acc203.docx - a Explain purpose of Malaysian Financial Reporting Standards The Malaysian Financial Reporting Standards which also known as(MFRS was

acc203.docx - a Explain purpose of Malaysian Financial...

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a) Explain purpose of Malaysian Financial Reporting Standards. The Malaysian Financial Reporting Standards which also known as (MFRS) was introduced by the Malaysian Accounting Standards Board (MASB). MFRS came into effect on 1 January 2012. MFRS basically a mirror based on (IFRS) International Reporting Standards. It is fully compatible towards IFRS framework, which increases the transparency and credibility of financial reporting in Malaysia. Companies that need to prepare group consolidated accounts which complement with the full financial reporting standards that have been set by the MASB are usually practice the Malaysian Financial Reporting Standards in generally. Companies that are planning for IPO would especially be most benefit from the MFRS. However, for medium and small entities (SMEs) there are regulations that must be followed to. Few regulations entail for SMEs are fair value for information disclosure must be comprehensive, all investments must be accounted for and the types of statements that need to be prepared include loss statement and profit, a comprehensive income statement, and a statement for the company’s financial position at the beginning for the comparative period. Pursuant to the MASB Notice issued on 28 October 2015 entitled ‘Amendment to the effective date and applicability of the Malaysian Financial Reporting Standards’ , entities that have in the alternative chosen to apply FRSs shall comply with MFRSs for annual periods beginning on or after 1 January 2018. Early application of the MFRS framework is permitted.
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