MFRS 9 and MFRS 7 Amendments: When Is a Payment Actually Settled?
The amendments issued by the Malaysian Accounting Standards Board (MASB) to MFRS 9 Financial Instruments and MFRS 7 Financial Instruments: Disclosures clarify how companies should account for payments and receipts that are still in transit. The amendments are particularly relevant to companies that use: The central question is: When should a company record that cash […]
IFRS 18 and MFRS 18: Key Changes to Financial Statement Presentation and Disclosure
What Is IFRS 18? IFRS 18 Presentation and Disclosure in Financial Statements is a new accounting standard issued by the International Accounting Standards Board (IASB) in April 2024. It replaces IAS 1 Presentation of Financial Statements. The main purpose of IFRS 18 is to improve how companies present and explain their financial performance, particularly in […]
IFRS 18 and MFRS 18: Key Changes to Financial Statement Presentation and Disclosure
What Is IFRS 18? IFRS 18 Presentation and Disclosure in Financial Statements is a new accounting standard issued by the International Accounting Standards Board (IASB) in April 2024. It replaces IAS 1 Presentation of Financial Statements. The main purpose of IFRS 18 is to improve how companies present and explain financial performance, particularly in the […]
IFRS 18: Subtotals Must Be Meaningful, Not Arbitrary
Can companies create subtotals whenever they wish? Not under IFRS 18. IFRS 18 introduces stricter requirements for subtotals presented in the statement of profit or loss. A subtotal should have a clear purpose and provide useful information to users of the financial statements. Where a subtotal is presented, the company should explain: A company should […]
IFRS 18: Why Clearer Profit Measures Matter
Profit measures need to be clear because they help users understand where a company’s results come from and make more meaningful comparisons between companies. IFRS 18 introduces a more structured presentation of financial performance, with clearer distinctions between: In the past, companies often presented profit or loss using different structures. As a result, investors could […]
IFRS 18: Making Company Comparisons Easier
In the past, companies often presented their statements of profit or loss using different structures. Important items could be grouped or presented differently, making it difficult for investors to assess which company was performing better. IFRS 18 introduces a more structured approach to the presentation of financial performance. It requires clearer profit subtotals and greater […]
Preparing for IFRS 18: Where Should Companies Start?
IFRS 18 is not merely a change to the format of financial statements. It may also affect a company’s financial systems, data processes, key performance indicators (KPIs), internal policies and external communications. Companies should begin preparing early by: Companies should also establish a clear implementation timeline, including key actions, responsibilities and target dates. Early communication […]
IFRS 18: Turning Financial Reporting Changes into Opportunities
IFRS 18 is not merely a new set of requirements. It is an opportunity for companies to make financial reporting clearer, more structured and more useful. To prepare effectively, companies should focus on eight key areas: The earlier a company begins preparing, the smoother the transition is likely to be. Turn complexity into clarity, and […]
Financial Statements: For the Owner or the Business?
Many business owners assume that financial statements are prepared mainly for the boss or management. In reality, MPERS 2025 emphasises that financial statements are prepared for users who rely on financial information to make economic decisions. What Is a Reporting Entity? A reporting entity is the business or organisation that prepares general purpose financial statements. […]
Understanding Assets, Liabilities, Income and Expenses under MPERS 2025 Section 2
Is an asset simply something the company owns, and is a liability simply money the company owes? Not necessarily. MPERS 2025 Section 2 takes a deeper approach by focusing on economic resources, rights and obligations rather than only physical items or cash movements. What Is an Asset? An asset is a present economic resource controlled […]