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Additional relief for first-time adopters of MFRSs (30 April 2012)

The amendments add an exception to the retrospective application of MFRSs. First-time adopters are required to apply MFRS 120 prospectively to government loans at a below-market rate of interest existing at the date of transition to MFRSs. As a result, the corresponding benefit of such loan is not recognised as a government grant and first-time adopters shall use its previous carrying amount of the loan at the date of transition to MFRSs as the carrying amount of the loan in the opening MFRS statement of financial position.

However, first-time adopters may choose to apply MFRS 120 retrospectively if the necessary information was obtained at the time of initially accounting for that loan. The option is available on a loan-by-loan basis.

Similar amendments are also made to FRS 1 First-time Adoption of Financial Reporting Standards, i.e. Government Loans (Amendments to FRS 1).

The amendments are effective for annual periods beginning on or after 1 January 2013 and early application is permitted.

Copies of the amendments are available free of charge at MASB office and can be downloaded from MASB website (http://www.masb.org.my).

Click here to download the “Notice of Issuance”.

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For enquiries, please contact:

Malaysian Accounting Standards Board
Wisma UOA Pantai, Suites 5.02, Level 5
No. 11, Jalan Pantai Jaya, 59200 Kuala Lumpur

Tel:  03-2240 9200
Fax: 03-2240 9300

Email: technical@masb.org.my