The translation is being undertaken in response to constituent requests for translation of accounting terms, and to calls within Malaysia to uphold the status of Bahasa Malaysia as the national language. The translated glossary is intended to encourage consistent terminology in financial statements, accounting textbooks and teaching resources in Malaysia. It may also assist in the development of resources for the adoption of International Public Sector Accounting Standards (IPSAS) in Malaysia from 2015.

The Request for Views provides the following background:

The MFRS glossary comprises 1,822 International Financial Reporting Standards (IFRS) terminologies extracted from the Glossary of Terms. This list is also inclusive of the glossary extracted from the IFRS issued by the IASB as at 31 December 2012... The MFRS issued by the Board in 2011 are fully IFRS-compliant standards. Hence, the MFRS glossary is word-for-word to the IFRS glossary. The MFRS glossary range from existing and new terms extracted from the MFRS and also the accompanying documents which include the Basis for Conclusions, Illustrative Examples and Implementation Guidance.

The primary source of the proposed translations are publications produced by Dewan Bahasa dan Pustaka (DBP) (a Malaysian authority with responsibility for standardised translations), supplemented by equivalent words in Bahasa Malaysia, and in rare circumstances, the use of the original English term. Translations for over 1,700 terms are included in the Request for Views.

Comments on the Request for Views are requested by 31 March 2014. Click for press release (link to MASB website).

The survey was conducted during 2013, with the survey period closing on 30 September 2013. A total of 80 responses where received from a cross-section of Malaysian companies, and whilst the MASB acknowledges the level of response "may not be representative of the total population of public listed companies", the MASB decided to publish the survey results as it is considered to provide "some form of indication of the efforts undertaken and the extent of challenges encountered in implementing MFRSs".

The survey results included:

• The implementation process saw some consistent themes: more than 50% of respondents engaged and consulted with their external auditors, attended continuing professional education (CPE) and implemented internal implementation plans. Post transition, attending CPE events was a key response to addressing ongoing changes in requirements
• The largest areas where challenges were experienced include issues with specific technical requirements, costs and resources and understanding the requirements of MFRSs. No factor was ubiquitous, and approximately one-third of respondents did not note any challenges at all
• The major recommendations from respondents to the MASB included calls for more outreach, seminars, training and workshops, and the development of a helpline and practice aids. MASB staff observations note that the MASB is not generally tasked with these responsibilities and is precluded from giving advice to individuals or corporations.

Click for more information on the MASB website.

The issue of SOP 3 follows a formal consultation process begun in May 2012. Consistent with the IASB IFRS Practice Statement, the SOP provides non-mandatory guidance for Malaysian entities opting to to accompany financial statements with management commentary, setting out the principles, qualitative characteristics and elements of management commentary.

Click for MASB press release (link to MASB website).

The summary notes that small and medium sized entities represent over 97% of Malaysian business entities and that the World Bank has recommended priority be given to the development of standards for private entities.

The summary goes on to outline the various exposure drafts and other developments over a number of years, with various proposals explained and summarised.  The latest development was a 'Request for Views' which sought to revisit the entire issue.  Feedback on the paper indicated most respondents were supportive of moving to an IFRS-based framework, but some concerns were raised about the appropriateness of prescribing an IFRS-based framework for all classes of SMEs.

The summary also notes recent developments at the global level, in particular the IASB's recently commenced review of the IFRS for SMEs.

The summary concludes as follows:

The change to Private Entities reporting has taken a fair bit of time. This was largely unavoidable given the changes in circumstances and the various options available. However, we are getting closer to a solution. The current view is that a change is needed given the increasing use of IFRS, the need to equip our accountants with internationally recognised qualification and the country’s aspiration to improve our SME base. As far as the solution itself is concerned, by Quarter 1, 2013 the Board will outline its proposed decision and implementation framework for comments and issue the new framework by 2014/2015.

The full summary is available on the MASB website.

MASB ED 76 Management Commentary (Guidance) is based on IASB Practice Statement Management Commentary.  Consistent with the guidance in the IASB Practice Statement, the proposals in MASB ED 76 would not result an a Malaysian Financial Reporting Standard (MFRS) and as such its application would not be mandatory under the MFRS Framework.

The MASB is requesting comments on the proposals by 30 July 2012.

Click for MASB press release (link to MASB website).

Malaysia already has existing Private Entity Reporting Standards (PERS).  The MASB is proposing to replace the PERS with a new set of standards in 2015 to take effect for accounting periods beginning on or after 1 January 2016.

The MASB has released a number of proposals to replace PERS over recent years, including an updated 'domestic' standard (ED 52), a standard based on the IFRS for SMEs (ED 72), or a form of 'Reduced Disclosure Requirements' (ED 74, retaining IFRS recognition and measurement requirements but with less disclosures).

The MASB's Request for Views seeks constituent feedback on:

• Whether the existing PERS should be replaced by ED 52, ED 72 or ED 74
• Whether there are any immediate changes that the PERS framework requires if private entities continue applying it until the new standards are in place
• Whether the proposed timeframe is sufficient to enable a private entity to properly transition to the new financial reporting requirements.

Click for MASB press release (link to MASB website).