The Malaysian Financial Reporting Standard (MFRS) requires all public companies to report their financial data in a consistent manner. The new standards require companies to disclose their non-current assets and current liabilities. Non-current assets include land, buildings, equipment, and investment property. Current assets include cash and other current assets.
The new MFRS is issued by the Malaysian Accounting Standards Board and aligns with the International Financial Reporting Standards. It is a comprehensive guide for businesses and individuals who are interested in financial reporting. It is also useful for regulators, practitioners, and academicians. Its goal is to improve the quality of financial reports in Malaysia.
The MFRS framework is consistent with the International Financial Reporting Standards (IFRS). This means that the standards are word-for-word equivalents. For example, MFRS requires that the ultimate parent of a company be based in Malaysia. This requires the ultimate parent to prepare consolidated financial statements.
The MASB has also approved accounting standards for private companies. These standards are called MPERS and will be effective for annual reporting periods beginning after 1 January 2016. The MASB is overseen by the Financial Reporting Foundation. The foundation issued a statement stating their intention to fully align the MASB with the IFRSs by the year 2012.