Malaysia defers IFRS adoption for agricultural and real estate entities
Jul 04, 2012
The Malaysian Accounting Standards Board (MASB) has announced a decision to allow agriculture and real estate companies to defer the adoption of the (IFRS compliant) Malaysian Financial Reporting Standards for a further year, to annual periods beginning on or after 1 January 2014. Consistent with previous deferrals, the deferral is in light of delays in the expected timing of the IASB's revenue recognition project, and the possibility of the IASB taking on a project on agriculture.
With the exception of agricultural and real estate entities, Malaysian Financial Reporting Standards are required to be applied on a mandatory basis by all non-private Malaysian entities with effect from 1 January 2012. The MASB had previously deferred the application of the standards by agricultural and real estate entities to annual periods beginning on or after 1 January 2013. The deferral was implemented in light of concerns on the application of the Malaysian equivalents to IFRIC 15 Agreements for the Construction of Real Estate and IAS 41 Agriculture in the Malaysian context.
The latest deferral to 2014 is designed to permit the IASB to finalise the new revenue recognition standard to replace IAS 18 Revenue (and so supersede IFRIC 15). Furthermore, it also appears that the IASB will take on a project to reconsider certain aspects of IAS 41 as a result of its Agenda Consultation 2012.
Click for MASB press release (link to MASB website).