Malaysia exposes proposals for full convergence with IFRS
29 Jun 2011
The Malaysian Accounting Standards Board (MASB) has issued an exposure draft, MASB Exposure Draft 75 IFRS-compliant Financial Reporting Standards (FRS) as part of achieving full convergence of Malaysian accounting requirements with with IFRS on 1 January 2012.
The existing financial reporting framework in Malaysia is virtually the same as the IFRS framework except for IAS 41 Agriculture, IFRIC 15 Agreements for the Construction of Real Estate, different effective dates and additional transitional provisions in a limited number of standards.
The proposed FRS standards contained in the Exposure Draft are equivalent to the IFRSs issued by the IASB. Therefore, MASB asserts that financial statements drawn up in accordance with the new IFRS-compliant FRS framework will be equivalent to financial statements that have adopted the IFRS framework.
Under the proposals in the Exposure Draft, entities would be required to make, in the notes, an explicit and unreserved statement of compliance with both Financial Reporting Standards (FRSs) and International Financial Reporting Standards (IFRSs).
The MASB has tentatively decided all entities, other than those which meet its definition of a 'private entity', will be required to apply the new IFRS-compliant FRS framework. However, a private entity would be permitted to apply the new IFRS-compliant FRS framework if it decides to do so.
Click for MASB announcement (link to the MASB website).
