Accounting system is an organized set of manual and computerized accounting methods, procedures and controls established to gather, record, classify, analyze, summarize, interpret and present accurate and timely financial data for management decisions.
The Financial Reporting Foundation (FRF) and the Malaysian Accounting Standards Board (MASB) are established under the Financial Reporting Act 1997. One of the roles of the FRF is to oversee the operation and funding arrangements for the MASB whilst the MASB is responsible for the development of accounting standards in Malaysia.
Comparison between Malaysia’s Reporting Standards and International Reporting Standards
|
FRS / IC Interpretation
|
IFRS/IAS/SIC Interpretation
|
Overall Comparison
|
|
FRS 1 (issued in 2005) First Time Adoption of Financial Reporting Standards
|
IFRS1(revised in 2005) First time Adoption of International Financial Reporting Standards
|
FRS 1 is consistent with IFRS1
|
|
FRS2 (issued in 2005) Share based Payment
|
IFRS2 (amended in 2005) Share based Payment
|
FRS2 is consistent with IFRS 2 except for the effective date of the transitional provision for equity settled share based payment transactions, where entity shall apply FRS 2 to grants of shares, share options or other equity instruments that were granted after 31 December 2004 and had not yet vested at the effective date of the FRS (FRS 2.53)
|
|
FRS 3 (issued in 2005) Business Combinations
|
FRS 3 (issued in 2005) Business Combinations
|
FRS 3 is consistent with IFRS 3 except for the effective date of the transitional provision where entity applies FRS 3 for accounting for (FRS 3.78):
Business combinations with agreement date on or after 1January 2006.
Goodwill arising from a business combination with agreement date on or after 1 January 2006 or;
Any excess of the acquirer's interest in the net fair value of the acquiree's identifiable assets, liabilities and contingent liabilities over the cost of a business combination with agreement date on/after 1 January 2006.
|
|
FRS 101 (revised in 2005) Presentation of Financial Statements
|
IAS 1 (revised in 2005) Presentation of Financial Statements
|
FRS 101 is consistent with IAS 1 (2003) and not IAS 1 (2005).Amendments to IAS 1 in 2005 on "Capital Disclosures" have not been incorporated into FRS 101
|
|
FRS 102 (revised in 2005) Inventories
|
FRS 102 (revised in 2005) Inventories
|
FRS 102 is consistent with IAS2
|
|
FRS 107 (amended in 2005) Cash Flow Statements
|
FRS 107 (amended in 2005) Cash Flow Statements
|
FRS 107 is consistent with IAS 7
|
|
FRS 110 (revised in 2005) Events After the Balance Sheet Date
|
FRS 110 (revised in 2005) Events After the Balance Sheet Date
|
FRS 110 is consistent with IAS 10
|
|
FRS 133 (revised in 2005) Earnings Per Share
|
FRS 133 (revised in 2005) Earnings Per Share
|
FRS 133 is consistent with IAS 33
|
|
FRS 136 (revised in 2005) Impairment of Assets
|
FRS 136 (revised in 2005) Impairment of Assets
|
FRS 136 is consistent with IAS 36
|
|
IC Interpretation 112(issued in 2005) Consolidation Special Purpose Entities
|
IC Interpretation 112(issued in 2005) Consolidation Special Purpose Entities
|
IC Interpretation 112 is consistent with SIC 12
|
|
IC Interpretation113(issued in 2005) Jointly Controlled Entities-Non Monetary Contributions by Venturers
|
SIC 13(amended in 2005) Jointly Controlled Entities-Non Monetary Contributions by Venturers
|
IC Interpretation 113 is consistent with SIC 13
|
|
IC Interpretation 115 (issued on 2005) Operating Leases Incentives
|
SIC 15(amended in 2005) Operating Leases Incentives
|
IC Interpretation 115 is consistent with SIC 15
|
IAS – International Accounting Standard
SIC - Standing Interpretations Committee
IC - Intellectual Capital
FRS - Financial Reporting Standards
IFRS - International Financial Reporting Standards
IFRS - International Financial Reporting Standards
Last Updated on: 17-11-2009
