Financial Reporting Act 1997 defined approved accounting standards as:
a)
Accounting standards which are issued or adopted by the Malaysian
Accounting Standards Board ("MASB")
b)
In relation to foreign companies listed on a stock exchange in
Malaysia, acceptable internationally recognized accounting
standards.
There are two approved accounting
standards issued by MASB; Financial Reporting Standards ("FRS") for entities
other than private entities; and Private Entity Reporting Standards ("PERS")
for private entities.
Private entity is a private company
incorporated under the Companies Act 1965 that;
a)
Is not itself required
to prepare or lodge any financial statements under any law administered by
the Securities Commission or Bank Negara Malaysia; and
b)
Is not a
subsidiary or associate of, or jointly controlled by an entity which is
required to prepare or lodge any financial statements under any law
administered by the Securities Commission or Bank Negara Malaysia.
Documents in the form of Exposure Drafts are published and ready for
comments to allow an opportunity for interested parties to comment on the
proposals and for MASB to gauge the appropriateness and level of acceptance
of those proposals.
MASB issued technical pronouncements for the
purpose of providing uidances on the application of general accepted
accounting principles to the resolution of a specific accounting issue.
The Financial Reporting Foundation
("FRF") and the Malaysian Accounting Standards Board ("MASB") announced on 1
August 2008 the plan to bring Malaysia’s Financial Reporting Standards
("FRS") to full convergence with the International Financial Reporting Standards
("IFRS") by 1 January 2012.
Convergence with IFRS means full
compliance with IFRS as a basis for financial reporting system in Malaysia.
The changeover will assist Malaysian businesses to operate in an increase
global environment by placing Malaysian entities and capital markets on a
level playing field with other international economies and markets.
View press release
IFRS-Compliant FRS Framework
Convergence with
IFRS means full compliance with IFRSs issued by the International Accounting
Standards Board ("IASB") as a basis for financial reporting in Malaysia. Therefore, in line with
the plans made by FRF and MASB to converge with IFRS by 1 January 2012, MASB issued
an exposure draft, MASB Exposure Draft 75 IFRS-compliant Financial
Reporting Standards ("FRS") on 28 June 2011. The standards contained in the Exposure Draft,
when finalised, will result in the Malaysian financial reporting framework being recognised as
an IFRS-compliant financial reporting framework.
View press release and learn more on
MASB ED 75
MASB Exposure Draft ("ED") 72 Financial Reporting Standard for Small and Medium-sized Entities ("FRS for SMEs")
On 26 March 2010, MASB issued the MASB ED 72 Financial Reporting Standard for Small and
Medium-sized Entities ("FRS for SMEs") which is intended for use by SMEs in Malaysia that do not
have public accountability but required to publish general purpose financial
statements for external users. The draft FRS for SMEs will also provide a platform
for growing businesses that are preparing to enter public capital markets, where
application of FRSs is required.
View press release
and learn more on
MASB ED 72
The IFRS for SMEs is applicable to entities
that do not have public accountability and publish general purpose
financial statements for external users. The contents of IFRS for SMEs are
derived from the full IFRS, with appropriate modifications based on the
needs of users of SME financial statements and cost benefit considerations.
The IASB published the IFRS for SMEs on 9 July 2009. Whether the IFRS for
SMEs is set to replace the existing PERS in Malaysia is an unknown fact at
this juncture.
View press release
and learn more on
IFRS for SMEs
IFRS Taxonomy
The IFRS Taxonomy is the eXtensible Business Reporting Language ("XBRL") of
the IFRSs which includes the International Accounting Standards ("IASs"), Interpretations, and the IFRS for
Small and Medium-sized Entities ("SMEs"), issued by the IASB. The IFRS Foundation issues IFRS Taxonomy to
address the demand for an electronic standard to transmit IFRS financial information. It is developed annually
and is released once a year to incorporate new IFRSs, improvements to existing IFRSs, and also changes in XBRL technology. Learn more on IFRS Taxonomy
IASB News
Global Convergence
IFRS standards are accounting standards and
interpretations adopted by the International Accounting Standards Board
(“IASB”). The goal of the IASC Foundation and IASB is to develop, in the
public interest a single set of high quality global accounting standards. It
is also to facilitate the movement of capital worldwide and provide higher
clarify and consistency to financial reporting in the global marketplace.
IFRS convergence has gained steady support from many countries. The
standards are now used by more than 100 countries around the world. Many
major constituents of the world’s capital markets realize the importance of
a single set of high quality accounting standards.
Information on the global convergence
IASB
Work Plan
IASB released work plans showing the estimated dates
for the publication of amendments towards existing standards, and issuance of new standards and interpretations.
The effective date is generally within 6 to 18 months after publication date. Completion of projects
are subject to changes based on the input received throughout the development of these projects. View workplan for IFRSs and
Interpretations ("IFRICs")
Other useful resources
Summaries of IFRS Standards and Interpretations
Useful
summaries of IFRS standards and interpretations can be accessed from
the following resources.
Below are examples of illustrative financial statements produced by the respective accounting firms
to assist in preparing financial statements in accordance with the International Financial Reporting
Standards ("IFRS").
