MASB issues amendments to the disclosure standard and a major multi-section update to MPERS

The Malaysian Accounting Standards Board (MASB) today issued the following pronouncements for application in Malaysia:

• Amendments to MFRS 19 Subsidiaries without Public Accountability: Disclosures; and

• The revised Malaysian Private Entities Reporting Standard (2025) [MPERS (2025)].

ABOUT THE PRONOUNCEMENTS 

MASB APPROVED ACCOUNTING STANDARD FOR ENTITIES OTHER THAN PRIVATE ENTITIES

Amendments to MFRS 19 Subsidiaries without Public Accountability: Disclosures

The Amendments is identical to Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures issued by the IASB. 

MFRS 19, issued by the MASB in July 2024, allows eligible subsidiaries to apply MFRS Accounting Standards with reduced disclosures. When the Standard was initially issued, it did not contain reduced versions of disclosure requirements that had been added or amended after February 2021.

Amendments to MFRS 19 incorporates reduced disclosure requirements for new and amended MFRS Accounting Standards issued by the MASB as listed below, which reflect the changes that take effect up to 1 January 2027, when MFRS 19 will be applicable:

• MFRS 18 Presentation and Disclosure in Financial Statements

• Supplier Finance Arrangements (Amendments to MFRS 107 and MFRS 7)

• International Tax Reform—Pillar Two Model Rules (Amendments to MFRS 112)

• Lack of Exchangeability (Amendments to MFRS 121)

• Amendments to the Classification and Measurement of Financial Instruments (Amendments to MFRS 9 and MFRS 7)

MASB APPROVED ACCOUNTING STANDARD FOR PRIVATE ENTITIES

Malaysian Private Entities Reporting Standard (2025) [MPERS (2025)]

MPERS (2025) is the revised Malaysian Private Entities Reporting Standard. It introduces significant improvements that will enhance the quality of financial statements for private entities across the country.

The revised MPERS is based on the third edition of the IFRS for SMEs Accounting Standard issued by the International Accounting Standard Board (IASB). It introduces updates to nearly all sections of the Standard, with significant changes in the following:

• Section 2 Concepts and Pervasive Principles 

• Section 9 Consolidated and Separate Financial Statements 

• Section 11 Basic Financial Instruments (renamed Financial Instruments) 

• New Section 12 Fair Value Measurement 

• Section 19 Business Combinations and Goodwill

• Section 23 Revenue (renamed Revenue from Contracts with Customers) 

Tan Sri Mohd Nasir Ahmad, MASB Chairman said:

Apart from its clearly defined scope - which limits applicability to entities that meet the definition of a private entity - MPERS (2025) prescribes the same requirements as the third edition of the IFRS for SMEs Accounting Standard issued by the IASB in February 2025. While both sets target entities without public accountability, MPERS applies specifically within the Malaysian regulatory context to entities classified as private entities. In contrast, the IFRS for SMEs Accounting Standard adopts a broader, principle-based scope, referring to qualifying entities as small and medium-sized entities that do not have public accountability. The issuance of MPERS (2025) reaffirms MASB’s commitment to advancing Malaysia’s financial reporting framework for private entities”.

MPERS (2025) is effective for annual periods beginning on or after 1 January 2027, with early application permitted.

Access the “Notice of Issuance” here.

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