rayuan sivil no. 02( ) – 6 – 2011 (w) - Malaysian Legal and Tax ...
rayuan sivil no. 02( ) – 6 – 2011 (w) - Malaysian Legal and Tax ... rayuan sivil no. 02( ) – 6 – 2011 (w) - Malaysian Legal and Tax ...
This Court’s Decision method is used its value include the assets, liabilities and profits in arriving at the value of the firm. In accounting pertaining the acceptable meaning of goodwill – carries two meanings, one the entire valuation of the practice and two is goodwill as a specific assets in the balance sheet of the entity. In this case the understanding is that if this method is used it refers to entire valuation of the practice.” 31. It appears that there are conflicting valuation Reports regarding the value of the Appellant’s share upon his retirement on 31/12/1988. 32. From the four reports produced before the High court, three of them, i.e. the AWS Report 1985, the AA Report 1986 and the AA Report 1990 are based on the surplus-profit method of valuation and are in favour of the Respondents. The fourth Report (LYK Report 1995) however is in conflict with the other three reports. 33. In the LYK Report 1995, Lee Yat Kong from the Public Accountancy Co. of Wong, Lee & Co., in giving evidence for the Appellant, had commented on the other three reports. Briefly, the LYK Report 1995, found that:- 12
(a) The AWS Report 1985, has not taken into account other assets besides Goodwill of the Firm for the following reasons:- (i) AWS Report clearly shows that it was a valuation of only the Goodwill of Zain & Co. and not a valuation of the Firm itself including Goodwill and all other assets of the Firm. (ii) The assets of the Firm at the material time on 01/01/1980 comprised of:- a) Goodwill; b) Capital; c) Fixed Assets i) Library books; ii) Furniture and fittings; iii) Office equipment; iv) Renovation and partition; v) Motor vehicles; d) Bills rendered but unpaid; e) Work done but not billed; f) Work in progress; g) Disbursements advanced to clients; h) Other monies owing to clients; i) Any other assets. (b) The AA Report 1990 is incomplete and incorrect because it is a computation of only the Goodwill of the Appellant 13
- Page 1 and 2: DALAM MAHKAMAH PERSEKUTUAN MALAYSIA
- Page 3 and 4: Background Facts 2. Messrs Zain & C
- Page 5 and 6: eport. The partners accepted the re
- Page 7 and 8: shares of the Firm’s net profits
- Page 9 and 10: (iv) The report by Lee Yat Kong fro
- Page 11: eferred to the value of the entire
- Page 15 and 16: ‘Goodwill computation of firm by
- Page 17 and 18: 37. The Court of Appeal was also un
- Page 19 and 20: “My dear En. Zain, I thank you fo
- Page 21 and 22: SP2 had not prepared a written repo
- Page 23: Solicitors for the Respondents: Mes
(a) The AWS Report 1985, has <strong>no</strong>t taken into account other<br />
assets besides Goodwill of the Firm for the following<br />
reasons:-<br />
(i) AWS Report clearly shows that it was a valuation of<br />
only the Goodwill of Zain & Co. <strong>and</strong> <strong>no</strong>t a valuation<br />
of the Firm itself including Goodwill <strong>and</strong> all other<br />
assets of the Firm.<br />
(ii) The assets of the Firm at the material time on<br />
01/01/1980 comprised of:-<br />
a) Goodwill;<br />
b) Capital;<br />
c) Fixed Assets<br />
i) Library books;<br />
ii) Furniture <strong>and</strong> fittings;<br />
iii) Office equipment;<br />
iv) Re<strong>no</strong>vation <strong>and</strong> partition;<br />
v) Motor vehicles;<br />
d) Bills rendered but unpaid;<br />
e) Work done but <strong>no</strong>t billed;<br />
f) Work in progress;<br />
g) Disbursements advanced to clients;<br />
h) Other monies owing to clients;<br />
i) Any other assets.<br />
(b) The AA Report 1990 is incomplete <strong>and</strong> incorrect because<br />
it is a computation of only the Goodwill of the Appellant<br />
13
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