In this Insights, we give an overview of the accounting implications of the following topical issues that companies with 31 December 2024 year end might consider when preparing their MFRS financial statements
MFRS 8 paragraph 23 requires an entity to disclose certain specified items of profit or loss if these are included in the measure of segment profit or loss reviewed by the chief operating decision maker (“CODM”), or are otherwise regularly provided to the CODM (even if not included in that measure of segment profit or...
MFRS 19 ‘Subsidiaries without Public Accountability: Disclosures’ is an optional standard which was developed in response to feedback from stakeholders, to allow eligible subsidiaries to provide reduced disclosures in their financial statements.
On 15 July 2024, the Malaysian Accounting Standards Board (“MASB”) issued targeted amendments to MFRS 9 ‘Financial Instruments’ and MFRS 7 ‘Financial Instruments: Disclosures’
The MFRS disclosure checklist supports preparers to check the compliance of the June 2024 MFRS financial statements with the MFRS disclosure requirements.
In response to investors’ concerns about the comparability and transparency of entities’ performance reporting, the Malaysian Accounting Standard Board (“MASB”) issued a new standard, MFRS 18 ‘Presentation and Disclosure in Financial Statements’ in June 2024 that replaces MFRS 101 ‘Presentation of Financial...
In this Insights, we give an overview of the accounting implications of the following topical issues that companies with 30 June 2024 year end might consider when preparing their MFRS financial statements
Supplier finance arrangements provide companies with solutions for managing working capital. As the use of these solutions expands, it has become increasingly important that investors have transparency over the effect on a company’s liabilities, cash flows and exposure to liquidity risk.
In this Snapshot, we discuss some of the key provisions surrounding the following new standard and amendments (effective on or after 1 January 2024) which entities with 31 December 2024 year end applying for the first time
In this Insights, we give an overview of the accounting implications of the following topical issues that companies with 31 March 2024 year end might consider when preparing their MFRS financial statements
We have compiled a list of key reminders on what not to miss to assist preparers in ensuring the following accounting items are properly reflected in the financial statements.
2023 year in review, Singapore, Southeast Asia and Hong Kong
This disclosure checklist has been updated to take into account MFRS and IC Interpretations issued or amended by MASB up to 16 January 2024.
In this Insights, we give an overview of the accounting implications of the following topical issues that companies with 31 December 2023 year end might consider when preparing their MFRS financial statements
In order to achieve the aims of the Paris Agreement and limit the impact of climate change on the planet, entities worldwide are in the process of re-assessing their business models and strategy..
MFRS 121 ‘The Effects of Changes in Foreign Exchange Rates’ sets out the exchange rate that an entity uses when it reports foreign currency transactions in the functional currency or translates the results of a foreign operation in a different currency.
New disclosures for supplier finance arrangements introduced by amendments to MFRS 7 and MFRS 107 effective in 2024.
This disclosure checklist has been updated to take into account MFRS and IC Interpretations issued or amended by MASB up to 18 August 2023. Disclosure requirements resulting from standards and interpretations that have been issued and are effective for annual periods beginning on or after 1 July 2022 but before 1...
In this Insights, we give an overview of the accounting implications of the following topical issues that companies with 30 June 2023 year end might consider when preparing their MFRS financial statements.
In recent years, there has been an increased use of supplier finance (or also commonly referred as reverse factoring) arrangements. In December 2020, the IFRS Interpretation Committee (the “Committee”) issued an agenda decision that provides guidance on the presentation and disclosures in respect of a reverse factoring...
In October 2021, more than 130 countries (including Malaysia and representing more than 90% of global GDP) agreed to implement a minimum tax regime for multinationals - Pillar Two.
A sale and leaseback is a transaction in which the owner of an asset sells the asset and leases that asset back from the buyer for a period of time. The seller-lessee must determine if the transaction qualifies as a sale for which a gain (or loss) is recognised, or if the transaction is treated as a collateralised...
MFRS 17 ‘Insurance Contracts’ is mandatory for annual reporting periods beginning on or after 1 January 2023, with restatement of comparatives for the previous reporting period (that is, from 1 January 2022 for entities with 31 December 2023 year-ends). MFRS 17 applies to insurance contracts regardless of the entity...
In this Snapshot, we discuss some of the key provisions surrounding the following new standard and amendments (effective on 1 January 2023) which entities with 31 December 2023 year end applying for the first time.
In this Insights, we give an overview of the accounting implications of the following topical issues that companies with 31 March 2023 year end might consider when preparing their MFRS financial statements
What are the matters to look out for in MFRS 136 impairment testing?
Proposed amendments to IAS 12 : Global implementation of Pillar Two
Global implementation of Pillar Two : Proposed amendments to IAS 12
This disclosure checklist has been updated to take into account MFRS and IC Interpretations issued or amended by MASB up to 15 December 2022
In response to the concerns of the stakeholders on applying the 2020 Amendments, the International Accounting standards Board (“IASB”) published the Exposure Draft: Non-current Liabilities with Covenants (proposed amendments to IAS 1) in November 2021. Read further in our Snapshot.
There are a number of narrow-scope amendments and annual improvements on MFRS effective 1 January 2022 as highlighted in Appendix I at the end of this publication.
In a sale and leaseback transaction, one entity (the seller-lessee) transfers an asset to another party (the buyer-lessor) and leases back the right to use of that same asset.
The MFRS disclosure checklist supports preparers to check the compliance of the December 2021 MFRS financial statements with the MFRS disclosure requirements.
In this Insights, we give an overview of the accounting implications of the following topical issues that entities might consider for their coming financial year ends:
On 1 July 2021, the Securities Commissions Malaysia (“SC”) amended the Capital Markets and Services Act 2007 (“CMSA”) to allow Bursa Malaysia Securities Berhad (“Bursa Malaysia” or “the Exchange”) to assume ACE Market prospectus review and registration functions from the SC, making the Exchange the one-stop centre for...
Supplier financing is often referred to as reverse factoring. It involves three parties: a supplier who supplies goods; the buyer; and a financier (‘bank’). The bank offers to facilitate payments of the trade payables arising between the buyer and supplier, and it might provide finance so that the supplier can be paid...
In a sale and leaseback transaction, one entity (the seller-lessee) transfers an asset to another party (the buyer-lessor) and leases back that same asset.
The Securities Commission Malaysia (”SC”) recently issued the revised Equity Guidelines (“Guidelines”) which provides guidance on (a) issues and offerings of equity securities which falls under Section 212 of the CMSA; (b) listings of corporations and quotations of securities on the Main Market for Bursa Malaysia...
This disclosure checklist has been updated to take into account MFRS and IC Interpretations issued or amended by MASB up to 30 November 2020.
As a result of the COVID-19 pandemic, many lessees are seeking rent concessions from lessors such as rent holidays or temporary rent reductions. In view of this, we have also included in this Snapshot the key provisions and related impacts on the amendments to MFRS 16 “Leases” on COVID-19-related rent concessions.
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The new MFRS 16 “Leases”, effective for annual reporting periods beginning on or after 1 January 2019, provides lessees with an option of two transition methods: either (1) full retrospective; or (2) simplified retrospective. This guide explains the MFRS 16 requirements associated with each transition method in the...
Anyone employed in a Malaysian company whose job description encompasses the words “accounting” and “financial reporting” would have heard of the new lease accounting standard: MFRS 16 Leases.
Combined financial statements are prepared by combining the financial statements of separate entities, segments or components that are under common control, but that are not necessarily part of a legal sub-group.
Historically, few companies have had a lease system and harmonised lease administration and lease management processes. That’s why, when International Financial Reporting Standard (IFRS) 16 Leases became effective on 1 January 2019, it was expected to have substantial impact on lessees’ financial reporting, asset...
Kar Wai Siew
Capital Markets and Accounting Advisory Services Leader, PwC Malaysia
Tel: +60 (3) 2173 0740
Tiang Woon Meng
Assurance Partner and Technology, Media and Telecommunications Leader, PwC Malaysia
Tel: +60 (3) 2173 1152
