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Accounting Standard

Introduction

Accounting standards are authoritative standards for financial reporting and are the primary source of generally accepted accounting principles (GAAP). Accounting standards specify how transactions and other events are to be recognized, measured, presented and disclosed in financial statements. The objective of such standards is to provide financial information to investors, lenders, creditors, contributors and others that is useful in making decisions about providing resources to the entity.
In Malaysia, the accounting standards are issued by Malaysian Accounting Standards Board (MASB). It is established under Financial Reporting Act 1997 as an independent authority to develop and issue accounting and financial reporting standards in Malaysia.
There are two standards that you can apply in Malaysia:
MASB Approved Accounting Standards for Entities Other than Private Entities
MASB Approved Accounting Standards for Private Entities
 

Which Accounting Standard I Shall Use?

The decision tree below helps an entity to decide which accounting framework should be used for its preparation of financial statements.
* Private entities that have applied FRSs shall apply either MFRS or the MPERS for annual periods beginning on or after 1 January 2018.
 

Definition of a Private Entity

The decision tree below helps an entity to decide which accounting framework should be used for its preparation of financial statements.
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 Bank Negara Malaysia; 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 Bank Negara Malaysia.
On 28 February 2017, the MASB had revised the Private Entity definition with the coming into operation of the Companies Act 2016 and Interest Schemes Act 2016, both on 31 January 2017. The revised definition is as follows and shall be applied for financial statements with annual periods ending on or after 31 January 2017:
A private entity is a private company as defined in section 2 of the Companies Act 2016 that –
is not itself required to prepare or lodge any financial statements under any law administered by the Securities Commission or Bank Negara Malaysia; 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 Bank Negara Malaysia.
Notwithstanding the above, a private company that is itself, or is a subsidiary or associate of, or jointly controlled by, an entity that is a management company as defined in section 2 of the Interest Schemes Act 2016 is not a private entity.
An entity may only be treated as a private entity in relation to such annual periods or annual periods throughout which it is a private entity.
 

What We Can Help You?

We are one of the recognized accounting firm located at Johor Bahru (Johor) and Penang Island (Penang), Malaysia that provide one-stop financial report compliance services, which includes bookkeeping, accounting, company secretarial services, tax preparation services, business consultancy and etc.
Our group of companies include licensed Secretarial Firm that registered with Chartered Secretaries Malaysia (MAICSA) in Johor Bahru and Penang. This allow company (e.g. Sdn. Bhd.) registered in Malaysia engage us as their company secretary to assist them in compliance with Malaysia statutory requirements.
Our experienced staff will assist client with:
  • Act as named company secretary for your company to communicate, prepare, submit of statutory returns with the Companies Commission of Malaysia (SSM) in compliance with statutory requirements under Companies Act 2016.
  • Prepare resolutions required by company board of directors and attend your board meeting if required.
  • Prepare your company financial report compliance with Malaysia rules and regulation, include GST, MPERS, MFRS and etc.
  • Provide professional advice related to your business set up, operation and Malaysia rules compliance, include company incorporation, accounting, payroll and etc.
Talk to Us Now
 
 

L & Co Plt.

Johor
18A & 20, Jalan Sasa 2, Taman Gaya, 81800 Ulu Tiram, Johor, Malaysia.
Tel +607-859 0410
Fax +607-863 1003
Penang
S1-3, 1-21-01, Suntech @ Penang Cybercity (1575), Lintang Mayang Pasir 3, 11950 Bayan Baru, Penang, Malaysia
Tel +604-377 7075
Fax +604-619 2699
 
     

What Our Client Say

     
L & Co always carry their services in professional way – well planning, in time, precise, friendly and professional. While we are stuck with problems, they can always advice us with industrial best practices and their views.
 
YM Tan
ICT Automation (M) Sdn Bhd
www.ict.com.my
 
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