MASB issues 4 amendments to FRSs, 1 technical release, 1 statement of principle and withdraws 1 FRS (15 September 2009)

On 15 September 2009, the Malaysian Accounting Standards Board (MASB) announced the issuance of amendments to the following Financial Reporting Standards (FRSs):



• FRS 101 Presentation of Financial Statements
• Amendments to FRS 132 Financial Instruments: Presentation
• Amendments to FRS 139 Financial Instruments: Recognition and Measurement, FRS 7 Financial Instruments: Disclosures and IC Interpretation 9 Reassessment of Embedded Derivatives
• Amendments to FRSs contained in the document entitled “Improvements to FRSs (2009)”


The revised Standard is effective for annual periods beginning on or after 1 January 2010.
MASB also issues 2 technical documents from the Islamic Perspective are:-



• Technical Release : TR i-3 Presentation of Financial Statements of Islamic Financial Institutions
• Statement of Principle : SOP i-1 Financial Reporting from an Islamic Perspective


With the issuance of TR i-3, the MASB gives notice for the withdrawal of FRS i-12004 Presentation of Financial Statements of Islamic Financial Institutions.


Main changes in FRS 101 are:-


1) Some of the titles of the financial statements have been changed. ‘Balance Sheet’ now renamed to as a ‘statement of financial position’, and a ‘cash flow statement’ is renamed to as a ‘statement of cash flows’. Income and expenses to be presented in one statement (a statement of comprehensive income) or in two statements (a separate income statement and a statement of comprehensive income), separately from owner changes in equity.


2) Revised standard required entity to present a statement of financial position as at the beginning of the earliest comparative period in a complete set of financial statements when:-
- the entity applies an accounting policy retrospectively or
- makes a retrospective restatement, as defined in FRS 108 Accounting Policies, Changes in Accounting Estimates and Errors, or
- when the entity reclassifies items in the financial statements.
An entity is required to present, as a minimum 3 columns for statement of financial position (and related notes), i.e. as at:
• the end of the current period;
• the end of the previous period (which is the same as the beginning of the current period);and
• the beginning of the earliest comparative period.


3) Entities will no longer have the option of presenting non-owner movements as separate items in a statement of changes in equity. Such non-owner movements must be presented in a statement of comprehensive income and the total carried to the statement of changes in equity. Also, entities are no longer permitted to present transactions with owners in their capacity as owners in the notes – the statement of changes in equity must be presented as a separate financial statement.

Example of other compressive income are:-
- changes in revaluation surplus (under FRS 116 Property, Plant and Equipment and FRS 138 Intangible Assets);
- actuarial gains and losses on defined benefit plans recognised in accordance with paragraph 93A of FRS 119 Employee Benefits;
- gains and losses arising from translating the financial statements of a foreign operation (under FRS 21 The Effects of Changes in Foreign Exchange Rates);
- gains and losses on remeasuring available-for-sale financial assets (under FRS 139 Financial Instruments: Recognition and Measurement); and
- the effective portion of gains and losses on hedging instruments in a cash flow hedge (under FRS 139).

4) The presentation of dividends recognised as distributions to owners and related amounts per share in the statement of changes in equity or in the notes.

5) The revised Standard requires reclassification adjustments relating to components of other comprehensive income to be disclosed. Entities may choose to present reclassification adjustments in the statement of comprehensive income or in the notes. An entity presenting reclassification adjustments in the notes presents the components of other comprehensive income in the statement of comprehensive income after any related reclassification adjustments.