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MASB Approved Accounting Standards for Private Entities

private entity is a private company as defined in section 2 of the Companies Act 2016 that –

is not itself required to prepare or lodge any financial statements under any law administered by the Securities Commission Malaysia or 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 Malaysia or Bank Negara Malaysia.

Notwithstanding the above, a private company that is itself, or is a subsidiary or associate of, or jointly controlled by, an entity that is a management company as defined in section 2 of the Interest Schemes Act 2016 is not a private entity.

The meaning of ‘subsidiary’, ‘associate’ and ‘jointly controlled’ are as respectively defined and explained in MFRS 10 Consolidated Financial Statements / FRS 10 Consolidated Financial Statements, MFRS 128 Investments in Associates and Joint Ventures / FRS 128 Investments in Associates and Joint Ventures and MFRS 11 Joint Arrangements FRS 11 Joint Arrangements.

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

Private entities shall comply with either:

1.    Malaysian Private Entities Reporting Standard (MPERS) in their entirety for financial statements with annual periods beginning on or after 1 January 2016; or

2.    Malaysian Financial Reporting Standards (MFRS) in their entirety.

A Private Entity that has in the alternative applied FRSs as its financial reporting framework shall disclose when it will first present financial statements in accordance with the MFRS Framework or the Malaysian Private Entity Reporting Standard (MPERS). The entity shall not revert to apply FRSs if it has adopted the MFRS Framework or the MPERS even if it meets the criteria to do so (see Notice of Issuance dated 28 October 2015) 

Private entities that have applied FRSs shall apply either MFRS or the MPERS for annual periods beginning on or after 1 January 2018.

Malaysian Private Entities Reporting Standard (MPERS)

The MPERS is a self-contained Standard that is applicable only to private entities. The accounting requirements of the MPERS are word-for-word the IFRS for SMEs (International Financial Reporting Standards for Small and Medium-sized Entities) issued by the IASB except for the requirements on Property Development Activities (Section 34 Specialised Activities).

The MPERS includes an option for entities to apply the recognition and measurement requirements of MFRS 139 Financial Instruments: Recognition and Measurement. If an entity chooses this option, the applicable version of MFRS 139 is available here.

MPERS Glossary in Bahasa Malaysia is available here.

Comparative analysis of the MPERS with the PERS and MFRS frameworks is available here.

To purchase a copy of MPERS, please click here. To know more about MPERS, please click here.

Implementation support

The IFRS Foundation is developing stand-alone modules, one for each section of the 2015 version of the IFRS for SMEs Standard. The IFRS for SMEs modules contain a copyright notice and terms for the allowed use of the materials. Please ensure that you read the notice and terms before using the materials. For more details, please visit IASB website at http://www.ifrs.org/

Terms of Use for Users

1.      The IFRS Foundation and the Malaysian Accounting Standards Board grant users of the Malaysian Private Entities Reporting Standard (MPERS) (Users) the permission to reproduce MPERS for 

(i) the User’s Professional Use, or

(ii) private study and education

Professional Usemeans use of MPERS in the User’s professional capacity in connection with the business of providing accounting services for the purpose of application of MPERS for preparation of financial statements and/or financial statement analysis to the User’s clients or to the business in which the User is engaged as an accountant.

For the avoidance of doubt, the abovementioned usage does not include any kind of activities that make (commercial) use of MPERS other than direct or indirect application of MPERS, such as but not limited to commercial seminars, conferences, commercial training or similar events.

2.           For any application that falls outside Professional Use, Users shall be obliged to contact the Malaysian Accounting Standards Board and the IFRS Foundation for a separate individual licence under terms and conditions to be mutually agreed.

3.       Except as otherwise expressly permitted in this notice, Users shall not, without prior written permission of the Malaysian Accounting Standards Board and the Foundation, have the right to license, sublicense, transmit, transfer, sell, rent, or otherwise distribute any portion of MPERS to third parties in any form or by any means, whether electronic, mechanical or otherwise either currently known or yet to be invented.

4.       Users are not permitted to modify or make alterations, additions or amendments to or create any derivative works from MPERS, save as otherwise expressly permitted in this notice.

5.       For further details about licensing the IFRS Foundation’s intellectual property please contact licences@ifrs.org