Development of Financial Reporting in Malaysia

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Questions and Answers

Which company ordinance took place in the 1960s in Malaysia?

Company Ordinance 1984

Company Ordinance 1970

Company Ordinance 1965 (correct)

Company Ordinance 1940

What reporting framework was adopted in Malaysia in 2006?

International Financial Reporting Standards (IFRS) (correct)

Bank Negara Malaysia Guidelines (BNM GPs)

Malaysian Accounting Standards (MAS)

Financial Reporting Standards (FRS)

What was the main focus of the changes made in 2005 regarding IFRS?

Elimination of all previous accounting standards

Introduction of a new framework for financial reporting

Transition to International Financial Reporting Standards (correct)

Creation of a dual financial reporting structure

What does CA 2016 refer to in the context of Malaysian financial reporting?

Company Act 2016 Signup and view all the answers

Which body is primarily associated with the adoption of IFRS in 2006?

IASB Signup and view all the answers

Which standard is associated with the financial reporting developments in Malaysia during the 1980s?

Malaysian Accounting Standards (MAS) Signup and view all the answers

What occurred in 2012 concerning IFRS adoption?

Full implementation of IFRS Signup and view all the answers

Before 1997, which accounting standards were predominantly in use?

National standards Signup and view all the answers

Which entity was established in 1997 to oversee the development of financial reporting standards in Malaysia?

Malaysian Accounting Standards Board (MASB) Signup and view all the answers

What was a key regulatory development for financial reporting in Malaysia during the 1970s?

Introduction of IASs in 1978 Signup and view all the answers

Which term refers to the framework adopted for financial reporting in Malaysia?

MFRS Signup and view all the answers

What significant change occurred in the 1990s regarding financial reporting in Malaysia?

Dual financial reporting framework Signup and view all the answers

What was a major change associated with the adoption of FRS in 1997?

Revising nomenclature of accounting standards Signup and view all the answers

Which of the following developments is NOT associated with the current state of financial reporting in Malaysia?

Amendment of Company Ordinance 1965 Signup and view all the answers

Which of the following is NOT a standard associated with IFRS?

FASB Signup and view all the answers

What was the role of MASB in the context of adopting IFRS?

Integrating and localizing IFRS for Malaysia Signup and view all the answers

Study Notes

Development of Financial Reporting in Malaysia

The development of financial reporting in Malaysia can be traced back to the 1940s with the introduction of company ordinances.
Over the years, the country has adopted different standards, from the Companies Act (CA) 1965 and its amendments to the International Accounting Standards (IASs) in the 1970s and the Malaysian Accounting Standards (MASs) in the 1980s.
Key milestones include the formation of the Malaysian Accounting Standards Board (MASB) in 1997, the adoption of International Financial Reporting Standards (IFRSs) in 2006, and the implementation of a dual financial reporting framework in 2016 with the Companies Act 2016.
The current state of the art in financial reporting in Malaysia is a dual framework: reporting under both IFRSs and Malaysian Financial Reporting Standards (MFRSs).

Development of Financial Reporting Standards in Malaysia

The development of financial reporting standards in Malaysia has been evolving and the timeline can be categorized into pre-MASB era, pre-adoption, post-adoption of IFRSs, and current state.
The Malaysian Association of Certified Public Accountants (MACPA/MIA) played a crucial role in standard-setting during the pre-MASB era.
The MASB was established in 1997 with the objective of developing and issuing financial reporting standards to harmonize the Malaysian accounting practices with international standards.
In 2005, the MASB adopted IFRSs and started phasing in their implementation in 2006.
The full implementation of IFRS 139 was completed in 2010.
Currently, the dual financial reporting framework in Malaysia requires entities to report under both IFRSs and MFRSs.

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Description

This quiz explores the evolution of financial reporting standards in Malaysia from the 1940s to the present. It covers key developments such as the introduction of company ordinances, the establishment of the Malaysian Accounting Standards Board, and the adoption of international standards. Test your knowledge on the milestones that have shaped the financial reporting landscape in Malaysia.