MASB publishes amendments to Insurance Standards and defers the effective date of Amendment to MFRS 101 (17 August 2020)


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

  • Amendments to MFRS 17 Insurance Contracts 
  • Extension of the Temporary Exemption from Applying MFRS 9 (Amendments to MFRS 4 Insurance Contracts)
  • Classification of Liabilities as Current or Non-current—Deferral of Effective Date 

The above pronouncements are word-for-word the respective pronouncements issued by the International Accounting Standards Board (IASB). 

The “Notice of Issuance” can be downloaded here.

ABOUT THE PRONOUNCEMENTS

Amendments to MFRS 17 Insurance Contracts

MFRS 17 Insurance Contracts was issued in August 2017. In response to many of the concerns and challenges raised by companies implementing MFRS 17, the Amendments are issued to continue supporting the implementation by reducing costs and making it easier for companies to explain their results when they apply the Standard. The Amendments are designed to minimise the risk of disruption to implementation already underway and do not change the fundamental principles of the Standard or reduce the usefulness of information for investors.

Amendments to MFRS 17 also defers the effective date of MFRS 17 by two years, to annual reporting periods beginning on or after 1 January 2023. The decision to defer the effective date will enable companies to implement the new Standard in a timely manner which MASB considers to be beneficial for investors, preparers and other stakeholders.

Extension of the Temporary Exemption from Applying MFRS 9 (Amendments to MFRS 4 Insurance Contracts)

The Amendments to MFRS 4 extends the expiry date for the temporary exemption from applying MFRS 9 Financial Instruments by two years to annual periods beginning on or after 1 January 2023. The extension maintains the alignment between the expiry date of the temporary exemption and the effective date of MFRS 17, which replaces MFRS 4.

Classification of Liabilities as Current or Non-current—Deferral of Effective Date 

The Amendment defers by one year the effective date of Classification of Liabilities as Current or Non-current (Amendments to MFRS 101 Presentation of Financial Statements). 

The said MFRS 101 amendments were issued by MASB on 16 March 2020, effective for annual reporting periods beginning on or after 1 January 2022. However, in response to the COVID-19 pandemic, the effective date is now deferred to 1 January 2023 to provide companies with more time to implement any classification changes resulting from the amendments.

There are no changes to the original amendments other than the deferral of the effective date. 

END

For enquiries, please contact:

Malaysian Accounting Standards Board
Unit 13A-1, Menara MBMR
No. 1, Jalan Syed Putra
58000 Kuala Lumpur
Tel: 03-2273 3100
Fax: 03-2273 9400
Email: technical@masb.org.my