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Three draft IC interpretations for comments (1 March 2006)

The Malaysian Accounting Standards Board (MASB) has released 3 draft IC interpretations for comments by interested parties.

The 3 draft IC Interpretations are:

  • IC Interpretation 1: Changes in Existing Decommissioning, Restoration & Similar Liabilities
  • IC Interpretation 2: Members' Shares in Co-operative Entities & Similar Instruments
  • IC Interpretation 5: Rights to Interests arising from Decommissioning, Restoration & Environmental Rehabilitation Funds

IC Interpretation 1, Changes in Existing Decommissioning, Restoration and Similar Liabilities, requires changes in the liability resulting from changes in cash flows or discount rates to be capitalised in full and depreciated prospectively over the life of the item to which they relate. It also requires the unwinding of the discount to be recognised in profit or loss as a finance cost as it occurs.

IC Interpretation 2, Classification of Members' Shares in Co-operative Entities, is a direct response to concerns expressed by constituents that the classification of members' shares in co-operative entities under Financial Reporting Standards 132 Financial Instruments: Disclosure and Presentation is unclear.

IC Interpretation 5, Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds, the interpretation explains how to treat expected reimbursements from funds set up to meet the costs of decommissioning plant or equipment or in undertaking environmental restoration or rehabilitation.

We appreciate your comments to be received in writing or electronically by 31 May 2006.