A. FRS-IFRS comparison

This section has been prepared by the staff of MASB to provide a summary of major differences between FRS and its equivalent IFRS. The remarks made under the 'Transiton to 2012' are views of the staff only. Broadly, the differences are editorial, additional requirements, disclosure and transitional provision.

 

FRS

Equiv. IFRS/IAS

Where do we differ

Transition to 2012

FRS 102 Inventories IAS 2 Inventories The wordings in paragraphs 2 and 3 on biological assets follow that of the respective paragraphs in the original IAS 2 [the version of IAS 2 before issuance of IAS 41 Agriculture. ]

The wordings in paragraphs 2 and 3 will be amended to follow that of IAS 2 when MASB adopts IAS 41 Agriculture.

FRS 116 Property, plant and equipment IAS 16 Property, Plant and Equipment We included an additional disclosure to require entity to disclose if it had applied the transitional provision, if any, provided by MASB when IAS 16 was first adopted as MASB approved accounting standard in 1998. That transitional provision allowed the entity to carry the asset's revalued amount as surrogate costs.

The staff proposes that this additional disclosure to be removed.

See MASB ED 75

FRS 117 Leases IAS 17 Leases We added two transitional provisions, one of which is in relation to the migration of MASB 10 Leases to FRS 117:
  1. to require an entity that had previously accounted its leasehold land to classify the unamortised carrying amount as prepaid lease payment.

    If the entity had previously revalued such leasehold land, the entity shall retain the unamortised revalued amount as the surrogate carrying amount of prepaid lease payments.

    IAS 17 does not have this transitional provision as the requirement to treat leasehold land as prepaid lease payment was already prescribed in the original IAS 17.

  2. an entity need not disclose the effect of impending changes of accounting standards required under FRS 108 Accounting Policies, Changes in Estimates and Errors when it first applied the revised Standard.

The staff proposes that these transitional provisions to be removed.

See MASB ED 75

FRS 121 The Effects of Changes in Foreign Exchange Rates IAS 21 The Effects of Changes in Foreign Exchange Rates FRS 121 mandates the presentation currency to be Ringgit Malaysia so as to be consistent with local law. IAS 21 allows any currency to be the entity's presentation currency.

The staff proposes that this requirement to be removed.

See MASB ED 75

FRS 139 Financial Instruments: Recognition and Measurement IAS 39 Financial Instruments: Recognition and Measurement We added three transitional provisions:
  1. the transitional provision for first time adoption of FRS 139 is as per the original IAS 39 when IASB put in place that Standard for the first time.
  2. an entity need not disclose the effect of impending changes of accounting standards required under FRS 108 Accounting Policies, Changes in Estimates and Errors when it first applied the revised Standard.
  3. As a transitional arrangement, the Financial Services sector had requested for a transitional period for the purpose of complying with the collective assessment of impairment requirement in this Standard.  Consequently, Bank Negara Malaysia may prescribe the use of an alternative basis for collective assessment of impairment for banking institutions for a transitional period.

The staff proposes that these transitional provisions to be removed.

See MASB ED 75

FRS 140 Investment Property IAS 40 Investment Property We included an additional disclosure to require entity to disclose that it had applied the transitional provision, if any, provided by MASB in 1998. That transitional provision allowed the entity to carry the asset's revalued amount (under IAS 16) as surrogate costs.

The transitional provision in FRS 140 is also amended to follow that of the original IAS 40 when IASB put in place that Standard for the first time.

The staff proposes that the additional disclosure and transition to be removed.

See MASB ED 75

FRS 4 Insurance Contracts IFRS 4 Insurance Contracts We added a transitional provision that an entity need not disclose the effect of impending changes of accounting standards required under FRS 108 Accounting Policies, Changes in Estimates and Errors when it first applied the Standard.

The staff proposes that the additional transition provision to be removed.

See MASB ED 75

FRS 7 Financial Instruments: Disclosures IFRS 7 Financial Instruments: Disclosures We added two transitional provisions:
  1. an entity is not required to present any comparative disclosures required by the Standard when it first applied the Standard.
  2. an entity need not disclose the effect of impending changes of accounting standards required under FRS 108 Accounting Policies, Changes in Estimates and Errors when it first applied the Standard.
We added a requirement that an entity shall not apply the Standard before 1 January 2010 unless it also applies FRS 139.

The staff proposes that these additional provisions to be removed.

See MASB ED 75

IC Interpretation 12 Service Concession Arrangements

IFRIC 12 Service Concession Arrangements

We added a transitional provision that an entity need not disclose the effect of impending changes of accounting standards required under FRS 108 Accounting Policies, Changes in Estimates and Errors when it first applied the Standard.


The staff proposes that the additional transition provision to be removed.

See MASB ED 75

Contact Us     |     Career     |     Disclaimer     |     FAQ

This site is best viewed with a resolution of 1024x768 (or higher) and supports Mozilla Firefox, Google Chrome and Safari. From the feedback we received, IE users may experience some interruptions when browsing this site.