Accounting Standards for Malaysian SMEs to include latest improvements (28 October 2015)
The Malaysian Accounting Standards Board (MASB) today issued limited amendments to the Malaysian Private Entities Reporting Standard (MPERS). These amendments shall be effective for annual periods beginning on or after 1 January 2017, but early application is permitted.
The most significant change is that private entities are allowed the option of revaluing property, plant and equipment. Private entities that are applying the revaluation model under the existing Private Entities Reporting Standards will certainly welcome this amendment because they can continue applying the revaluation policy when they adopt the MPERS.
The other amendments mainly clarify existing requirements or add supporting guidance, rather than change the underlying requirements in the MPERS.
Private entities that wish to apply the amendments early, instead of for annual periods beginning on or after 1 January 2017, must apply the amendments in their entirety.
The MPERS defines a private entity as a private company incorporated under the Companies Act 1965 that is not a company required by the Securities Commission or Bank Negara to prepare or lodge any financial statements. In addition, a private entity is not a subsidiary or associate of, or jointly controlled by, an entity that is required by the Securities Commission or Bank Negara to prepare or lodge any financial statements.