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WANG YAN B17022851.Malaysian Financial Reporting Standard1.1.History and development of MFRSThe Malaysian Financial Reporting Standard is accepted as an international financialreporting standard framework, thereby ensuring international acceptance of this framework.Because the international acceptance of this MFRS Framework means that the account statementprepared by Malaysia is applicable to foreign countries, and Malaysia not only makes domesticuse of the account statements. A holding company that must issue consolidated communityreports in conformance with full MASB financial reporting standards uses MFRS generally andimplements it. To order to comply completely with the IFRS (Malaysian Accounting Standards)on 19 November 2011, the Malaysia Financial Reporting Standards (MFRS) were created. Thestructure for the International Accounting Standards Board (IASB) generally includes theexisting and updated and revised Accounting Standards. The integration is primarily aimed atraising the gap between IFRS Financial Reporting Standards (FRSs) and then making financialstatements of businesses straightforward and comparable. There are however some incoherences,such as IAS 41 Agriculture and IFRS 9 Financial Instruments, and the MASB does not take themas the distance between the FRS and IFRS is narrowed. In Malaysia, it is known thatdevelopments were focused on MASB accounting principles over the last 15 years, although thelatest accounting procedure saw the accounting profession exercise its obligations under theMFRS. However, the MFRS is Malaysia 's new accounting rules, which are applicable in everyaccounting period beginning on or after 1 January 2012 to IFRS equivalents. Malaysia is the firstannual adoption of MFRS and is an initiative of MASB to implement Malaysia 's accountingpolicy in line with the IASB and FASB convergence project. The former FRS is replaced byMFRS to make sure the accounting standard in Malaysia is fully integrated and globally thesame as in Malaysia. (MASB, n.d.)1.2.Purposes of MFRSThe goal of the MFRS is to enhance revenue reporting and financial statementscomparability for businesses globally. Consequently, it offers greater transparency for companies
WANG YAN B1702285in particular where there is unintentional variation in functional implementations where existingstandards are converged to the new accounting system. It also offers new instructions fortransactions not previously completely discussed. MFRS will allow real estate developers toincreasingly recognize revenue for the immobilization industry. The Board believes that MFRSwill have little if ever effect on the volume and timing of revenue recognition for certain simpleretail transactions. In other arrangements, such as long-term service arrangements and multi-element agreements such as telecommunications and the car industry, MFRS 15 may result,either in adjustments in the amount of income recognized or in a change in the timing of therevenue. MFRS seeks to improve integrity and transparency in financial reporting, which will