Home Our Standards MASB Approved Accounting Standards for Private Entities

PERS, as set out below, is a set of accounting standards issued or adopted by MASB for application by all private entities.

A private entity is a private company (See Note), incorporated under the Companies Act 1965, that -

  • is not itself required to prepare or lodge any financial statements under any law administered by the Securities Commission or the Bank Negara Malaysia; and
  • is not a subsidiary or associate of, or jointly controlled by, an entity which is required to prepare or lodge any financial statements under any law administered by the Securities Commission or the Bank Negara Malaysia.

The meaning of "subsidiary", "associate" and "jointly controlled" are as respectively defined and explained in FRS 127 Consolidated and Separate Financial Statements, FRS 128 Investments in Associates and FRS 131 Interests in Joint Ventures.

An entity may only be treated as a private entity in relation to such annual periods or annual periods through out which it is a private entity.

Private entities shall comply with either:

  1. PERS in their entirety; or
  2. FRS in their entirety.
Note:

A private company is defined in Section 15(1) of Companies Act 1965 as:

A company having a share capital may be incorporated as a private company if its memorandum or articles -

  1. restricts the right to transfer its shares;
  2. limits to not more than fifty the number of its members (counting joint holders of shares as one person and not counting any person in the employment of the company or of its subsidiary or any person who while previously in the employment of the company or of its subsidiary was and thereafter has continued to be a member of the company);
  3. prohibits any invitation to the public to subscribe for any shares in or debentures of the company; and
  4. prohibits any invitation to the public to deposit money with the company for fixed periods or payable at call, whether bearing or not bearing interest.