NEW FRS TO BE LEARN -COMPALSORY

MASB issues three new FRS

KUALA LUMPUR: The Malaysian Accounting Standards Board (MASB) has issued three new financial reporting standards (FRS) and two interpretations relating to financial instruments.

In a statement issued on Monday, MASB said the new FRSs and interpretations are FRS4 Insurance Contracts, FRS 7 Financial Instruments and FRS 8 Operating Segments.

The interpretations are related to the reassessment of embedded derivatives and interim financial reporting and impairment.

These will take effect from Jan 2010 while the FRS 8 will be effective on or before July 1, 2009.

MASB executive director Dr Nordin Mohd Zain said this was the first of the series of standards issued after the announcement of Malaysia’s convergence plan with International Financial Reporting Standards (IFRS) in 2012.

IFRS are standards and interpretations adopted by the International Accounting Standards Board (IASB).

In August this year, the MASB and its trustees, the Financial Reportuing Foundation, announced the plan to have the full convergence with the IFRS by Jan 1, 2012.

“The move will help place Malaysia’s capital market and companies on the same level playing field with the international markets,” it said.