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Issues

28-	Should the financial statements of a financially healthy entity be prepared on a basis other than a going concern basis when management intends to liquidate or to cease trading or has no realistic alternative but to do so? (2008)
27-	FRS 117.14 requires that "an upfront payment made to obtain the right to use the land to be capitalised as a lease payment". Is the gross method of presenting "Partially Paid Prepaid Lease Rentals" acceptable under FRS 117 Leases to record the transaction? (2008)
26-	FRS 127 allows Investment in Subsidiary be stated either at cost or at the carrying revalued amount. How does a company apply FRS 127 retrospectively if it chooses to state its Investment in Subsidiary at cost in a situation where the revaluation reserve has been utilized? (2008)
25-	Should investment tax allowance and reinvestment allowance be recognised as a deferred tax? (2008)
24-	Is FRS 1 applicable in the migration of accounting framework from the Private Entity Reporting Standards (PERS) to the Financial Reporting Standards (FRS)? (2008)
23-	What are the expenses permitted to be written off against the share premium account under Section 60 of the Companies Act, 1965? (2008)
22-	Should FRS 121 be amended to allow an entity to present its financial statements in its functional currency which is a currency other than Ringgit Malaysia? (2008)
21-	FRS 3 requires published quoted price of equity instruments issued to be taken as the fair value of the cost of business combination. How do we deal with the incremental goodwill created when the fair value of business combination (based on published quoted price) exceeds the agreement price on the completion date of the business combination? (2008)
20-	What is the appropriate accounting treatment for forest management unit (FMU)? (2007)
19-	Should trust account maintained by Participating Organisation (‘PO’) as defined by Rule 101.1 of the Rules of Bursa Malaysia Securities Berhad (‘the Rules’) be recognised in the balance sheet? (2007)
18-	Is profit equalisation reserve maintained by Islamic banking institutions a liability? (2007)
17-	Is projected revenue method appropriate to recognise revenue from shipping freight services? (2007)
16-	Is fixed deposit held on lien a cash and cash equivalent? (2007)
15-	Is writing off of goodwill against share premium (without passing through income statement) pursuant to court’s approval in accordance with requirements of FRS 136 Impairment of Assets? (2007)
14-	When a company changes the measurement basis for its assets (from cost to valuation or vice versa) which warrants a prior year adjustment, should the related depreciation charges be adjusted retrospectively based on the revised definition of residual value in accordance with FRS 116 Property, Plant and Equipment or should the effect of the depreciation charges due to the revised definition of residual value be adjusted prospectively? (2007)


	Events
	FRSIC Organised A Talk On Employee Share Options Scheme (Esos) Valuation 16 Apr 2008 On 16 April 2008, the Financial Reporting Standards Implementation Committee (FRSIC) organized a talk on Employee Share Options Scheme...

	FRSIC Meets with Institute of Surveyors, Malaysia (ISM) 10 Apr 2008 FRSIC had initiated a dialogue with representatives from the Institute of Surveyors Malaysia (ISM) on 10 April 2008; which...


	Form
	Download Submission of Issues Form in Word Document

About Us

The FRS promotes very high levels of disclosure and thus resulting in high levels of transparency in financial reporting. Investors who understand such corporate reporting will be able to appreciate the financial position of their investment companies.

Proper financial reporting is an important pillar in the domain of corporate regulatory framework. This will enhance investor’s confidence and ensure efficient distribution of investment capital which will bring about long term economic growth.

In a liberalised financial and operational environment, investors’ and public’s confidence in the accounting profession is paramount to the development of the capital market, for any loss of confidence in the accounting profession will create an unacceptable market risk for Malaysia.

The investor needs reliable information to enable them to know the fair value of their investment. Auditors, being the gatekeeper play an important governance and responsible role to enhance Malaysia’s capital market’s transparency.

Thus, the direct target audience for the FRSIC would be preparers of financial statements – accountants and auditors who are members of MIA and the indirect target audience are the investors and general public. Therefore having proper financial reporting will be beneficial to the capital market and the business community as a whole.

FRSIC Members and Observers / Governance Structure of FRSIC

Financial Reporting Standards Implementation Committee (FRSIC) Members and Observers as of 02 April , 2008.

Chairman
En. Nik Mohd Hasyudeen Yusoff - President MIA

Members
En. Mohammad Faiz Azmi - MIA Council Member
Y Bhg Dato' Nordin Baharuddin - MIA Council Member
Ms Jennifer Lopez - ACCA
Mr Alex Ooi - CPA Australia
Mr Ng Kim Tuck - MICPA

Observers
En. Abdul Rasheed Abdul Ghafur - Bank Negara Malaysia
Mr. Wong Kay Yong - Bursa Malaysia Berhad
Dr Nordin Mohd Zain - Malaysian Accounting Standards Board
Mr Liew Kim Yuen - Securities Commission
Puan Saidatul Ishan Bt Abdul Rahman - Suruhanjaya Syarikat Malaysia

IMPACT OF FRSIC ON THE CAPITAL MARKET

Complete, reliable and timely information is vital for the efficient functioning of markets and to foster investor confidence. This is especially so in today’s business environment where the effects of intense competition and globalisation have removed financial and operational barriers, making the world borderless and interdependent.

It is therefore essential that financial statements comply with the highest standards of accounting to inculcate confidence among the investing community both local and global. The ramifications of failure in financial reporting can be extensive and at times fatal as evidenced by the spectacular corporate collapses early in the millennium.

A sound financial reporting system is the cornerstone of good corporate governance, for it will instil investor confidence, contribute to capital formation and ensure efficient allocation of capital in securing long-term economic growth. It is important for investors to know that a set of financial statements produced by a Malaysian company is of a quality and level of reliability that is essentially no different than those available in a developed market jurisdiction.

Compliance with the highest standards of accountancy is imperative. Information derived from the utilization of high quality accounting standards will instil confidence among the investing public. This contributes to capital formation and helps ensure that capital is allocated efficiently in securing long-term economic growth. For economies to thrive, their markets must be able to deliver quality investible products and services.

THE MECHANISM OF FRSIC

-	Members and the public can submit issues to FRSIC by filling up a form and returning it to FRSIC Secretariat at MIA
-	Issues submitted should be on points of principle and not solely relevant to a specific company
-	The issues will be tabled to FRSIC for the members to decide whether it is within the scope of FRSIC
-	If accepted, FRSIC will assign a person/working group to research further into the matter and draft the consensus
-	FRSIC will then deliberate on the consensus
-	FRS Implementation Guidance will be published and become effective after a grace period to be determined