Malaysia
- Malaysia is included in the IFAD GAAP Convergence Studies
- National Professional Organisation Websites:
- Standard-Setter Website: Malaysian Accounting Standards Board
- Response to IFAC Member Body Survey on Standard Setting and Regulation
- Participant in the Asian-Oceanian Standard-Setters Group (AOSSG)
Financial Reporting Framework in Malaysia
Companies registered in Malaysia are required to prepare statutory financial statements in accordance with the approved accounting standards issued by the Malaysian Accounting Standards Board (MASB). Foreign companies listed on a stock exchange in Malaysia may prepare financial statements in accordance with certain internationally recognised accounting standards such as the IFRSs.MASB has two sets of approved accounting standards, namely:
- MASB Approved Accounting Standards for Entities Other than Private Entities – Financial Reporting Standards (FRSs); and
- MASB Approved Accounting Standards for Private Entities – Private Entity Reporting Standards (PERSs).
On 1 August 2008, the Financial Reporting Foundation, which oversees the operations of MASB, and MASB issued a statement on their plan for full convergence of the FRSs with IFRSs as issued by IASB by 1 January 2012. The staff of MASB has issued a proposed calendar that provides a tentative adoption timeline of IFRSs issued by IASB as at 19 June 2009. Private entities that apply PERSs will continue to do so until such time the MASB decides otherwise.
On 17 November 2011, the MASB issued a new MASB approved accounting framework, the Malaysian Financial Reporting Standards (MFRS Framework), which is a fully IFRS-compliant framework and equivalent to IFRSs. The MFRS Framework comprises Standards as issued by the International Accounting Standards Board (IASB) that are effective on 1 January 2012. It also comprises new and revised Standards recently issued by the IASB that will be effective after 1 January 2012 such as Standards on financial instruments, consolidation, joint arrangements, fair value measurement and employee benefits, among others. The adoption of the MFRS Framework will allow Malaysian entities to be able to assert that their financial statements are in full compliance with IFRSs.
The MFRS Framework is to be applied by all Entities Other Than Private Entities for annual periods beginning on or after 1 January 2012, with the exception of entities that are within the scope of MFRS 141 Agriculture (MFRS 141) and IC Interpretation 15 Agreements for Construction of Real Estate (IC 15), including its parent, significant investor and venturer (called 'Transitioning Entities'). Transitioning Entities will be allowed to defer adoption of the new MFRS Framework for an additional one year. Consequently, adoption of the MFRS Framework by Transitioning Entities will be mandatory for annual periods beginning on or after 1 January 2013.