MASB issues narrow-scope amendments to MFRS 121

The Malaysian Accounting Standards Board (MASB) today issued a Translation to a Hyperinflationary Presentation Currency which amends MFRS 121 The Effects of Changes in Foreign Exchange Rates (“the amendments”).  

The amendments are identical to Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates) issued by the International Accounting Standards Board (IASB). 

ABOUT THE AMENDMENTS 

The amendments clarify how companies should translate financial statements from a non-hyperinflationary currency into a hyperinflationary presentation currency. These narrow-scope amendments aim to improve the usefulness of the resulting financial information in a cost-effective manner. The amendments are expected to reduce diversity in practice and provide a clearer basis for reporting in a hyperinflationary economy.

The amendments to MFRS 121 are effective for annual reporting periods beginning on or after 1 January 2027. Earlier application is permitted. 

Access the “Notice of Issuance” here.

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