This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Malaysia defers revenue standard and overall effective date for transitioning entities

  • Malaysia Image

08 Sep 2015

The Malaysian Accounting Standards Board (MASB) has announced that the effective date of MFRS 15 'Revenue from Contracts with Customers' will be deferred to annual periods beginning on or after 1 January 2018. MFRS 15 is word-for-word identical with IFRS 15. As a result, the effective date for Transitioning Entities (TEs) to apply the Malaysian Financial Reporting Standards (MFRSs) will also be deferred to annual periods beginning on or after 1 January 2018.

The MASB voted on the deferral after the IASB decided on 22 July 2015 that it would defer the effective date of IFRS 15 Revenue from Contracts with Customers by one year. In oder to keep full convergence with the IASB standards, the MASB decided to follow suit.

This decision also affects TEs. The MFRS Framework applied to the majority of Malaysian entities for annual periods beginning on or after 1 January 2012. However, TEs, being those within the scope of MFRS 141 Agriculture and IC Interpretation 15 Agreements for Construction of Real Estate, together with parents, significant investors and venturers of those entities, were exempted from the MFRS Framework pending completion of the IASB's projects on revenue recognition and bearer plants. When the IASB completed IFRS 15 in 2014, Malaysia set the transition date for real estate and agricultural entities at 1 January 2017 - in line with the original effective date of IFRS 15 to give TEs sufficient preparation time. Given it is now believed that additional preparation time is needed to implement the revenue requirements, the MASB also believes that TEs may also benefit from additional time for implementing the new framework. The new mandatory transition date is now also 1 January 2018. However, these entities are encouraged to consider early application.

Formal amendments to IFRS 15 confirming the new effective date are expected later this month. Once the IASB has issued the amendment, the MASB intends to follow suit with a formal amendment to MFRS 15.

Please click for more information in the press release on the MASB website.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.