Malaysia further extends IFRS transition timeline for certain entities

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08 Aug 2013

The Malaysian Accounting Standards Board (MASB) has announced that it will permit agriculture and real estate companies to defer the adoption of Malaysia's IFRS-compliant standards for a further year, until annual periods beginning on or after 1 January 2015. The deferral of the mandatory application date for these entities responds to the expected timing of the IASB's projects on revenue recognition and bearer plants.

In announcing the decision, the MASB noted the following:

While the Board remains committed to maintaining a single set of globally accepted accounting standards for the capital market, it is cognisant of the fact that the IASB’s vigorous due process may at times prolong the project longer than expected. Hence the Board believes extending the transitional period for another year will provide Transitioning Entities adequate time to implement the new Revenue Standard and to avoid the possibility of repetitive substantial restatement in the financial statements in the event the proposed limited-scope improvements to IAS 41 on bearer plants do finally occur as currently anticipated by the Board.

Other entities in Malaysia were required to apply IFRS-compliant standards to annual periods beginning on or after 1 January 2012. Click for MASB press release (link to MASB website).

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