MASB:FRS Now Optional for Private Companies

Press Release From MASB (Thu,23 Feb 2006)

“Financial Reporting Standards are now optional for private companies with the announcement of two sets of accounting standards by the Malaysian Accounting Standards Board (MASB). This will bring cheer to a few thousands of small and medium sized entities (SME) in Malaysia.”
Salient Points Extracted are:

• Now there can be two (2) sets of standards namely Financial Reporting Standards (FRS) and Private Entity Reporting Standards (PERS).

• FRS are for companies such as publicly listed companies,their subsidiaries,associates,or companies jointly controlled by them. PERS are for private entities. Private entities are not affected by the revisions and the requirements of the new standards issued under the FRS regime. Private entities are given the option to use FRS

• MASB recognised that privately-run companies have different information needs. The Board is also sensitive to the burden of compliance by these companies if they were to comply with international financial reporting standards.

• Essentially,PERS are MASB Standards issued by the Board prior to 1 January 2005 except for the removal of certain Standards. In addition,PERS include an amendment regarding the applicability and compliance with the standards effective 1 January 2006.

• If an entity chooses FRS or PERS,it must comply with the full set of FRS or PERS respectively in their entirety.

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