Reference is made hereto the newly implemented Malaysia Private Entity Reporting Standard (“MPERS”) which took effect from 1st January 2016.
The newly implemented standards shall be adopted by all Private Entities in presenting their financial statements for all financial year or period beginning on or after 1st January 2016.
“Private entity” refers to all business entities except the following:-
- a public company (i.e. Berhad) not listed in the Stock Exchange;
- a public listed company; or
- a company using Malaysian Financial Reporting Standards (“MFRS”).
SECTION 11 – BASIC FINANCIAL INSTRUMENTS
An entity shall measure the financial asset or financial liability (i.e. trade receivables, other receivables, trade payables and other payables) owing for more than 1 year by discounted present value method.
SECTION 13 – INVENTORIES
An entity shall measure inventories at the lower of cost and estimated selling less the estimated cost of completion and the estimated costs necessary to make the sale.
Cost should include all costs of purchase (including taxes, transport, and handling and other costs incurred in bringing the inventories to their present location and condition).
An entity shall measure the cost of inventories by using the first-in, first-out (FIFO) or weighted average cost formula.
The last-in, first-out method (LIFO) is not permitted by this Standard
SECTION 16 – INVESTMENT PROPERTY
Investment property is property (land or a building, or part of a building, or both) held by the Company or by the lessee under a finance lease to earn rentals or for capital appreciation or both, instead of use in the production or supply of goods or services or for administrative purposes; or sale in the ordinary course of business.
If property is mixed use shall be separated between investment property and property, plant and equipment.
If the fair value of the investment property component cannot be measured reliably without undue cost or effort, the entire property shall be accounted for as property, plant and equipment in accordance with Section 17.
SECTION 17 – PROPERTY, PLANT & EQUIPMENT
An entity shall recognise the cost of an item of property, plant and equipment as an asset, and only if it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably.
This recognition principle is applied to all property, plant and equipment costs at the time they are incurred. These costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it.
An entity shall measure an item of property, plant and equipment after initial recognition at cost less any accumulated depreciation and any accumulated impairment losses. No revaluation model.
Land and buildings are separable assets, and an entity shall account for them separately, even when they are acquired together.
SECTION 18 – INTANGIBLES ASSETS OTHER THAN GOODWILL
An entity shall charge the aggregate amount of research and development expenditure as an expense. All internally generated intangible assets shall not be capitalised.
Amortisation begins when the intangible asset is available for use, if the entity is unable to estimate useful life, then use 10 years (i.e. cannot more than 10 years).
SECTION 20 – LEASES
Lease can be classified as operating lease or finance lease.
An entity shall use sum-of-digit method for calculation of hire purchase interest.
SECTION 23 – REVENUE
An entity shall disclose in accounting (i.e. Statement of Comprehensive Income) for revenue arising from the following transactions and events:
- Sales of goods
- Rendering of services
- Construction contracts
- Use of an entity’s assets by others (Interest, Royalties, Dividend received & etc)
SECTION 25 – BORROWING COSTS
An entity shall recognise all borrowing costs as an expense in profit or loss in the period in which they are incurred.
An entity shall charge out all borrowing costs that were capitalised in previous years. No capitalised of borrowing costs are allowed under Section 25.
SECTION 30 – FOREIGN CURRENCY TRANSLATION
Each entity shall identify its functional currency. An entity’s functional currency is the currency of the primary economic environment in which the entity operates e.g. a company in Malaysia can use USD, SGD, JPY as its functional currency. However, the financial statements shall be presented in RM as per Companies Act requirement.
At the end of each reporting period, an entity shall:
- translate foreign currency monetary items (eg receivables & loan) using the closing rate;
- translate non-monetary items (eg property, plant & equipment) that are measured in terms of historical cost in a foreign currency using the exchange rate at the date of the transaction; and
- income and expenses for each statement of comprehensive income shall be translated at exchange rates at the date of the transaction.
SECTION 33 – RELATED PARTY DISCLOSURES
An entity is required to include in its financial statements the disclosures necessary to draw attention to the possibility that its financial position and profit or loss have been affected by the existence of related parties and by transactions and outstanding balances with such parties.
For further understanding on MPERS, please visit here.
- 未在证券交易所上市的公众公司 (i.e. Berhad);
- 上市公司; 或
公司应把超过1年的金融工具以折现值法 (Discounted Present Value Method) 计算金融资产或金融负债，例如：
第13条文 – 库存
公司应采用“先入先出”（FIFO）或“加权平均法”（Weighted Average) 计算库存价值。
第16条文 – 投资资产
第17条文 – 固定资产
第18 条文 – 除了商誉以外的无形资产
第20 条文 – 租赁
第23 条文 – 营收
第25条文 – 借款利息及其他相关费用
第30条文 – 外币折算
每个公司应确定其“功能性货币”(functional currency)。此“功能性货币”就是公司主要的经商货币。 例如，马来西亚公司可以使用美元，新币，日元等作为其“功能性货币”。但是，根据公司法令，财务报表必须以马币（RM）为单位。
第33条文 – 关联交易