Accounting Standard for Malaysian SMEs to include latest improvements
| Technical Bulletin |
| Title |
: |
Accounting Standard for Malaysian SMEs to Include Latest Improvements |
| Access No |
: |
69/2015 |
| Edition |
: |
|
| Publisher |
: |
|
| Issued By |
: |
MIA |
| Remarks |
: |
|
| Content |
|
| |
| 11 Nov 2015 |
Circular No.69/2015 |
|
| |
TO ALL ACCOUNTANTS
|
ACCOUNTING STANDARD FOR MALAYSIAN SMES TO INCLUDE LATEST IMPROVEMENTS
|
The Malaysian Accounting Standards Board (“MASB”) has, on 28 October 2015, issued limited amendments to the Malaysian Private Entities Reporting Standard (“MPERS”). These amendments shall be effective for annual periods beginning on or after 1 January 2017, but early application is permitted.
Changes to MPERS
Effective for annual periods beginning on or after 1 January 2016, the MPERS is identical to the International Financial Reporting Standard for Small and Medium-sized Entities (“IFRS for SMEs”) except for the requirements on property development activities and some terminology changes.
The most significant change is that private entities are allowed the option of revaluing property, plant and equipment. Private entities that are applying the revaluation model under the existing Private Entities Reporting Standards will certainly welcome this amendment because they can continue applying the revaluation policy when they adopt the MPERS.
The other amendments mainly clarify existing requirements or add supporting guidance, rather than change the underlying requirements in the MPERS.
Private entities that wish to apply the amendments early, instead of for annual periods beginning on or after 1 January 2017, must apply the amendments in their entirety.
The MPERS defines a private entity as a private company incorporated under the Companies Act 1965 that is not a company required by the Securities Commission or Bank Negara to prepare or lodge any financial statements. In addition, a private entity is not a subsidiary or associate of, or jointly controlled by, an entity that is required by the Securities Commission or Bank Negara to prepare or lodge any financial statements.
Kindly refer to MASB's website at www.masb.org.my for further details.
Please be guided accordingly.
HO FOONG MOI
Chief Executive Officer |