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MASB releases exposure draft on The Effects of Changes in Foreign Exchange Rates - Net Investment in a Foreign Operation (19 September 2006)

The Malaysian Accounting Standards Board (MASB) has released the exposure draft of Proposed Amendment to FRS 121 The Effects of Changes in Foreign Exchange Rates Net Investment in a Foreign Operation (ED 54) for comments by the professional accounting bodies, regulators, users and other interested parties.

The proposed amendment is a result of a technical correction exposed by IASB as a Draft Technical Correction 1 Proposed Amendments to IAS 21 in Sept 2005. A technical correction addresses an issue for which it is clear that the words in a Standard do not properly convey IASB's intention or unexpected consequences of a standard that IASB would have corrected, had it been aware of them when the Standard was issued. IASB adopted the amendment in December 2005.

In commenting on the proposed amendment to FRS 121, Dr Nordin Mohd Zain, the executive director of MASB, concurred that, "Consolidated financial statements should not be dependent on the currency of the monetary item, nor on which entity within the group conducts a transaction with the foreign operation."

Interested parties, including the business communities, are encouraged to study this proposed MASB ED 54 and provide feedback to MASB by 15th October 2006. Copies of the Exposure Draft are available free of charge at:

Malaysian Accounting Standards Board
Suites 5.01-5.03, 5th Floor,
No. 338, Jalan Tuanku Abdul Rahman
50100 Kuala Lumpur
Tel: 03-27159199
Fax: 03-27159212
E-mail address: masb@masb.org.my
 
Alternatively, the Exposure Drafts are also available on MASB website at http://www.masb.org.my. The public may also provide their comments electronically through ED Online on our website.

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