MASB issues Annual Improvements to MFRS Accounting Standards—Volume 11 for enhanced consistency (19 September 2024)


MASB issues Annual Improvements to MFRS Accounting Standards—Volume 11 for enhanced consistency

The Malaysian Accounting Standards Board (MASB) today issued "Annual Improvements to MFRS Accounting Standards—Volume 11" which contains a collection of narrow-scope amendments to the following:

  • MFRS 1 First-time Adoption of Malaysian Financial Reporting Standards;

  • MFRS 7 Financial Instruments: Disclosures and Guidance on Implementing MFRS 7;

  • MFRS 9 Financial Instruments;

  • MFRS 10 Consolidated Financial Statements; and

  • MFRS 107 Statement of Cash Flows.

The Annual Improvements to MFRS Accounting Standards—Volume 11 is word-for-word the Annual Improvements to IFRS Accounting Standards—Volume 11 issued by the International Accounting Standards Board (IASB).

ABOUT THE PRONOUNCEMENTS 

The pronouncements comprise the following amendments:

  • Hedge accounting by a first-time adopter (Amendments to MFRS 1) – Paragraphs B5-B6 are amended to improve their consistency with the requirements in MFRS 9 and cross-references are added to improve the understandability of MFRS 1.

  • Gain or loss on derecognition (Amendments to MFRS 7) – Paragraph 38 is amended to update an obsolete cross-reference to paragraph 27A.

    The guidance on implementing MFRS 7 is also amended to address an inconsistency between paragraph 28 of MFRS 7 and paragraph IG14 and to clarify that the guidance does not necessarily illustrate all the requirements of MFRS 7.

  • Lessee derecognition of lease liabilities and transaction price (Amendments to MFRS 9) – Paragraph 2.1(b)(ii) of MFRS 9 is amended to resolve a potential confusion for a lessee applying the requirements to a lease liability that has been extinguished in accordance with the Standard. The amendments also remove the reference to ‘transaction price’ (as defined in MFRS 15 Revenue from Contracts with Customers) from Appendix A of MFRS 9.

  • Determination of a ‘de facto agent’ (Amendments to MFRS 10) – The amendments resolve an inconsistency between paragraphs B73 and B74 of the Standard and clarify that the relationship described in paragraph B74 is just one example of a circumstance in which judgement is required to determine whether a party is acting as a de facto agent.

  • Cost method (Amendments to MFRS 107) – Paragraph 37 of MFRS 107 is amended to replace the term ‘cost method’ with ‘at cost’.

An entity shall apply those amendments for annual reporting periods beginning on or after 1 January 2026. Earlier application is permitted.

The “Notice of Issuance” can be downloaded here

END

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