Malaysia proposes 'Reduced Disclosure Requirements' for certain entities

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10 Jan 2011

The Malaysian Accounting Standards Board (MASB) has issued an exposure draft proposing to introduce a framework known as 'Financial Reporting Standards — Reduced Disclosure Requirements' (FRS-RDR) which would allow entities that meet specified criteria to provide lesser disclosures than those required under the existing Financial Reporting Standards (FRS) framework.

The proposed disclosures under the FRS-RDR would be the minimum required in the financial statements of eligible entities, which include non-publicly accountable subsidiaries, associates and jointly-controlled entities of a non-private entity. Recognition and measurement requirements under the FRS-RDR framework would be identical to the FRS framework to allow consolidated financial statements to be more easily prepared. MASB is working towards full convergence of FRS with IFRSs as issued by IASB by 1 January 2012.

'Reduced Disclosure Requirements' have recently been implemented in Australia and are being considered in New Zealand, but for all non-publicly accountable entities, rather than just related entities of non-private entities as is being proposed in Malaysia. In March 2010, the MASB issued an exposure draft on the possible adoption of the IFRS for SMEs for other private entities, in lieu of the existing Private Entity Reporting Standards (PERSs).

Comments on the exposure draft are requested by 31 January 2011. Click for press release (link to MASB website).

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