Financial Reporting: Amendments to Private Entity Definition by MASB

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