MASB issues new presentation and disclosure Standard to improve companies’ reporting of financial performance (14 June 2024)


MASB issues new presentation and disclosure Standard to improve companies’ reporting of financial performance

The Malaysian Accounting Standards Board (MASB) has issued a new Standard, MFRS 18 Presentation and Disclosure in Financial Statements

MFRS 18 is word-for-word IFRS 18 Presentation and Disclosure in Financial Statements issued by the International Accounting Standards Board (IASB). 


ABOUT MFRS 18

The newly introduced Standard aims to provide better information about companies’ financial performance. MFRS 18 Presentation and Disclosure in Financial Statements replaces MFRS 101 Presentation of Financial Statements. It retains many requirements from MFRS 101 without modification with some of the requirements now moved to MFRS 108 Basis of Preparation of Financial Statements, including the requirement that financial statements that have been prepared in accordance with MFRS Accounting Standards shall also make an explicit and unreserved statement of compliance with IFRS Accounting Standards.

Previously, the lack of detailed requirements in MFRS 101 resulted in diverse practices among entities, with each defining their own subtotals and performance measures. This variation made it challenging for investors to analyse and compare companies’ financial performance effectively. 

MFRS 18 aims to enhance financial reporting quality by:

• requiring defined subtotals in the statement of profit or loss;

• requiring disclosures about management-defined performance measures; and

• adding new principles for aggregation and disaggregation of information.

The MASB expects these improvements will enable investors to make more informed decisions leading to better allocations of capital that will contribute to long-term financial stability.

MFRS 18 will become effective for annual reporting periods beginning on or after 1 January 2027, with earlier application permitted. MFRS 101 shall be withdrawn on the application of MFRS 18.

The “Notice of Issuance” can be downloaded here.

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For enquiries, please contact:

Malaysian Accounting Standards Board
Unit 13A-1, Menara MBMR
1, Jalan Syed Putra
58000 Kuala Lumpur
Tel: 03-2273 3100
Fax: 03-2273 9400
Email: technical@masb.org.my