Advantages Of Malaysian Financial Reporting Standards

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1.0 Malaysian Financial Reporting Standards (MFRS) Framework 1.1 INTRODUCTION ON MFRS FRAMEWORK The Malaysian Financial Reporting Framework inculcates 3 prime areas which are the Malaysian Financial Reporting Standards (MFRS), International Committee Interpretations (IC Interpretations), and Conceptual Framework for Financial Reporting (Conceptual Framework). The concept of MFRS Framework is MFRS Framework which comprises of standards issued by IASB that are effective on 1/1/2002 and the new standards issued by IASB that will be effective after 1/1/2012. MFRS Framework is a fully IFRS-compliant framework. Reporting entities that adopt the MFRS framework will be able to expressly assert that their financial statements are in full compliance…show more content…
With the implementation of MASB, it adopted 24 of the extant International Accounting Standards (IAS) and Malaysian Accounting Standards (MAS). From there on, MASB started issuing a number of new standards as well as revised ones. These were known as MASB Standards. MASB was changed to Financial Reporting Standard (FRS) in 2005. MASB introduced a 2-tier system in 2006. The non-private companies use FRS and the smaller companies (called private entities) are allowed to choose between using the FRS or the Private Entity Reporting Standards (PERS). The PERS is relatively simpler than FRS. In 2008, FRF and MASB come out with a plan to fully converge with IFRS beginning 1 January 2012. MASB will adopt all the accounting standards issued under International Financial Standards Board (IFRSB) under full convergence. With this move, MASB issued a new set of MASB approved standards called the Malaysian Financial Reporting Standards (MFRS) to replace the FRS beginning 1 January…show more content…
MASB adopts the following numbering system for MFRS. 1.3.2 Purpose of MFRS MFRS plays an important role in ensuring an entity’s first MFRS financial statement, and its interim financial report for part of the covered by those financial statement, contain high quality information that is transparent for users and comparable over all periods presented. It also provides a suitable starting point for accounting in accordance period with Malaysian Financial Reporting Standards (MFRSs), as well as be generating at a cost that does not exceed the benefits. 1.3.3 Compliance with MFRS In accordance to section 65 of the FSA, a financial institution shall ensure that it prepares its financial statements in respect with the MFRS which is subjected to the requirements on the application of MFRS and shall disclose a statement to that effect in the financial statements. So as to give a true and fair view of the state of affairs and of the results of the business of the financial institution, the board of directors is responsible for ensuring that the financial statements are drawn up. The board of directors are persons responsible for managing the affairs of the financial institution which are in conjunction with the fiduciary and statutory duties.Therefore, the board shall be satisfied that a sound financial reporting structure is in place to ensure the integrity and credibility of the financial
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