Section A: Malaysian Financial Reporting Standards (MFRS) Framework
1.0 Introduction on MFRS Framework When MASB was formed in 1997, it was adopted the 24 existing standards issued by the Malaysian Institute of Accountants (MIA) and the Malaysian Association of Certified Public Accountants it accepted with accounting standards. On 1 January 2005, all MASB will renamed Financial Reporting Standards. In February 2006, the MASB further declared that Financial Reporting Standards were coercively for the all entities expect private entities. A private entity to define as a private company combined under the Companies Act 1965. MASB issued an ED75 IFRS-compliant Financial Reporting Standard in June 2011 and followed by a new MASB accepted …show more content…
According to the provisions of the Act, this two institutions are responsible for setting the accounting standards for Malaysia. The Financial Reporting Act 1997 have this new financial reporting framework, the role of standards formulate is commissioned to a statutory body independent of the accounting profession MASB. Then, FRF is responsible for overseeing the operation and performance of the MASB, also including financial results. Besides, FRF also serves as a detection board for the MASB, so that FRF will be the first to survey MASB’s the technical statement before goes to the public. MASB has been approved and issued accounting standards, formerly known as Malaysian Accounting Standards Board (MASB) be regarded as MAS B. When FRF and MASB together announced plan to change the name of the MASB standard, it has been closer to the world fusion of accounting standards. From January 1, 2005, it changed its name to the existing MASB Standard Financial Reporting Standards “FRS”, in line with similar by other countries in the region to change its standard name. However, MASB also emphasized the financial information was leaked. The Financial Reporting Act 1997 issued by MASB provides the requirement for the leaked of financial information under section 7 (1). MASB also emphasized the preparation of FRS 101 approved financial …show more content…
The compliance with MFRS it is the responsibility of the board of directors to ensure that the financial statements reflect the business conditions and operational performance of the financial institution in the most realistic and equitable manner. Besides, this is in accordance with the trusteeship and statutory obligations of the council as the person to responsible for the management of financial institutions. Therefore, the Committee should be satisfied that a sound financial reporting structure had been established to ensure the integrity and believe of the financial