MFRS edit.docx - WANG YAN B1702285 1 Malaysian Financial Reporting Standard 1.1 History and development of MFRS The Malaysian Financial Reporting

MFRS edit.docx - WANG YAN B1702285 1 Malaysian Financial...

This preview shows page 1 - 3 out of 11 pages.

WANG YAN B1702285 1. Malaysian Financial Reporting Standard 1.1. History and development of MFRS The Malaysian Financial Reporting Standard is accepted as an international financial reporting standard framework, thereby ensuring international acceptance of this framework. Because the international acceptance of this MFRS Framework means that the account statement prepared by Malaysia is applicable to foreign countries, and Malaysia not only makes domestic use of the account statements. A holding company that must issue consolidated community reports in conformance with full MASB financial reporting standards uses MFRS generally and implements it. To order to comply completely with the IFRS (Malaysian Accounting Standards) on 19 November 2011, the Malaysia Financial Reporting Standards (MFRS) were created. The structure for the International Accounting Standards Board (IASB) generally includes the existing and updated and revised Accounting Standards. The integration is primarily aimed at raising the gap between IFRS Financial Reporting Standards (FRSs) and then making financial statements 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 them as the distance between the FRS and IFRS is narrowed. In Malaysia, it is known that developments were focused on MASB accounting principles over the last 15 years, although the latest accounting procedure saw the accounting profession exercise its obligations under the MFRS. However, the MFRS is Malaysia 's new accounting rules, which are applicable in every accounting period beginning on or after 1 January 2012 to IFRS equivalents. Malaysia is the first annual adoption of MFRS and is an initiative of MASB to implement Malaysia 's accounting policy in line with the IASB and FASB convergence project. The former FRS is replaced by MFRS to make sure the accounting standard in Malaysia is fully integrated and globally the same as in Malaysia. (MASB, n.d.) 1.2. Purposes of MFRS The goal of the MFRS is to enhance revenue reporting and financial statements comparability for businesses globally. Consequently, it offers greater transparency for companies
Image of page 1
WANG YAN B1702285 in particular where there is unintentional variation in functional implementations where existing standards are converged to the new accounting system. It also offers new instructions for transactions not previously completely discussed. MFRS will allow real estate developers to increasingly recognize revenue for the immobilization industry. The Board believes that MFRS will have little if ever effect on the volume and timing of revenue recognition for certain simple retail 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 the revenue. MFRS seeks to improve integrity and transparency in financial reporting, which will
Image of page 2
Image of page 3

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture