Improvements to the MFRS issued
On January 15, 2018, the Malaysian Accounting Standards Board (MASB) issued the annual improvements to the Malaysian Financial Reporting Standards (MFRS) 2015 – 2017 cycles.
The improvement issued are as follows:
MFRS 3 Business Combinations
Under the amendments made to MFRS 3, it is clarified that whenever an entity gains control of a business that is a joint operation, it immediately remeasures interests which were previously held in that business.
MFRS 11 Joint Arrangements
Under these amendments made to MFRS 11, when an entity obtains joint control of a business that is a joint operation, then there is not need for it to remeasure previously held interests in that business.
MFRS 112 Income Taxes
Under these amendments to MFRS 112, it is clarified that when an entity recognises the income tax consequences in profit or loss because such consequences of dividends are linked more directly to past transactions than to distributions to owners. However, this does not apply if the tax arises from a transaction which is a business combination or that is recognised in other comprehensive income or directly in equity.
MFRS 123 Borrowing Costs
It is clarified under the amendments that when a qualifying asset is ready for its intended use or sale, an entity treats any outstanding borrowing made specifically to obtain that qualifying asset as part of general borrowings.
This Annual Improvements is word-for-word the Annual Improvements to IFRS Standards 2015-2017 Cycle issued by the International Accounting Standards Board (“IASB”). For further information, please refer to MASB’s website.