20 tahun, kebanyakan pekerja sudah memasuki generasi kedua. Driver, Pak Cik Lajuneda sudah lebih 15 tahun bekerja di kilang. Anak dan menantunya juga bekerja di sini. Cucunya sudah berumur 10 tahun.

Di komplek ini terdapat klinik, tadika dan juga sekolah rendah.

Disebabkan berada di hujung Sungai Kibatangan, walaupun berjumlah hampir 30, ooo Ha, namun Group ini (Morisem, Leepang dan Permodalan) menjadi kawasan private sepenuhnya. Tiada laluan ke mana - mana kampung serta penempatan.

Terdapat sebuah jeti kecil tempat loading CPO untuk dihantar ke Sandakan atau terus ke Kapal untuk dihantar ke Eropah.

250 meter dari Kilang, terletak LESC (Leepang Executive and Staff Club). Asalnya dilengkapi dengan kemudahan padang golf, bangunan serta tempat rekreasi. Sekelilingnya dipenuhi dengan pokok hutan dan kolam air kilang.

Padang golf ditanam pokok sawit beberapa tahun selepas kilang dibina.

Secebis hutan yang ada ini merupakan tempat yang amat cantik. Burung kenyalang boleh dilihat hinggap dan singgah di sini sewaktu petang.

Leepang, banyak cerita menarik di sini, sama seperti menariknya tempat ini.

My Story IV ; Transfer

Transfer Ke Leepang Palm Oil Mill

Pada September 2006, kami mendapat berita mengenai notis penamatan perkhidmatan mengejut daripada Azhar, Incharge LPOM. Kenapa beliau berhenti, tidak akan dibincangkan di blog ini.

Seperti biasa, syarikat ini akan kelam kabut untuk mencari pengganti. Masalah kekurangan engineer sudah sekian lama tidak diselesaikan dan kini ditambah lagi dengan isu baru. Lalu keluarlah nama – nama assistant yang bakal menggantikan beliau. Saya bukanlah berada di dalam list tersebut.

Orang yang sepatutnya dipindahkan ke sana adalah assistant dari Syarimo POM. Kerana mengikut seniority, beliau adalah assistant yang paling lama berkhidmat di syarikat ini. Orang kedua adalah Aznol, rakan yang lebih senior daripada saya di kilang yang sama. Namun, pelbagai spekulasi serta persepsi yang bermain di peringkat atasan, beliau dikekalkan di kilang tersebut.

Pengurus pada masa itu, Allahyarham Ahmad Ellias, bagi saya adalah orang pertama yang mengesyorkan nama saya untuk dihantar ke Leepang POM. Ditambah dengan sokongan pengurus yang lepas bersama saya seperti Suresh dan Tahang, saya secara kelam kabut telah diarahkan untuk take over daripada Azhar pada awal September 2006.

Saya simpulkan beberapa factor yang menjadi pemilihan nama saya seperti sokongan daripada Allahyarham Ahmad Elias, Suresh, Tahang dan juga GM Ong See Boon. Kepercayaan mereka melalui pemerhatian terhadap inisiatif saya serta disebabkan kerana tidak ada pilihan lain.

Bermulalah era baru di dalam kerjaya saya sebagai Assistant Engineer Incharge Leepang POM dengan keupayaan 90 mt/hr serta memproses lebih 350,000 FFB setiap tahun. Pada awalnya, semasa saya ditugaskan di sana, saya hanya akan menjadi assistant sementara waktu menunggu untuk pengurus baru yang akan dicari. Sepanjang sebulan pertama, saya berulang – alik dari Leepang ke Morisem kerana dikatakan sementara waktu.

Namun, mungkin rezeki menyebelahi saya, bulan kedua saya telah disuruh untuk terus berada di sana kerana tidak ada pengurus baru akan menyertai syarikat terkemuka ini. Pada akhir November 2006, setelah 2 bulan menjadi pengganti sementara, saya mendapat surat pemindahan dari GM OSB dengan alaun Incharge RM600. Ditambah dengan gaji pokok saya sebanyak RM2200 menjadikan RM2800, ditugaskan untuk menguruskan sebuah kilang berkapasiti tinggi dan antara kilang yang paling banyak memproses FFB di syarikat ini.

Saturday, 30 July 2011

My Story III ; Richard Ginsin

Richard berdiri di tengah
Semasa aku sampai ke Morisem Palm Oil Mill 'B', berikut adalah pihak pengurusan kilang

Manager ; Mr Murugan Suresh
AM ; Edmund Norbert dan Aznol Kamal Hasan. Seorang jurutera telah menghantar notis berhenti. Kehadiran aku sebagai kadet untuk menggantikan jawatan beliau.

Production Executive ; Richard Ginsin
Technical Executive ; Maniam

Dari Mac hingga pertengahan Julai 2004. Dalam tempoh tiga bulan tersebut, aku dilatih oleh Mr Suresh, mendapat pendedahan awal dari rakan - rakan seperti Richard Ginsin dan lain lain.

Richard Ginsin; Seorang rakan dan juga sahabat.

Richard berasal dari Kota Belud, Sabah. Sudah berkahwin dan baru menimang anak yang pertama semasa aku sampai ke sana. Namun, keluarganya tidak tinggal bersama. Berjauhan dari Morisem, Sukau dan Kota Belud.

Disebabkan itu, aku disuruh tinggal bersama dengan beliau. Walaupun dia beragama Kristian, sikap toleransi yang ditunjukkan oleh beliau amat tinggi. Ini antara keistimewaan orang Sabah! Ramai juga di kalangan keluarga beliau yang sudah memeluk agama Islam. Faktor ini menyebabkan beliau tidak kekok malah mengalu - alukan kehadiran aku ke rumahnya.

Richard mempunyai pengalaman yang hebat. Memulakan kerjaya di Morisem (ladang IOI yang pertama) sejak 1990, dan berpindah ke Morisem Palm Oil Mill 'A' apabilan kilang tersebut dibina pada awal tahun 1990 an.

Beliau merekod banyak sejarah awal permulaan IOI sebelum menjadi terkenal hari ini. Pada tahun 1998, beliau dipindahkan ke Leepang Palm Oil Mill dengan tujuan supaya beliau diberhentikan. Kerana masalah peribadi yang tidak dapat dikikis.

Mr Suresh pernah berkata,
"Jika orang boleh melatih seekor harimau yang liar dari hutan menjadi jinak dan dapat dilatih untuk pertunjukan sarkas, kenapa pula manusia yang ada akal tidak dapat dilatih menjadi lebih hebat.

Walaupun seteruk mana manusia tersebut."

Atas dasar itu, Mr Suresh memberikan tekanan yang cukup hebat kepada beliau. Dan akhirnya, beliau menjadi sangat hebat.

Apabila kilang Morisem POM B dibina, beliau antara orang pertama yang sampai ke kilang tersebut. Terlibat dalam proses pembinaan dan commissioning hingga berjalan lancar.

Richard, rakan kerja semasa di kilang, rakan baik semasa di rumah.
Dalam tempoh yang singkat, tidak sampai tiga bulan, kami menjadi amat rapat.

Seawal 0630 pagi, kami sudah bertolak ke kilang.

Selewat pukul 1100 malam kami balik ke rumah.

Balik ke rumah, kami meluangkan masa beberapa jam menonton TV bercerita dari hati ke hati.

Beliau banyak memberikan dorongan.

Kata beliau,

"Jika kamu ingin maju dalam industri ini, buatlah yang terbaik. Jangan separuh atau ala kadar.

Jika kamu tidak minat, jangan buang masa, berhenti dan cari kerja dalam industri lain.

Jika kamu ingin kekal dalam industri ini, teruskan dan jangan main - main. Sudah berapa ramai saya jumpa jurutera yang membuang masa, kemudian berhenti daripada industri sawit.

Industri rugi, dia rugi, syarikat rugi."

Kata beliau lagi,

Saya sudah hampir 15 tahun bekerja di IOI. Jika saya berhenti, saya tidak akan masuk ke industri ini lagi.

Sangat terharu apabila tiba saat beliau menceritakan perihal anaknya yang kecil, namun terpaksa berjauhan kerana kerja.

Tidak kurang juga pelbagai pengalaman, nasihat, motivasi, cerita serta pengamalan beliau kongsi dengan saya.

Saya cukup terpegun apabila beliau bercerita keindahan Kundasang, Gunung Kinabalu, Tuaran, Kota Belud dan perihal negeri Sabah yang pada waktu itu cukup asing buat saya.


My Story 2 - Life In Palm Oil Industry

Catitan ini saya tujukan khas buat rakan yang bertanyakan saya.. bagaimana kehidupan seorang jurutera / manager di kilang sawit?

Ceritanya bermula begini....
1. Dari Subang Jaya Ke Lahad Datu
Sebelum saya memulakan karier sebegai seorang kadet jurutera di sebuah syarikat di Sabah, saya telah bekerja di beberapa tempat dan di dalam industri yang berlainan. Sebagai sale engineer di sebuah syarikat yang baru ditubuhkan di Kelantan, sebagai production executive di kilang besi di Pulau Pinang dan sebagai process engineer di kilang pembuatan di Selangor.
Pada pertengahan Feb'04, saya telah dipanggil semula oleh GM (AK Lee) dan ditanya samada masih berminat untuk bekerja di kilang sawit di Sabah. Saya terus menjawab 'YA'. Pada waktu itu, kawan sekampung, sama belajar di USM juga bekerja disyarikat yang sama di Baturong, Tawau. Saya terus mendapatkan maklumat berhubung kerja dan sebagainya.
Kekasih (Sekarang Isteri) juga menjadi tempat untuk saya berbincang.Walaupun beliau berasal dari Sabah, kami telah bersepakat untuk untuk setuju dengan pilihan saya, walau apapun yang saya putuskan. Selang beberapa hari, saya telah pulang ke Tebing Tinggi, berbincang dengan mek dan ayah, mengenai keputusan saya untuk ke Sabah.
Terus terang saya katakan, saya tidak ada apa - apa idea maklumat mengenai industri sawit negara semasa saya menerima tawaran tersebut ! Ia adalah perkara di dalam hidup saya sebagaimana barunya Sabah dalam catitan hidup saya.
2. Tempat Yang Asing
Semasa ditanya oleh bos tempat lama, apa yang istimewa tempat baru.. saya tidak dapat menjawab dengan pasti. Apa yang pasti, saya telah membuat pilihan untuk memilih jalan ini disebabkan oleh sifat saya yang suka mencuba.
Dengan pelbagai teori dan persepsi mengenai negeri Sabah yang saya dengar sebelum mejejaki kaki ke sana dan di tambah dengan tempat yang amat asing, saya telah menjejaki kaki di Lapangan Terbang Lahad Datu pada 15hb. Mac 2004. Disambut oleh pakcik driver, Lajuneda. Perjalanan dari Lahad Datu ke Kilang Morisem 'B' melalui Jalan Jeroco memakan masa lebih kurang 2 - 3 jam. Dengan laluan 70 km jalan gravel, saya dua tiga kali tertidur keletihan dan terjaga akibat terhempap muka di cermin kereta.
Sepanjang perjalanan, saya berfikir panjang..adakah ini tempat kerja yang bakal aku lalui? Apabila sampai di pejabat, saya disambut oleh Mr. Suresh, Pengurus Kilang. Soalan pertama, macam mana jalan Jeroco? Pandai tak memasak? berapa lama kamu nak kerja di sini? selang beberapa minit, dia menyambut panggilan dari GM. Dengan nada selamba, beliau berkata, kita tengok sampai berapa lama dia boleh tahan di sini.
3. Housemate Richard Ginsin
Namun saya amat bertuah kerana disuruh untuk tinggal bersama Production Executive, Richard Ginsin, kadazan berasal dari Kota Belud. Berkelulusan diploma pertanian, memulakan kerjaya di ladang sawit, sebelum menjadi penyelia di kilang sawit Morisem 'A'. Antara anak didik Mr Suresh yang menjadi kebanggaannya.

Morisem Palm Oil Mill ‘B’

Kilang ini telah memulakan operasi sejak July 2003. Apabila saya menyertai syarikat selepas menyambut hari lahir ke 25. Saya sampai ke Lahad Datu pada 15hb. Mar 2004, mula bekerja 16hb. Mac dan hari lahir saya pada 17hb. Mac. Berikutnya, 22hb. Mac 2004 merupakan pilihanraya umun ke 11. Sepatutnya saya menunaikan tanggungjawab sebagai pengundi untuk pertama kali pada tarikh tersebut.

Kilang ini dikatakan kilang sawit paling besar di dunia dengan keupayaan 150 mt/hr. Mengikut pengalaman kami, kami telah mengoperasikan kilang tersebut pada kapasiti 120 mt/hr. Namun, disebabkan lesen yang dibenarkan hanya 105 mt/hr, keupayaan maksimun itu tidak dapat dijalankan. Pada waktu yang sama, jumlah FFB yang diterima tidak cukup untuk menjalankan pada tahap maksimum.

My Story

I was born on 17th March 1979 in Pengkalan Chepa, Kelantan.

1. Parent
1.1 Mother : Che Saniah Bt Che Muhammad (22nd April 1945)
1.2 Father : Muhammad B Awang (3rd July 1939)

1.3 Wife's Mother : Faridah Binti Malahan
1.4 Wife's Father : Noortaip Binti Suhaili

2. Wife and Family
2.1 Sunarty Binti Noortaip (15th December 1981)
2.2 1st Daughter Nur Aisyah Umairah (3rd April 2006, 9 mlm, 3.29 kg, SMC)
2.3 2nd Son Alif Zunnur (23rd May 2009, 1223pm, 3.3 kg,SMC)

3. No.6th from 10 siblings.
3.1 Abdul Aziz (1969) Tokey Tebing Tinggi
Wife (Kak Mi), Noraihan, Syed Mohammad Ubaidah
3.2 Allahyarham Luqman (1971)
3.3 Latifah (13th May 1973) Tokey Kemumin
Husband (Abd. Rahim),
Mujahid, Ainul Bakti, Mohd. Abrar, Mustaqim, Nor Amalina, Mohd. Nabil, Mohd. Nafis
3.4 Zaleha (12th October 1975) Cikgu
Husband (Solahuddin)
Nabila, Nawal
3.5 Hamzah (2nd February 1977) Tokey Tanah Merah
Wife (Kak Ni)
Widax, Khairul Bariah, Wafii
3.6 Zulkefli (17th March 1979 - me) Kuli make gaji
Wife (Sunarty)
Nur Aisyah Umairah, Alif Zunnur
3.7 Hafsah (12th June 1982) Housewife
Husband (Mazlan)
Mohd. Danial
3.8 Noorjaezah (16th February 1986) Student
3.9 Hashim (10th February 1987) Student -bercuti @ tanam anggur
3.10 Mohd. Najaee (21st July 1990) Student

4. Education History
4.1 Sek. Keb Sabak (1985 - 1990)
4.2 Sek. Men. Pengkalan Chepa (1991-1994)
4.3 MRSM Kuala Terengganu (1995-1996)
LDP, Pengakap,Kelab Kembara
4.4 Matrikulasi USM (1997-1998)
4.5 Universiti Sains Malaysia (1999 - 2002)
First Degree in Mechanical Engineering - Engineering Campus (Tronoh & Nibong Tebal)
Join PALAPES TD 2002 (Guntorian), Persatuan Mahasiswa Islam

4.6 Diploma In Palm Oil Milling Technology & Management 2007 - MPOB
PLASMA Lahad Datu, Sabah.

5. Career History
5.1 Tashin Steel, Seberang Prai, Penang, Production Engineer (2003)
Steel Manufacturer

5.2 Tras Nezam SB, Kota Bharu, Kelantan, Sales Engineer (2003)
Engineering Spare Parts Supplier

5.3 Memory Tech SB, Subang Jaya, Selangor. Production Engineer (2004)
CD,DVD and Memory Manufacturer

5.4 IOI Corporation Berhad
Plantation Group, Based at Lahad Datu Regional Office
5.4.1 Morisem POM (2004-2006), 150 Mt/Hr Capacity
Position : Assistant Engineer
5.4.2 Leepang POM (2006-2008), 90 Mt/Hr Capacity
Position : Mill Manager

5.5 Boustead Estates Agency SB
5.5.1 Loagan Bunut POM, 45 Mt/Hr Based at Miri, Sarawak.
Position : Mill Manager/Engineer - (2008-Present)

6. Member / Certification
6.1 Board of Engineer Malaysia (Since 2004)
6.2 First Grade Steam Engineer, DOSH (July 2008)

7. Target for 10 years (2008 - 2018) Jika dipanjangkan umur
7.1 Professional Engineer (Ir - Year 2010)
7.2 First Grade Internal Combustion Engine (Year 2012)
7.3 Haji & Umrah (Before Year 2013)
7.4 House and Car (Before Year 2011)

Friday, 29 July 2011

Wage Payment Systems

Wage Payment Systems are the different methods adopted by organizations by which they remunerating labour. There exist several systems of employee wage payment and incentives, which can be classified under the following heads :

* Time Rate Systems
o Time Rate System: Under this system, the worker is paid by the hour, day, week, or month.
o High Wage plan: Under this plan a worker is paid a wage rate which is substantially higher than the rate prevailing in the area or in the industry. In return, he is expected to maintain a very high level of performance, both quantitative and qualitative.
o Measured day work : According to this method the hourly rate of the time worker consists of two parts viz, fixed and variable. The fixed element is based on the nature of the job i.e. the rate for this part is fixed on the basis of job requirements. The variable portion varies for each worker depending upon his merit rating and the cost-of-living index.
o Differential time rate : According to this method, different hourly rates are fixed for different levels of efficiency.

* Payment by Results
o Piece Work
+ Straight piecework system : The wages of the worker depend upon his output and rate of each unit of output; it is in fact independent of the time taken by him.
+ Differential piece work system: This system provide for higher rewards to more efficient workers. For different levels of output below and above the standard, different piece rates are applicable.
# Taylor Differential Piece Work System
# Merrick Differential Piece Rate System

o Combination of Time and Piece Work
+ Gantt task and bonus system: the system consists of paying a worker on time basis if he does not attain the standard and on piece basis(high rate) if he does.
+ Emerson’s efficiency system: Under this system minimum time wages are guaranteed. But beyond a certain efficiency level, bonus in addition to minimum day wages is given.

Mistake of Bonus System

Mistake #1: Equity is not a form of bonus
Many business owners often use 'equity' and 'bonus' as interchangeable terms. They want to reward their people for doing a good job, but aren't sure exactly what they want to do for them.

Equity is a share of the company, and brings with it shareholder liabilities. Most people don't want equity in their employer's business, but they do want a bonus for good performance. Bonus payments are paid out of profit and based on degree of performance.

Mistake # 2: Most bonus systems are not based on forecasts
If you don't know what your sales, margin and profit expectations are, how can you determine what amount you will allocate towards bonus payments?

Mistake # 3: Most bonus systems don't include the company's performance as well as individual performance
If the company doesn't perform according to plan (refer Mistake # 2 about forecasts...) then there won't be much excess for a bonus pool. If employees are offered bonus rewards that are contingent only upon their own performance and not the company's, there may not necessarily be excess funds in the company at the end of the year to pay individual bonuses.

Mistake # 4: Bonus systems are put in place without a process to assess individual performance
So many business owners make bonus payments on an ad hoc arbitrary basis, often to individuals who don't necessarily deserve the bonus. Without having a system in place to assess everyone's performance in a consistent and fair way, there is no way to accurately determine appropriate bonus payments.

Mistake # 5: Because of Mistakes 1-4, most bonus systems are not clearly understood by everyone in the company.
If people are unaware of potential bonus rewards, and don't take the system seriously, there is no point in having it.

Mistake # 6: Most business owners fail to implement a structured bonus system
If there's no structure and no guidelines, it won't work because it'll all be too hard. In order to act as an incentive, a bonus system must be well communicated, well thought through and well managed.

Thursday, 28 July 2011

Marketing Accountability Standards Board (MASB)

The Marketing Accountability Foundation[1] and its Marketing Accountability Standards Board (MASB) is the independent, private sector, self-governing body of academics and practitioners authorized by its membership constituency to establish marketing measurement and accountability standards across industry and domain, for continuous improvement in financial performance and for the guidance and education of business decision makers and users of performance and financial information.[2]


Establishment of MASB was recommended by The Boardroom Project (2004–2007)[3] in response to growing demand for marketing accountability. A group of practitioners and academics saw an opportunity to increase the contribution of the marketing function, through the development of standard metrics and processes that link marketing activities more objectively and more closely to the financial performance of the firm.[4]

Over a three-year period, The Boardroom Project conducted a comprehensive review of current practices, needs and accountability initiatives underway, reaching the following conclusions:

  1. Marketing has been relegated to the “default” category (control costs) because it lacks metrics that reliably tie activities and costs to financial return
  2. While issues surrounding metrics and accountability are not being ignored, practices and initiatives underway are narrow in focus, lacking integration and generally not tied to financial return in predictable ways
  3. Measurement standards are essential for the efficient and effective functioning of a marketing-driven business because decisions about allocation of resources and assessment of results rely heavily on credible, valid, transparent and understandable information
  4. Standards across industry and domain as well as a transparent process by which to develop and select the metrics will be necessary to emerge from the current situation
  5. As was true for manufacturing & product quality with ISO & ANSI and for accounting & financial reporting with FASB & IASB, there is need for an industry-level “authority” to establish the standards and to ensure relevancy over time.
  6. The development of generally accepted and common standards for measurement and measurement processes will significantly enhance the credibility of the marketing discipline, improve the effectiveness & efficiency of marketing activities, guide continuous improvement over time, and enable Marketing to move from discretionary business expense to board-level strategic investment

MASB Mission

The Mission of MASB is to “Establish marketing measurement and accountability standards across industry and domain for continuous improvement in financial performance and for the guidance and education of business decision makers and users of performance and financial information.”

Role of MASB

MASB sets the standards and processes necessary for evaluating marketing measurement in a manner that ensures credibility, validity, transparency and understanding.

MASB does not endorse specific measures. Rather, it documents, reveals and highlights how various measures stack up against the Marketing Metric Audit Protocol (MMAP). The belief and assumption is that the market will select specific measures based on these evaluations. MASB’s Dynamic Marketing Metrics Catalogue will be the primary vehicle for documentation and publication.

MASB also exemplifies how to evaluate and identify ideal measures according to MMAP for specific marketing activities such as TV and On-Line advertising and/or any other activity or area for which there is need as identified by its membership constituency.

MASB delves into practices underlying the development and management of ideal measures as well as those practices utilized to create knowledge, determine causality, and apply to process management for improved return.

Overall, MASB serves at the industry level in this fashion and works with “open due process”.

Precepts of Conduct

MASB Directors operate according to the following precepts of conduct:

* Be open and objective in decision making
* Weigh carefully the needs and views of constituency
* Promulgate standards when:
o Logical flow of the argument is tight
o Empirical support material is convincing
o Conclusions are managerially meaningful
o Scientific evidence pros and cons are acknowledged
o Benefits exceed costs
* Ensure transparency of the standards setting activity through open due process
* Bring about needed change while minimizing disruption
* Review effects of past decisions (interpret, amend, replace) [6]

MASB Projects

Work of the MASB is conducted on a Project basis and organized into three overall categories: Standards, Research and Concepts.

Prioritization is based on the following considerations:

* Pervasiveness of the Issue
* Alternative Solutions
* Technical Feasibility
* Practical Consequences
* Convergence Possibilities
* Cooperative Opportunities
* Resources

Projects on the MASB Agenda were recommended by MASB Charter Members, influenced in part by feedback from C Level interviews. They have been prioritized according to MASB resources:

Projects Completed

Marketing Productivity, Effectiveness and Accountability
Objectives of Marketing Standards
The Role of Standards: Academic Review
C Level Views on Marketing Accountability

Projects Ready for Industry Feedback

Marketing Metrics Audit Protocol
Measuring TV According to MMAP – An Example
Practices Underlying an Ideal Metric

Projects Underway

Measuring & Improving the Long-Term Impact
Common Language for Marketing Activities & Metrics on Wikipedia
Marketing Metrics Profiled to MMAP
Measuring & Improving Return from Interactive
Measuring & Improving CPG Return With CLV
FASB/MASB Partnership for Aligning GAAP/MMAP

Brand Investment Model and Discipline

[edit] Marketing Metric Audit Protocol (MMAP)
Marketing Metric Audit Protocol (MMAP)

The Marketing Metric Audit Protocol (MMAP) is a formal process for connecting marketing activities to the financial performance of the firm.[5]

The process includes the conceptual linking of marketing activities to intermediate marketing outcome metrics to cash flow drivers of the business, as well as the validation and causality characteristics of an ideal metric. Cash flow both short-term and over time is the ultimate metric to which all activities of a business enterprise, including marketing, should be causally linked through the validation of intermediate marketing measures.

The process of validating the intermediate outcome measures against short-term and/or long-term cash flow drivers is necessary to facilitate forecasting and improvement in return.

See Marketing Metric Audit Protocol and Measuring TV According to MMAP – An Example. [16]
[edit] MMAP Metric Profiles

MMAP Metric Profiles is a Catalogue of Marketing Metrics that provides detailed documentation regarding the psychometric properties of the measures and specific information with respect to reliability, validity, range of use, sensitivity . . . particularly in terms of validity and sensitivity with respect to financial criteria.

Most commercial providers offer little detail about their measures. Most of the publicly available information focuses on integrated suites of products and services with little technical information or reference to characteristics of specific measures that would allow profiling according to MMAP.

The Metrics Catalogue is provided on the MASB website as metric providers undergo the audit and their offerings are profiled according to MMAP.[16]
[edit] Marketing Accountability Foundation

The Marketing Accountability Foundation (MAF)[1] is the independent, private sector, self-governing organization authorized by its membership constituency to:

* Establish & improve marketing measurement & accountability standards
* Educate constituents about those standards
* Provide oversight, administration & funding for its standards-setting Board (MASB) and its Advisory Council (MASAC)
* Select Directors of the MASB and MASAC
* Protect the independence & integrity of the standards-setting process

The Foundation is incorporated exclusively for charitable, educational, scientific, & literary purposes within the meaning of Section 501(c) (3) of the Internal Revenue Code.

Sources of funding include Membership Dues, Projects, Workshops, Technical Services, Publications, and Training, Advisory & Auditing Services.
[edit] Membership

Membership is organization-based, and open to Marketers, Business Schools, Measurement (Modeling & Software) Providers, Media Providers, Media & Advertising Agencies, Industry Associations & Independent Consultants. Membership development has been targeted to fill the Foundation Trustee, MASB Director, Advisor and Project Leadership positions.

Founding and Charter Members in order of joining include: University of California Riverside, The MMAP Center, Starcom MediaVest Group, The Nielsen Company, The Advertising Research Foundation (ARF), Marketing Science Institute (MSI), UCLA Anderson School of Management, Columbia University, MarketShare Partners, ConAgra Foods, University of Michigan, American Marketing Association (AMA), Association of National Advertisers (ANA) , Kimberly-Clark, Foresight ROI, Blue Marble Enterprises, Mobile Marketing Association (MMA), The Wharton School, NYU Stern School of Business, CoreBrand, The Coca-Cola Company, Darden School of Business, University of Cologne, LogicLab. click here.[17][5]

International Accounting Standards

International Financial Reporting Standards (IFRS) are principles-based Standards, Interpretations and the Framework (1989)[1] adopted by the International Accounting Standards Board (IASB).

Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). IAS were issued between 1973 and 2001 by the Board of the International Accounting Standards Committee (IASC). On 1 April 2001, the new IASB took over from the IASC the responsibility for setting International Accounting Standards. During its first meeting the new Board adopted existing IAS and SICs. The IASB has continued to develop standards calling the new standards IFRS.

Structure of IFRS

IFRS are considered a "principles based" set of standards in that they establish broad rules as well as dictating specific treatments.

International Financial Reporting Standards comprise:

* International Financial Reporting Standards (IFRS)—standards issued after 2001
* International Accounting Standards (IAS)—standards issued before 2001
* Interpretations originated from the International Financial Reporting Interpretations Committee (IFRIC)—issued after 2001
* Standing Interpretations Committee (SIC)—issued before 2001
* Conceptual Framework for the Preparation and Presentation of Financial Statements (2010)

IAS 8 Par. 11

"In making the judgement described in paragraph 10, management shall refer to, and consider the applicability of, the following sources in descending order:

(a) the requirements and guidance in Standards and Interpretations dealing with similar and related issues; and

(b) the definitions, recognition criteria and measurement concepts for assets, liabilities, income and expenses in the Framework."


The Framework for the Preparation and Presentation of Financial Statements states basic principles for IFRS.

The IASB and FASB Frameworks are in the process of being updated and converged. The Joint Conceptual Framework project aims to update and refine the existing concepts to reflect the changes in markets, business practices and the economic environment that have occurred in the two or more decades since the concepts were first developed.

Its overall objective is to create a sound foundation for future accounting standards that are principles-based, internally consistent and internationally converged. Therefore the IASB and the US FASB (the boards) are undertaking the project jointly.
[edit] Role of Framework

Deloitte states:

In the absence of a Standard or an Interpretation that specifically applies to a transaction, management must use its judgement in developing and applying an accounting policy that results in information that is relevant and reliable. In making that judgement, IAS 8.11 requires management to consider the definitions, recognition criteria, and measurement concepts for assets, liabilities, income, and expenses in the Framework. This elevation of the importance of the Framework was added in the 2003 revisions to IAS 8.[2]

[edit] Objective of financial statements

A financial statement should reflect true and fair view of the business affairs of the organization. As these statements are used by various constituents of the society / regulators, they need to reflect true view of the financial position of the organization. and it is very helpful to check the financial position of the business for a specific period.
[edit] Underlying assumptions

IFRS authorize two basic accounting models:

I. Financial capital maintenance in nominal monetary units, i.e., Historical cost accounting during low inflation and deflation (see the Framework, Par 104 (a)).

II. Financial capital maintenance in units of constant purchasing power, i.e., Constant Item Purchasing Power Accounting - CIPPA - during low inflation and deflation (see the Framework, Par 104 (a)) and Constant Purchasing Power Accounting (see IAS 29) - CPPA - during hyperinflation. Financial capital maintenance in units of constant purchasing power is not authorized under US GAAP.

The following are the four underlying assumptions in IFRS:

* 1. Accrual basis: the effect of transactions and other events are recognized when they occur, not as cash is gained or paid.
* 2. Going concern: an entity will continue for the foreseeable future.
* 3. Stable measuring unit assumption: financial capital maintenance in nominal monetary units or traditional Historical cost accounting; i.e., accountants consider changes in the purchasing power of the functional currency up to but excluding 26% per annum for three years in a row (which would be 100% cumulative inflation over three years or hyperinflation as defined in IFRS) as immaterial or not sufficiently important for them to choose financial capital maintenance in units of constant purchasing power during low inflation and deflation as authorized in IFRS in the Framework, Par 104 (a).

Accountants implementing the stable measuring unit assumption (traditional Historical Cost Accounting) during annual inflation of 25% for 3 years in a row would destroy 100% of the real value of all constant real value non-monetary items not maintained under the Historical Cost paradigm.

* 4. Units of constant purchasing power: financial capital maintenance in units of constant purchasing power during low inflation and deflation; i.e. the rejection of the stable measuring unit assumption. See The Framework (1989), Paragraph 104 (a). Measurement in units of constant purchasing power (inflation-adjustment) under Constant Item Purchasing Power Accounting of only constant real value non-monetary items (not variable items) remedies the destruction caused by Historical Cost Accounting of the real values of constant real value non-monetary items never maintained constant as a result of the implementation of the stable measuring unit assumption during low inflation. It is not inflation doing the destroying. It is the implementation of the stable measuring unit assumption, i.e., HCA. Only constant real value non-monetary items are inflation-adjusted during low inflation and deflation. All non-monetary items (both variable real value non-monetary items and constant real value non-monetary items) are inflation-adjusted during hyperinflation as required in IAS 29 Financial Reporting in Hyperinflationary Economies, i.e. under Constant Purchasing Power Accounting.

[edit] Qualitative characteristics of financial statements

Qualitative characteristics of financial statements include:

* Understandability
* Reliability
* Comparability
* Relevance
* True and Fair View/Fair Presentation

[edit] Elements of financial statements

The financial position of an enterprise is primarily provided in the Statement of Financial Position. The elements include:

1. Asset: An asset is a resource controlled by the enterprise as a result of past events from which future economic benefits are expected to flow to the enterprise.
2. Liability: A liability is a present obligation of the enterprise arising from the past events, the settlement of which is expected to result in an outflow from the enterprise' resources, i.e., assets.
3. Equity: Equity is the residual interest in the assets of the enterprise after deducting all the liabilities under the Historical Cost Accounting model. Equity is also known as owner's equity. Under the units of constant purchasing power model equity is the constant real value of shareholders´ equity.

The financial performance of an enterprise is primarily provided in an income statement or profit and loss account. The elements of an income statement or the elements that measure the financial performance are as follows:

1. Revenues: increases in economic benefit during an accounting period in the form of inflows or enhancements of assets, or decrease of liabilities that result in increases in equity. However, it does not include the contributions made by the equity participants, i.e., proprietor, partners and shareholders.
2. Expenses: decreases in economic benefits during an accounting period in the form of outflows, or depletions of assets or incurrences of liabilities that result in decreases in equity.

Revenues and expenses are measured in nominal monetary units under the Historical Cost Accounting model and in units of constant purchasing power (inflation-adjusted) under the Units of Constant Purchasing Power model.
[edit] Recognition of elements of financial statements

An item is recognized in the financial statements when:

* it is probable future economic benefit will flow to or from an entity.
* the resource can be reliably measured - otherwise the stable measuring unit assumption is applied under the Historicald Cost Accounting model: i.e. it is assumed that the monetary unit of account (the functional currency) is perfectly stable (zero inflation or deflation); it is simply assumed that there is no inflation or deflation ever, and items are stated at their original nominal Historical Cost from any prior date: 1 month, 1 year, 10 or 100 or 200 or more years before; i.e. the stable measuring unit assumption is applied to items such as issued share capital, retained earnings, capital reserves, all other items in shareholders´ equity, all items in the Statement of Comprehensive Income (except salaries, wages, rentals, etc., which are inflation-adjusted annually), etc.

Under the Units of Constant Purchasing Power model, all constant real value non-monetary items are inflation-adjusted during low inflation and deflation; i.e. all items in the Statement of Comprehensive Income, all items in shareholders´ equity, Accounts Receivables, Accounts Payables, all non-monetary payables, all non-monetary receivables, provisions, etc.
[edit] Measurement of the Elements of Financial Statements

Par. 99. Measurement is the process of determining the monetary amounts at which the elements of the financial statements are to be recognized and carried in the balance sheet and income statement. This involves the selection of the particular basis of measurement.

Par. 100. A number of different measurement bases are employed to different degrees and in varying combinations in financial statements. They include the following:

(a) Historical cost. Assets are recorded at the amount of cash or cash equivalents paid or the fair value of the consideration given to acquire them at the time of their acquisition. Liabilities are recorded at the amount of proceeds received in exchange for the obligation, or in some circumstances (for example, income taxes), at the amounts of cash or cash equivalents expected to be paid to satisfy the liability in the normal course of business.

(b) Current cost. Assets are carried at the amount of cash or cash equivalents that would have to be paid if the same or an equivalent asset was acquired currently. Liabilities are carried at the undiscounted amount of cash or cash equivalents that would be required to settle the obligation currently.

(c) Realisable (settlement) value. Assets are carried at the amount of cash or cash equivalents that could currently be obtained by selling the asset in an orderly disposal. Assets are carried at the present discounted value of the future net cash inflows that the item is expected to generate in the normal course of business. Liabilities are carried at the present discounted value of the future net cash outflows that are expected to be required to settle the liabilities in the normal course of business.

Par. 101. The measurement basis most commonly adopted by entities in preparing their financial statements is historical cost. This is usually combined with other measurement bases. For example, inventories are usually carried at the lower of cost and net realisable value, marketable securities may be carried at market value and pension liabilities are carried at their present value. Furthermore, some entities use the current cost basis as a response to the inability of the historical cost accounting model to deal with the effects of changing prices of non-monetary assets.
[edit] Concepts of Capital and Capital Maintenance

A major difference between US GAAP and IFRS is the fact that three fundamentally different concepts of capital and capital maintenance are authorized in IFRS while US GAAP only authorize two capital and capital maintenance concepts during low inflation and deflation: (1) physical capital maintenance and (2) financial capital maintenance in nominal monetary units (traditional Historical Cost Accounting) as stated in Par 45 to 48 in the FASB Conceptual Satement Nº 5. US GAAP does not recognize the third concept of capital and capital maintenance during low inflation and deflation, namely, financial capital maintenance in units of constant purchasing power as authorized in IFRS in the Framework, Par 104 (a) in 1989.
[edit] Concepts of Capital

Par. 102. A financial concept of capital is adopted by most entities in preparing their financial statements. Under a financial concept of capital, such as invested money or invested purchasing power, capital is synonymous with the net assets or equity of the entity. Under a physical concept of capital, such as operating capability, capital is regarded as the productive capacity of the entity based on, for example, units of output per day.

Par. 103. The selection of the appropriate concept of capital by an entity should be based on the needs of the users of its financial statements. Thus, a financial concept of capital should be adopted if the users of financial statements are primarily concerned with the maintenance of nominal invested capital or the purchasing power of invested capital. If, however, the main concern of users is with the operating capability of the entity, a physical concept of capital should be used. The concept chosen indicates the goal to be attained in determining profit, even though there may be some measurement difficulties in making the concept operational.
[edit] Concepts of Capital Maintenance and the Determination of Profit

Par. 104. The concepts of capital in paragraph 102 give rise to the following concepts of capital maintenance:

(a) Financial capital maintenance. Under this concept a profit is earned only if the financial (or money) amount of the net assets at the end of the period exceeds the financial (or money) amount of net assets at the beginning of the period, after excluding any distributions to, and contributions from, owners during the period. Financial capital maintenance can be measured in either nominal monetary units or units of constant purchasing power.

(b) Physical capital maintenance. Under this concept a profit is earned only if the physical productive capacity (or operating capability) of the entity (or the resources or funds needed to achieve that capacity) at the end of the period exceeds the physical productive capacity at the beginning of the period, after excluding any distributions to, and contributions from, owners during the period.

The concepts of capital in paragraph 102 give rise to the following three concepts of capital during low inflation and deflation:

* (A) Physical capital. See paragraph 102&103
* (B) Nominal financial capital. See paragraph 104.[3]
* (C) Constant purchasing power financial capital. See paragraph 104.[4]

The concepts of capital in paragraph 102 give rise to the following three concepts of capital maintenance during low inflation and deflation:

* (1) Physical capital maintenance: optional during low inflation and deflation. Current Cost Accounting model prescribed by IFRS. See Par 106.
* (2) Financial capital maintenance in nominal monetary units (Historical cost accounting): authorized by IFRS but not prescribed—optional during low inflation and deflation. See Par 104 (a) Historical cost accounting. Financial capital maintenance in nominal monetary units per se during inflation and deflation is a fallacy: it is impossible to maintain the real value of financial capital constant with measurement in nominal monetary units per se during inflation and deflation.
* (3) Financial capital maintenance in units of constant purchasing power (Constant Item Purchasing Power Accounting): authorized by IFRS but not prescribed—optional during low inflation and deflation. See Par 104(a). Financial capital maintenance in units of constant purchasing power is prescribed in IAS 29 [3] during hyperinflation: i.e. Constant Purchasing Power Accounting - CPPA.[5] Only financial capital maintenance in units of constant purchasing power per se can automatically maintain the real value of financial capital constant during inflation and deflation in all entities that at least break even—ceteris paribus—for an indefinite period of time. This would happen whether these entities own revaluable fixed assets or not and without the requirement of more capital or additional retained profits to simply maintain the existing constant real value of existing shareholders´ equity constant. Financial capital maintenance in units of constant purchasing power requires the calculation and accounting of net monetary losses and gains from holding monetary items during low inflation and deflation. The calculation and accounting of net monetary losses and gains during low inflation and deflation have thus been authorized in IFRS since 1989.

Par. 105. The concept of capital maintenance is concerned with how an entity defines the capital that it seeks to maintain. It provides the linkage between the concepts of capital and the concepts of profit because it provides the point of reference by which profit is measured; it is a prerequisite for distinguishing between an entity’s return on capital and its return of capital; only inflows of assets in excess of amounts needed to maintain capital may be regarded as profit and therefore as a return on capital. Hence, profit is the residual amount that remains after expenses (including capital maintenance adjustments, where appropriate) have been deducted from income. If expenses exceed income the residual amount is a loss.

Par. 106. The physical capital maintenance concept requires the adoption of the current cost basis of measurement. The financial capital maintenance concept, however, does not require the use of a particular basis of measurement. Selection of the basis under this concept is dependent on the type of financial capital that the entity is seeking to maintain.

Par. 107. The principal difference between the two concepts of capital maintenance is the treatment of the effects of changes in the prices of assets and liabilities of the entity. In general terms, an entity has maintained its capital if it has as much capital at the end of the period as it had at the beginning of the period. Any amount over and above that required to maintain the capital at the beginning of the period is profit.

Par. 108. Under the concept of financial capital maintenance where capital is defined in terms of nominal monetary units, profit represents the increase in nominal money capital over the period. Thus, increases in the prices of assets held over the period, conventionally referred to as holding gains, are, conceptually, profits. They may not be recognised as such, however, until the assets are disposed of in an exchange transaction. When the concept of financial capital maintenance is defined in terms of constant purchasing power units, profit represents the increase in invested purchasing power over the period. Thus, only that part of the increase in the prices of assets that exceeds the increase in the general level of prices is regarded as profit. The rest of the increase is treated as a capital maintenance adjustment and, hence, as part of equity.

Par. 109. Under the concept of physical capital maintenance when capital is defined in terms of the physical productive capacity, profit represents the increase in that capital over the period. All price changes affecting the assets and liabilities of the entity are viewed as changes in the measurement of the physical productive capacity of the entity; hence, they are treated as capital maintenance adjustments that are part of equity and not as profit.

Par. 110. The selection of the measurement bases and concept of capital maintenance will determine the accounting model used in the preparation of the financial statements. Different accounting models exhibit different degrees of relevance and reliability and, as in other areas, management must seek a balance between relevance and reliability. This Framework is applicable to a range of accounting models and provides guidance on preparing and presenting the financial statements constructed under the chosen model. At the present time, it is not the intention of the Board of IASC to prescribe a particular model other than in exceptional circumstances, such as for those entities reporting in the currency of a hyperinflationary economy. This intention will, however, be reviewed in the light of world developments.[6]
[edit] Requirements of IFRS
Main article: Requirements of IFRS

IFRS financial statements consist of (IAS1.8)

* a Statement of Financial Position
* a Statement of Comprehensive Income or two separate statements comprising an Income Statement and separately a Statement of Comprehensive Income, which reconciles Profit or Loss on the Income statement to total comprehensive income
* a Statement of Changes in Equity (SOCE)
* a Cash Flow Statement or Statement of Cash Flows
* notes, including a summary of the significant accounting policies

Comparative information is required for the prior reporting period (IAS 1.36). An entity preparing IFRS accounts for the first time must apply IFRS in full for the current and comparative period although there are transitional exemptions (IFRS1.7).

On 6 September 2007, the IASB issued a revised IAS 1 Presentation of Financial Statements. The main changes from the previous version are to require that an entity must:

* present all non-owner changes in equity (that is, 'comprehensive income' ) either in one Statement of comprehensive income or in two statements (a separate income statement and a statement of comprehensive income). Components of comprehensive income may not be presented in the Statement of changes in equity.
* present a statement of financial position (balance sheet) as at the beginning of the earliest comparative period in a complete set of financial statements when the entity applies the new standatd.
* present a statement of cash flow.
* make necessary disclosure by the way of a note.

The revised IAS 1 is effective for annual periods beginning on or after 1 January 2009. Early adoption is permitted.