ROADSHOWROADSHOWROADSHOWROADSHOWImplementation Guidance on FRSImplementation Guidance on FRSImplementation Guidance on FRSImplementation Guidance on FRS

Module 1Module 1

CompleteComplete

ReliablReliablee

TimelyTimely

Efficient marketEfficient market

Proper financial reportingProper financial reporting

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Foster Foster investors’ investors’ confidenceconfidence

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MIA with support from the MIA with support from the Capital Market Capital Market Development Fund (CMDF)Development Fund (CMDF)formed FRSIC in January 2007formed FRSIC in January 2007

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FRSIC provides professional counsel on FRSIC provides professional counsel on matters concerning Financial Reporting matters concerning Financial Reporting Standards by way of issuing Standards by way of issuing

implementation guidanceimplementation guidance

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30 issues since 30 issues since 2007 . . .2007 . . .

11 consensus reached11 consensus reached

4 discontinued4 discontinued

7 rejected7 rejected

8 on-going projects8 on-going projects

8 consensus will be 8 consensus will be discussed todaydiscussed today

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Today’s consensusToday’s consensus Determination of substantively enacted tax rate Determination of substantively enacted tax rate

for year of assessment 2008 and thereafter.for year of assessment 2008 and thereafter.

Applicable accounting standards for MSC Status Applicable accounting standards for MSC Status Company.Company.

Is fixed deposit held on lien for bank guarantee Is fixed deposit held on lien for bank guarantee facilities a cash and cash equivalent?facilities a cash and cash equivalent?

Accounting treatment for impairment of goodwill in Accounting treatment for impairment of goodwill in situation where court approval has been obtained to situation where court approval has been obtained to write it off against reserve.write it off against reserve.

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Today’s consensusToday’s consensus Split of the minimum lease payments between Split of the minimum lease payments between

the land and the building elements.the land and the building elements.

Accounting for premium paid for transfer of listing Accounting for premium paid for transfer of listing status in a reverse takeover scenario.status in a reverse takeover scenario.

Accounting treatment for granting of ESOS by Accounting treatment for granting of ESOS by parent company to subsidiary’s employees and parent company to subsidiary’s employees and subsequent recharge by the parent.subsequent recharge by the parent.

Revenue recognition for shipping freight services Revenue recognition for shipping freight services companies.companies.

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Convergence with Convergence with IFRS : MalaysiaIFRS : Malaysia

Full compliance with IFRS by Full compliance with IFRS by 1 January 2012.1 January 2012.

Enhance comparabilityEnhance comparability of financial of financial statements between Malaysian companies and statements between Malaysian companies and companies worldwide.companies worldwide.

Globalisation wave - more than 100 countries are Globalisation wave - more than 100 countries are converging or have converged to IFRS.converging or have converged to IFRS.

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Committee MembersCommittee MembersChairmaChairmann En. Nik Mohd Hasyudeen YusoffEn. Nik Mohd Hasyudeen Yusoff

MembersMembersDato’ Nordin BaharuddinDato’ Nordin Baharuddin

En. Mohammad Faiz AzmiEn. Mohammad Faiz Azmi

Mr. Stephen OongMr. Stephen Oong

Ms. Jennifer Lopez Ms. Jennifer Lopez (ACCA)(ACCA)

Mr. Alex Ooi Mr. Alex Ooi (CPA Australia)(CPA Australia)

Mr. Ng Kim Tuck Mr. Ng Kim Tuck (MICPA)(MICPA)

MIA Council MIA Council MembersMembers

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ObserversObserversBank Negara MalaysiaBank Negara Malaysia

Bursa Malaysia BerhadBursa Malaysia Berhad

Malaysian Accounting Standards BoardMalaysian Accounting Standards Board

Securities CommissionSecurities Commission

Suruhanjaya Syarikat Suruhanjaya Syarikat

MalaysiaMalaysia

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FRSIC ProcessFRSIC Process

Submit Submit issueissue

FRSIC FRSIC acceptanceacceptance

ResearchResearch

Working Working Group Group

discussiondiscussion

Issue Issue draft draft

consensusconsensus

FRSIC FRSIC deliberation & deliberation &

recommendatiorecommendationn

MIA MIA Council Council

approvalapproval

(Practitioners, (Practitioners, regulators & regulators & industry players)industry players)

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frsic.mia.org.mfrsic.mia.org.myy

frsic@mia.org.myfrsic@mia.org.my