Malaysia

Extent of IFRS application | Status | Additional Information |
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IFRS Standards are required for domestic public companies |
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Public companies are required to use the MFRS Framework, which is substantively equivalent to IFRS Standards. |
IFRS Standards are permitted but not required for domestic public companies | ||
IFRS Standards are required or permitted for listings by foreign companies |
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Permitted. |
The IFRS for SMEs Standard is required or permitted |
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SMEs are permitted to use the Malaysian Private Entities Reporting Standard (MPERS), which is substantively equivalent to the IFRS for SMEs Standard except for the requirements for property development activities plus some terminology changes. |
The IFRS for SMEs Standard is under consideration |
Organisation
Role of the organisation
Website
Email contact
Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards?
Has the jurisdiction made a public commitment towards IFRS Standards as that single set of high quality global accounting standards?
What is the jurisdiction's status of adoption?
Additional comments provided on the adoption status?
In August 2008, the MASB announced its plan to converge Malaysian Financial Reporting Standards (MFRS) with IFRS Standards in 2012. See this press release.
In November 2011, the MASB issued the MFRS Framework which is Malaysian Financial Reporting Standards (MFRS) that are, in substance, word-for-word in agreement with all IFRS Standards in effect as of 1 January 2012. Moreover, MASB’s plan is to maintain the identity of MFRS and IFRS Standards going forward by adopting all new or amended IFRS Standards.On 2 September 2014 the MASB announced that the mandatory effective date for Transitioning Entities to migrate to the MFRS Framework is 1 January 2017. The MASB also announced the adoption of two recent IFRS Standards as part of the MFRS Framework as follows:
- MFRS 15 Revenue from Contracts with Customers, effective for annual periods beginning on or after 1 January 2017.
- Agriculture: Bearer Plants (Amendments to MFRS 116 and MFRS 141) effective for annual periods beginning on or after 1 January 2016.
The announcement (MASB Notice 2014-09-02) is here.
On 8 September 2015, the MASB announced that in the light of the IASB Board’s deferral of IFRS 15 Revenue from Contracts with Customers, the mandatory effective date for Transitioning Entities to migrate to the MFRS Framework will also be deferred to 1 January 2018. The MASB has consistently used the effective date of MFRS 15 (which is, in substance, word-for-word IFRS 15) as the basis for setting the effective date for the Transitioning Entities to apply the MFRS Framework. See this press rel="noopener noreferrer" release and announcement (MASB Notice 2015-10-28).
Financial statements that have been prepared in accordance with the MFRS are required to include an explicit and unreserved statement of compliance with IFRS Standards.
If the jurisdiction has NOT made a public statement supporting the move towards a single set of accounting standards and/or towards IFRS Standards as that set of standards, explain the jurisdiction's general position towards the adoption of IFRS Standards in the jurisdiction.
For DOMESTIC companies whose debt or equity securities trade in a public market in the jurisdiction:
Are all or some domestic companies whose securities trade in a public market either required or permitted to use IFRS Standards in their consolidated financial statements?
If YES, are IFRS Standards REQUIRED or PERMITTED?
Does that apply to ALL domestic companies whose securities trade in a public market, or only SOME? If some, which ones?
Non-private entities were mandated by law to apply the MFRS Framework (ie IFRS Standards) for annual periods beginning on or after 1 January 2012, with the exception of Transitioning Entities (TEs).
TEs are mandated by law to apply the MFRS Framework for annual periods beginning on or after 1 January 2018, with early application permitted. In the meantime, TEs that have not chosen to apply the MFRS Framework will continue using the existing Malaysian national GAAP (known as the FRS Framework) in its entirety.
TEs are entities that are subject to the application of MFRS 141 Agriculture (identical to IAS 41 Agriculture) and/or Malaysian Interpretation 15 Agreements for Construction of Real Estate (identical to IFRIC 15 Agreements for the Construction of Real Estate). An entity that consolidates or equity accounts another TE that has chosen to apply FRS (rather than MFRS) may itself choose to apply the FRS Framework. The MASB had permitted TEs to continue to use FRS until the IASB Board completed its projects on revenue recognition and bearer biological assets. Those projects are now completed, and MASB has adopted IFRS 15 and the bearer plant revisions to IAS 41 as part of the MFRS Framework.
Are IFRS Standards also required or permitted for more than the consolidated financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted in separate company financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted for companies whose securities do not trade in a public market?
Through 31 December 2015, private entities were permitted to use the MFRS Framework (identical to IFRS Standards) or they were permitted to use the Private Entity Reporting Standard (PERS) issued by the MASB. However, with effect from 1 January 2016, PERS is withdrawn and be replaced by the Malaysian Private Entities Reporting Standard, MPERS. MPERS is word-for-word the IFRS for SMEs Standard (including the Amendments to the IFRS for SMEs Standard issued in May 2015) except for the requirements for property development activities, plus some terminology changes (details are in the section below on Application of the IFRS for SMEs)
Under MASB guidelines, an entity that is a subsidiary, an associate, a joint operation, or a joint venture whose parent/investor is required by the Malaysian securities or banking regulator to prepare full MFRS financial statements must itself prepare full MFRS financial statements. That is, it does not meet the definition of a private entity under MASB guidelines and cannot use the PERS.
If the jurisdiction currently does NOT require or permit the use of IFRS Standards for domestic companies whose securities trade in a public market, are there any plans to permit or require IFRS Standards for such companies in the future?
For FOREIGN companies whose debt or equity securities trade in a public market in the jurisdiction:
Are all or some foreign companies whose securities trade in a public market either REQUIRED or PERMITTED to use IFRS Standards in their consolidated financial statements?
If YES, are IFRS Standards REQUIRED or PERMITTED in such cases?
Does that apply to ALL foreign companies whose securities trade in a public market, or only SOME? If some, which ones?
Which IFRS Standards are required or permitted for domestic companies?
The auditor's report and/or the basis of presentation footnotes states that financial statements have been prepared in conformity with:
Does the auditor's report and/or the basis of preparation footnote allow for ‘dual reporting’ (conformity with both IFRS Standards and the jurisdiction’s GAAP)?
Are IFRS Standards incorporated into law or regulations?
If yes, how does that process work?
Section 7 of the Financial Reporting Act 1997 (FRA) empowers the Malaysian Accounting Standards Board to issue approved accounting standards for application in Malaysia. Under section 26D of the FRA, financial statements that are prepared or lodged with the Central Bank, Securities Commission, or Registrar of Companies are required to comply with the standards issued by MASB. Consequently, the accounting standards issued by MASB are given the force of law.
If no, how do IFRS Standards become a requirement in the jurisdiction?
Does the jurisdiction have a formal process for the 'endorsement' or 'adoption' of new or amended IFRS Standards (including Interpretations) in place?
If yes, what is the process?
The MASB must make a public announcement of the issuance of a new or amended MFRS that is equivalent to a new or amended IFRS so as to give the standard the legal status of MASB Approved Accounting Standards under the Financial Reporting Act 1997. Please see this link for the announcement of issuance of the MFRS Framework and FRS Framework.
If no, how do new or amended IFRS Standards become a requirement in the jurisdiction?
Has the jurisdiction eliminated any accounting policy options permitted by IFRS Standards and/or made any modifications to any IFRS Standards?
If yes, what are the changes?
Other comments regarding the use of IFRS Standards in the jurisdiction?
Are IFRS Standards translated into the local language?
If they are translated, what is the translation process? In particular, does this process ensure an ongoing translation of the latest updates to IFRS Standards?
Has the jurisdiction adopted the IFRS for SMEs Standard for at least some SMEs?
Yes.
On 14 February 2014, the MASB issued a new set of framework for its private entities, MPERS (Malaysian Private Entities Reporting Standard). MPERS takes effect for financial statements with annual periods beginning on or after 1 January 2016, with early application permitted. The MPERS is, in substance, word-for-word the IFRS for SMEs Standard issued by International Accounting Standards Board in July 2009 except for the requirements on income tax and property development activities, plus some terminology changes (details below).
On 28 October 2015, the MASB issued Amendments to MPERS, word-for-word the 2015 Amendments to IFRS for SMEs Standard. With those amendments, section 29 on income taxes has been made, in substance, word-for-word the requirements on income taxes prescribed in the Amendments to IFRS for SMEs Standard issued in May 2015. Consequently, the MPERS (including the Amendments to MPERS) is, in substance, word-for-word the IFRS for SMEs Standard (including the Amendments to IFRS for SMEs Standard) except for the requirements for property development activities plus some terminology changes.
If no, is the adoption of the IFRS for SMEs Standard under consideration?
Did the jurisdiction make any modifications to the IFRS for SMEs Standard?
If the jurisdiction has made any modifications, what are those modifications?
Section 1 Small and Medium-sized Entities has been modified to prescribe the applicability of the MPERS in the Malaysian context. In this regard, all references to ‘SMEs’ and ‘public accountability’ in Sections 1-35 have been replaced by the term ‘private entities’.
Section 9 Consolidated and Separate Financial Statements requires the ultimate Malaysian parent to prepare consolidated financial statements regardless of whether its ultimate parent that is not incorporated in Malaysia prepared consolidated financial statements.
Section 34 Specialised Activities has been amended to provide guidance on the accounting for property development activities in Malaysia. Consequently, Example 12 on Agreements for the Construction of Real Estate contained in the Appendix to Section 23 Revenue has been removed.
Which SMEs use the IFRS for SMEs Standard in the jurisdiction, and are they required or permitted to do so?
Entities that meet the definition of a private entity are permitted to use MPERS. A private entity is a private company, incorporated under the Companies Act 1965, that –
- is not itself required to prepare or lodge any financial statements under any law administered by the Securities Commission or the Central Bank; and
- is not a subsidiary or associate of, or jointly controlled by, an entity which is required to prepare or lodge any financial statements under any law administered by the Securities Commission or the Central Bank.
For those SMEs that are not required to use the IFRS for SMEs Standard, what other accounting framework do they use?
Private entities must choose their accounting framework as follows:
- Private Entity Reporting Standards (PERS) in their entirety for financial statements with annual periods beginning before 1 January 2016; or
- Malaysian Private Entities Reporting Standard (MPERS) in its entirety for financial statements with annual periods beginning on or after 1 January 2016; or
- Malaysian Financial Reporting Standards (MFRS) in their entirety.
Other comments regarding use of the IFRS for SMEs Standard?
General requirements for companies for-profit entities
Entities incorporated under the Companies Act 1965:
The Companies Commission of Malaysia (SSM) requires the above entities to physically file its financial statements within one month (or two months if the branch register is maintained outside Malaysia) after its annual general meeting (AGM). The AGM has to be held within six months from the entity’s year end.
Entities under the purview of the Central Bank of Malaysia (BNM):
Banking institutions and development financial institutions submit the interim report and audited annual report to the BNM within four weeks after the end of each quarter and 90 days after end of the financial year respectively. Annual reports are to be published on websites and newspapers within 14 days after the AGM. Interim reports are to be published on the website within eight weeks after the end of the interim period Insurance companies have to publish the interim report (prepared on a half-yearly basis) within eight weeks after the end of the interim period on their websites and submit audited annual reports to the BNM within 90 days after the end of the financial year.
Money brokers and intermediates are required to submit annual reports within 90 days after the end of the financial year.
Listed companies
Listed companies shall submit to the Securities Commission in hard copies:
- a copy of its audited annual accounts within two weeks from the date of its AGM; and
- its interim and periodic financial reports immediately after figures are available.
Listed companies shall also electronically:
- announce interim reports to the Stock Exchange (Bursa Malaysia) within two months after the end of each quarter; and
- announce annual reports to the Stock Exchange (Bursa Malaysia) within four months and issue the annual report to the Stock Exchange and shareholders within six months.
In relation to the filing reporting requirements, according to Bursa media release dated 27/12/2013, Bursa Malaysia will be shortening the timeframe for issuance of annual reports under the Listing Requirements. The changes would be introduced in phases to provide public listed companies with time to prepare for and meet the new requirements.
The timeframe for issuance of the annual reports is phased out in the following manner:
- issuance of the annual reports within five months from the close of the financial year—this is applicable for annual reports issued for financial years ending on or after 31 December 2014 (‘Phase 1 Amendments’) [paragraph/ Rule 9.23 of the Listing Requirements]; and
- issuance of the annual reports within four months from the close of the financial year and dispensation with the separate requirement for the announcement of annual audited financial statements within four months from the close of the financial year (because the annual reports issued within four months would already include the annual audited financial statements, directors’ and auditors’ report)—this is applicable for annual reports issued for financial years ending on or after 31 December 2015 (‘Phase 2 Amendments’) [paragraph/ Rule 9.23 of the Listing Requirements].
General requirement for companies
The SSM has issued the SSMT Taxonomy and the operationalisation of the XBRL financial reporting format in SSM is expected to be implemented on a voluntary basis in 2016. It is to be made mandatory once a date has been determined by the Registrar. Currently, PDF is an accepted format of filing.
The scope or types of companies or industries included in the Phase 1 Amendments of the SSM’s XBRL submission are:
- the return of solvent Exempt Private Company;
- public companies—whether listed and non-listed in Bursa Malaysia; and
- private companies.
Those excluded are:
- sinance and insurance industry (Bank Negara Taxonomy);
- companies that are limited by guarantee; and
- foreign companies.
With effect from 2012, the BNM has implemented an online reporting system leveraging on XBRL. Currently, this system is being used to collect data from banking and development financial institutions, and will be further extended to include insurance companies in the near future. XBRL filing is issued at the same time as the printed version.
Listed companies
Organisation
What type or format of structured electronic filing is required or permitted?
What is the purpose of the electronic filing?
- disclosure for investors and credit analysts in capital markets;
- taxation; and
- business registry and reviewing filings.
What documents are required to be filed to the electronic filing system
Is the financial data provided in XBRL format publicly available?
Is the XBRL reporting system based on the IFRS Taxonomy issued by the IASB?
If no, what are the reasons for not using the IFRS Taxonomy?
Is the IFRS for SMEs filing adopted in the XBRL reporting system?
If no, are there any plans to implement the IFRS for SMEs filing in the future?
Yes, plans are under way.
On 14 February 2014, the Malaysian Accounting Standards Board (MASB) issued the Malaysian Private Entities Reporting Standard (MPERS). MPERS takes effect for financial statements with annual periods beginning on or after 1 January 2016, with early application permitted. The MPERS is word-for-word the IFRS for SMEs that was issued by the IASB in July 2009 except for the requirements on income tax and property development activities, plus some terminology changes. For more information on MPERS, please visit the MASB website at www.masb.org.my.
Entities that meet the definition of a private entity are permitted to use MPERS. A private entity is a private company, incorporated under the Companies Act 1965, that
- is not itself required to prepare or lodge any financial statements under any law administered by the Securities Commission or the Central Bank; and
- is not a subsidiary or associate of, or jointly controlled by, an entity that is required to prepare or lodge any financial statements under any law administered by the Securities Commission or the Central Bank.
How is the XBRL financial statement reporting system set up?
What is (are) the intended purpose(s) of the local base taxonomy?




Which IFRS Taxonomy files are used?






Which part(s) of the IFRS (local) Taxonomy do filer's submissions import/refer to?

Are filers permitted to replace or override any aspects or specified features of the IFRS (local) Taxonomy?
If yes, which aspects and how does this work?

What is the scope or coverage of XBRL filing/tagging?
(a) financial statements:
- face statements/primary financial statements; and
- notes/footnotes.
(b) tagging coverage
- ‘detailed’ tagging—all numeric facts (substantial items);
- block tagging; and
- other partial tagging (please give further details below).
Need to create enumerations to restrict the set of values as answers.
(c) form-based filing (inclusive PDF of the auditor’s report to members).
Are there any plans to extend the coverage of the XBRL filing/tagging in the future?
Which version of the IFRS Taxonomy is being used
If the taxonomy is to be updated to the 2014/2015 version, which of the following module(s) is (are) to be used?


Any guidelines or submission rules for filers?
Do bodies in this jurisdiction use XBRL for purposes other than general purpose financial reports? (For example, taxation authorities, statistical purposes etc.)
Organisation
Project description
Both hard copies and electronic filings are required by the BNM. While the printed version of audited financial statements contains qualitative information, the electronic version has no qualitative information but instead has more granular information. Information (both audited and unaudited) on the financial statements are prepared in accordance with the MFRS while other information required for statistical/regulatory reporting requirements are reported as per requirements specified by the BNM. The purposes of collecting information include:
- supervision and surveillance of financial institutions;
- statistical/regulatory reporting requirements; and
- publication.
Current taxonomies were developed based on the IFRS Taxonomy 2010 with a large degree of customisation and extensions to meet the BNM’s additional or specific statistical/regulatory reporting requirements.
Currently, only banks and development financial institutions are required to file through the XBRL system, but there is a future plan to also cover insurance companies.
Filers are required to key-in the web form or upload data (via a pre-formatted MS Excel® form) via the submission system, which will convert the submission into an XBRL instance document and submit it to the BNM for processing.
Organisation
Role of the organisation
Website
Email contact
Organisation
Role of the organisation
The Companies Commission of Malaysia (SSM) is a statutory body that regulates companies, businesses and limited liability partnerships (LLPs).
The main activity of the SSM is to serve as an agency to incorporate companies and LLPs and register businesses as well as to provide company and business information to the public. As the leading authority for the improvement of corporate governance, the SSM fulfills its function to ensure compliance with business registration and corporate legislation through comprehensive enforcement and monitoring activities so as to sustain positive developments in the corporate and business sectors of the Nation.
Website
Email contact
Organisation
Role of the organisation
The BNM is a central bank of Malaysia, mandated to promote monetary stability and financial stability conducive to the sustainable growth of the Malaysian economy.
Division 3 of the Financial Services Act and Islamic Financial Services Act issued by the BNM require licensed financial institutions to maintain accounting records; comply with approved accounting Standards; prepare their financial statements in accordance with the approved accounting Standards and/or in the absence of any approved accounting Standards, any Standards as may be specified by the BNM on prudential matters; and publish their financial statements. The BNM may require that the financial statements shall be audited before any publication.