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MASB issues narrow-scope amendments to Standards (23 January 2015)

The Malaysian Accounting Standards Board (MASB) today has issued the following pronouncements:

(1) Malaysian Financial Reporting Standards (MFRSs)

  • Disclosure Initiative (Amendments to MFRS 101)
  • Investment Entities: Applying the Consolidation Exception (Amendments to MFRS 10, MFRS 12 and MFRS 128)

(2) Financial Reporting Standards (FRSs)

  • Disclosure Initiative (Amendments to FRS 101)
  • Investment Entities: Applying the Consolidation Exception (Amendments to FRS 10, FRS 12 and FRS 128)  

They are equivalent to the International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB).

ABOUT THE PRONOUNCEMENTS

Disclosure Initiative (Amendments to MFRS 101)

The Amendments aim to improve the effectiveness of disclosures and are designed to encourage companies to apply professional judgement in determining the information (including where and in what order) to be disclosed in the financial statements.

The Amendments mark the completion of the five, narrow-focus improvements to disclosure requirements that the IASB had identified following its 2013 Discussion Forum. 

The Amendments are effective for annual periods beginning on or after 1 January 2016, with early application permitted.

Similar Amendments are also made to FRS 101 Presentation of Financial Statements.

Investment Entities: Applying the Consolidation Exception (Amendments to MFRS 10, MFRS 12 and MFRS 128)

The Amendments aim to address issues that have arisen in the application of the consolidation exception for investment entities. The Amendments also provide relief in particular circumstances, which will reduce the costs of applying the Standards.

The Amendments clarify the exemption from preparing consolidated financial statements for an intermediate parent entity, a subsidiary providing services that relate to the parent's investment activities, application of the equity method by a non-investment entity investor to an investment entity investee and the disclosures required.

The Amendments apply retrospectively and are effective for annual periods beginning on or after 1 January 2016, with early application permitted.

Similar Amendments are also made to FRSs.

Printed copies of the Amendments to MFRSs / FRSs are available free of charge at the MASB office and electronic copies are available for download at http://www.masb.org.my.

The “Notice of Issuance” can be downloaded here

END

For enquiries, please contact:

Malaysian Accounting Standards Board
Suites 5.2, Level 5

Wisma UOA Pantai
No. 11, Jalan Pantai Jaya
59200 Kuala Lumpur

Tel: 03-2240 9200

Fax: 03-2240 9300

Email: technical@masb.org.my