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FRIDAY, MA,
BILL PROPOSES TO CORRECT ACCOUNTING ANOMALIES
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PROVISIONS TO REMEDY MINOR ACCOUNTING ANOMALIES IN THE PROFIT CONTROL SCHEME FOR THE KOWLOON MOTOR BUS COMPANY (1933) LTD AND THE CHINA MOTOR BUS COMPANY ARE CONTAINED IN THE PUBLIC BUS SERVICES (AMENDMENT) BILL 1986 GAZETTED TODAY (FRIDAY).
UNDER THE PUBLIC BUS SERVICES ORDINANCE, OPERATION OF THE PROFIT CONTROL SCHEME CONTAINED THEREIN IS TO BE REVIEWED BY THE GOVERNOR-IN-COUNCIL EVERY TWO YEARS. EARLIER REVIEW OF THE SCHEME INDICATED THAT IT WAS WORKING SATISFACTORILY, EXCEPT FOR A SMALL NUMBER OF ANOMALIES.
FOLLOWING DISCUSSIONS WITH THE BUS COMPANIES, IT WAS DECIDED THAT LEGISLATION SHOULD BE DRAFTED TO BRING THE OPERATION OF THE SCHEME MORE IN LINE WITH STANDARD ACCOUNTING PRINCIPLES AND PRACTICES.
A SPOKESMAN FOR TRANSPORT BRANCH EXPLAINED THAT THE BILL,
IF ENACTED, WOULD SERVE THREE MAJOR PURPOSES
* CURRENCY EXCHANGE PROFITS OR LOSSES ARISING FROM TRANSACTIONS RELATING TO THE FRANCHISES WOULD BE INCLUDED IN THE SCHEME :
*
INCOME FROM THE SALE OF STORES AND SPARE PARTS BY THE TWO BUS COMPANIES WOULD BE INCLUDED IN THE SCHEME: AND
* TAX CHARGES RELATING TO OPERATIONS OUTSIDE
THE SCHEME WOULD BE EXCLUDED.
THE BILL IS EXPECTED TO BE INTRODUCED INTO THE LEGISLATIVE COUNCIL FOR FIRST READING ON MAY 28.
COMMENTS ON THE PROVISIONS OF THE BILL CAN BE SENT TO THE SECRETARY FOR TRANSPORT, ST JOHN'S BUILDING, EIGHTH FLOOR, OR TO UMELCO AT 8, JACKSON HOUSE, CENTRAL.