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    MFRS Reporting Framework

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    Fizbie Edly
    This document summarizes the responses to a survey conducted regarding companies' implementation of the Malaysian Financial Reporting Standards (MFRS) framework. It discusses the common challenges companies faced in areas like MFRS 1, MFRS 4, MFRS 128, MFRS 139, and new standards like MFRS 10 and MFRS 13. Audit committee chairmen helped address these issues. The Malaysian Accounting Standards Board conducted various outreach programs that participants found helpful. Suggestions for additional initiatives included providing feedback on MFRS compliance and ensuring consistent interpretation. The MASB noted its role does not include training, technical support, or enforcement but rather standard-setting and outreach.

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    MFRS Reporting Framework

    Uploaded by

    Fizbie Edly
    32 views5 pages
    This document summarizes the responses to a survey conducted regarding companies' implementation of the Malaysian Financial Reporting Standards (MFRS) framework. It discusses the common challenges companies faced in areas like MFRS 1, MFRS 4, MFRS 128, MFRS 139, and new standards like MFRS 10 and MFRS 13. Audit committee chairmen helped address these issues. The Malaysian Accounting Standards Board conducted various outreach programs that participants found helpful. Suggestions for additional initiatives included providing feedback on MFRS compliance and ensuring consistent interpretation. The MASB noted its role does not include training, technical support, or enforcement but rather standard-setting and outreach.

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    This document summarizes the responses to a survey conducted regarding companies' implementation of the Malaysian Financial Reporting Standards (MFRS) framework. It discusses the common challenges companies faced in areas like MFRS 1, MFRS 4, MFRS 128, MFRS 139, and new standards like MFRS 10 and MFRS 13. Audit committee chairmen helped address these issues. The Malaysian Accounting Standards Board conducted various outreach programs that participants found helpful. Suggestions for additional initiatives included providing feedback on MFRS compliance and ensuring consistent interpretation. The MASB noted its role does not include training, technical support, or enforcement but rather standard-setting and outreach.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    32 views5 pages

    MFRS Reporting Framework

    Uploaded by

    Fizbie Edly
    This document summarizes the responses to a survey conducted regarding companies' implementation of the Malaysian Financial Reporting Standards (MFRS) framework. It discusses the common challenges companies faced in areas like MFRS 1, MFRS 4, MFRS 128, MFRS 139, and new standards like MFRS 10 and MFRS 13. Audit committee chairmen helped address these issues. The Malaysian Accounting Standards Board conducted various outreach programs that participants found helpful. Suggestions for additional initiatives included providing feedback on MFRS compliance and ensuring consistent interpretation. The MASB noted its role does not include training, technical support, or enforcement but rather standard-setting and outreach.

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    of 5

    MFRS Reporting Framework: Post Implementation Survey Results

    Question 1 – measures taken upon transition


    What were the measures that your company had taken when transitioning from the Financial
    Reporting Standards (FRS) Framework to the MFRS Framework?
    Summary of responses

    Question 2 – continuous initiative to address dynamic requirement of MFRSs


    Accounting standards are not static but subject to continuous amendments / changes. What
    are the measures and initiatives that your company have in place to address these dynamic
    requirements?
    Summary of responses
    Question 3 – challenges faced
    What are the challenges that your company faced upon implementation of the MFRS
    Framework? Comments are most helpful if the challenges are explained with the relevant
    accounting standards.

    Summary of responses

    The commonly quoted technical areas were:


     MFRS 1 First-time Adoption of Malaysian Financial Reporting Standards - identification and
    assessment of exemption options
     MFRS 4 Insurance Contracts and accounting for Takaful operations
     MFRS 128 Investments in Associates and Joint Ventures - Treatment of dilution gains / loss in a
    jointly controlled entity
     MFRS 139 Financial Instruments: Recognition and Measurement - fair value estimation and
    impairment loss assessment
     IC 15 Agreements for the Construction of Real Estate
     Extensive disclosures

    New Standards effective 1 January 2013

     MFRS 10 Consolidated Financial Statements - application of the new definition of control


     MFRS 11 Joint Arrangements - removal of proportionate consolidated method
     MFRS 13 Fair Value Measurement – determining fair value in the absence of an active market
    Question 4 – Actions by AC Chairmen
    How did you, as the Chairman of the Audit Committee, address the issue(s) identified in
    Question 3 above?
    Summary of responses

    Question 5 – Participations in MASB Outreaches


    The MASB had organised various outreach meetings and discussion forums to provide
    briefing and updates on the new MFRS Framework. For example:
    (i) monthly teleconference with preparers and auditors to discuss issues relating to
    implementation of the MFRS Framework;
    (ii) industry-specific meetings e.g. real estate, agriculture and real estate investment
    trusts industries; and
    (iii) 2012 Asia-Oceania IFRS Conference for participants to learn about implementing
    new International Financial Reporting Standards and updates on active projects and
    plans of the International Accounting Standards Board.
    (a) Have you attended any of the MASB outreaches?
    (b) Do you find the MASB outreach activities helpful to you?

    Summary of responses
    Question 6 – Suggestions on initiatives
    What other initiatives do you think the MASB could embark on to assist your company in
    implementing the MFRS effectively?

    Summary of responses

    MASB staff’s observation

    (i) Outreach and seminars


    The MASB is not tasked to provide training to accountants as this role is played by
    other organisations, such as the Malaysian Institute of Accountants (MIA) and
    accounting bodies. The functions of the MASB are provided in the Financial Reporting
    Act 1997.
    Nonetheless, the MASB does conduct various outreach / discussion forums primarily
    focusing on new / forthcoming IFRSs with the core objective to create awareness and
    to solicit feedback from the public. These outreach / discussion forums have been
    found useful in ensuring smooth implementation of new MFRSs and will be continued.

    (ii) Practice aids


    The MASB is not tasked to set up helpline to answer technical queries nor to publish
    compliance checklist. Also, the MASB or its staff is precluded from giving advice to any
    individuals or corporations or to individual cases nor to act as an arbitrator regarding
    any issue. Resolution of matters concerning the application of the accounting
    standards should be addressed and discussed with the respective independent
    accountants, or auditors.
    For all issuances, the MASB writes to all public listed companies, associations, MIA,
    accounting bodies and other interested parties, besides publishing the news on its
    Question
    website.7 – other comments
    Are there any other comments on MFRS implementation that you think that the MASB ought
    to (iii)
    know?Standard issuance approach
    Summary of responses
    Upon adoption of the IFRS Framework, all IFRSs issued (new, revised or limited
    amendments) have to be adopted
     MASB to provide feedback by the the
    to companies MASB withof the
    degree same effective
    compliance with thedate.
    MFRS
    Therefore, the MASB
    Reporting Framework does not have an option to pick and choose or delay the issuance
    of the MFRSs. Consequently, the MASB is unable to wait and leverage on the
    experience of other jurisdictions in applying the Standards prior to adopting them for
    use in Malaysia.
    Question 7 – other comments
    Are there any other comments on MFRS implementation that you think that the MASB ought
    to know?
    Summary of responses
     MASB to provide feedback to companies the degree of compliance with the MFRS
    Reporting Framework.
     MASB to play a role in ensuring consistent interpretation and application by the
    top tiered accounting firms.

    MASB staff’s observation

    (i) Feedback on compliance with MFRS Framework


    The MASB is not in a position to provide feedback on the degree of compliance with the
    MFRS Framework as the task in ensuring compliance with approved accounting standards
    is carried out by other regulatory bodies, namely the Securities Commission, Bank Negara
    Malaysia and Syarikat Suruhanjaya Malaysia, as provided in the Financial Reporting Act
    1997.

    (ii) Consistent interpretation and application of MFRS


    MASB participates in the MIA FRSIC (Financial Reporting Standards Implementation
    Committee), that is tasked to issue implementation guidance, where required. Consensus
    issued by the FRSIC helps to ensure consistent application by the constituents in Malaysia.
    Any interpretation issues that come to the attention of the MASB will be brought to the
    attention of the IFRS Interpretation Committee. This will ensure consistent interpretation by
    all stakeholders, not only in Malaysia but across all jurisdictions that apply IFRSs.

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