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MASB releases exposure draft to amend 10 accounting standards (15 March 2007)

MASB has released Exposure Draft ED 55 Proposed Amendments to Financial Reporting Standards to professional accounting bodies, regulators, users and other interested parties for comments.

The purpose of this exposure draft is to remove the remaining differences between 10 existing Financial Reporting Standards (FRSs) and International Accounting Standards (IASs) to eventually result in these FRSs being virtually identical to the respective IASs, says MASB executive director Dr Nordin Mohd Zain. 

Prior to 2005 MASB made improvements to certain international standards by adding explanation, guidance and examples for clarity or by amending certain provisions to cater for local circumstances before the standards were issued for application in Malaysia. This was done to broaden the content of the standards to cover domestic and regulatory issues and to provide guidance to the local constituents for topics not addressed in the IASs.

Dr Nordin says MASB has decided to review standards on Cash Flow Statements, Construction Contracts, Income Taxes, Revenue, Employee Benefits, Accounting for Government Grants and Disclosure of Government Assistance, Borrowing Costs, Accounting and Reporting by Retirement Benefit Plans, Interim Financial Reporting and Provisions, Contingent Liabilities and Contingent Assets with the view to converge them with the international standards.

He added that in line with the policy of convergence with International Financial Reporting Standards (IFRSs) and based on experience in implementing FRSs, MASB has decided to make FRSs issued prior to 2005 the same as the respective IASs. MASB considered this to be necessary in order to enjoy the full benefit of convergence.

"MASB believes that converging with IFRSs is the way forward and that there are benefits of convergence as Malaysia puts itself on a global screen for investments and trade," Nordin said.

Until the revised standards become effective, the requirements of the current version of the relevant FRSs shall remain in force.

Interested parties, including the business communities, are encouraged to study ED 55 and provide feedback to MASB by 16th April 2007. The exposure draft and clean copies of the full revised text of the 10 proposed standards are available on MASB website at http://www.masb.org.my. The public is encouraged to provide their comments electronically through ED Online on our website. Alternatively, copies of the exposure draft are available free of charge at:

 
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Press enquiries:

For enquiries, please contact:
Dr Nordin Mohd Zain
Executive Director
Malaysian Accounting Standards Board
Email: nordin@masb.org.my