Financial Reporting: Amendments to Private Entity Definition by MASB

This article discusses the amendments to private entity definition by MASB in financial reporting. It covers the narrow-scope improvements, amendments to definition, and accounting standards for private entities.

Running head: FINANCIAL REPORTING
Financial Reporting
Name of the Student
Name of the University
Author’s Note

1FINANCIAL REPORTING
Issue of
Narrow-Scope
Amendments to
Pension
Accounting by
MASB:
On 15 March
2018, the
Malaysian
Accounting
Standard Board
(MASB) has
issued Plan
Amendment,
Curtailment or
Settlement under
MFRS 119. It
needs to be
mentioned that
International
Accounting
Standard Board
(IASB) is
responsible for
this issue of
MFRS 119
Employee
Benefits plan.
According to this
amendment, a
business entity is
Issue of Annual
Improvements
by MASB:
On 15 January
2018, MASB
issued the
Annual
Improvements in
some of the
major MFRS
standards for the
financial year
cycle from 2015
to 2017. The
major standards
under this
amendment are
MFRS 3
Business
Combination and
MFRS 11 Joint
Arrangements
for the
amendment of
previously held
interest in a joint
operation; MFRS
112 Income
Taxes for the
amendment of
income tax
Issue of
Narrow-Scope
Amendments to
IFRS 9 and IAS
28 by IASB:
In 2017, IASB
issued
amendments
related to IFRS 9
Financial
Instruments and
IAS 28
Investments in
Associates and
Joint Ventures
for the ease in
implementing
these standards.
With the
assistance of the
amendments in
IFRS 9, business
entities will be
able in the
measurement of
particular pre-
payable financial
assets with the
help of negative
compensations at
fair value or at
Amendments to
Private Entity
Definition:
On 31 January
2017, MASB
provided some
major
amendments in
the definition of
private entity.
This amendment
can be found in
section 2 of the
Companies Act
2016. According
to this
amendment, a
private entity is a
private company
that has no
requirement for
the preparation
of any financial
statement under
any law by
Securities
Commission or
Bank Negara
Malaysia. At the
same time, no
other company
Amendment for
Financial
Reporting by
MASB:
According to this
amendment, all
the private
entities of
Malaysia is
required to
comply with the
principles and
standards of
Malaysian
Financial
Reporting
Standards
(MFRS) for the
purpose of their
annual reporting
from the period
beginning on or
after 1 January
2018. This
amendment has
been issued as
per Financial
Reporting Act
1997 (Act 558)
and Regulation 3
of the Financial

2FINANCIAL REPORTING
required to the
updated actuarial
assumptions for
the determination
of current cost of
service and the
amount of new
interest for the
remaining annual
reporting period
after the
amendment of
the plan, any
curtailment and
settlement at the
time of the re-
measurement
benefit liability
(masb.org.my,
2018).
consequences of
payment on
financial
instruments
classified as
equity; and
MFRS 123
Borrowing Costs
for the
amendments of
borrowing costs
eligible for
capitalization. In
this context, it
needs to be
mentioned that
IASB is
responsible for
the issue of these
amendments
(masb.org.my,
2018).
the amortized
costs through the
comprehensive
income in case of
the meeting of
the specified
conditions. Apart
from this, the
amendment in
IAS 28 provides
the clarification
that the
companies are
accountable for
the long-term
interest in the
associates or the
joint ventures in
which there is no
application for
equity method by
using IFRS 9
(masb.org.my,
2018).
can make them
subsidiary
(masb.org.my,
2018).
Reporting
Regulation 1999
(masb.org.my,
2018). It is
required for all
the private
entities of
Malaysia to
comply with this
amendment.

3FINANCIAL REPORTING
References
Amendment to Private Entity Definition. (2018). Masb.org.my. Retrieved 1 April 2018, from
http://www.masb.org.my/pdf.php?pdf=Amendments%20to
%20MPERS.pdf&file_path=pdf_file
NOTICE – AMENDMENT TO THE EFFECTIVE DATE AND APPLICABILITY OF THE
MALAYSIAN FINANCIAL REPORTING STANDARDS. (2018). Masb.org.my. Retrieved
1 April 2018, from http://www.masb.org.my/pdf.php?
pdf=MASB_NoticeofIssuane_28Oct2015.pdf&file_path=pdf
Welcome to MASB. (2018). Masb.org.my. Retrieved 1 April 2018, from
http://www.masb.org.my/press_list.php?id=293
Welcome to MASB. (2018). Masb.org.my. Retrieved 1 April 2018, from
http://www.masb.org.my/press_list.php?id=291
Welcome to MASB. (2018). Masb.org.my. Retrieved 1 April 2018, from
http://www.masb.org.my/event_list.php?id=177