Financial accounting & reporting in Malaysia

The new financial reporting regime of Malaysia incidentally coincided with the dawn of the new millennium. The Malaysian Accounting Standards Board (MASB) has, to date, issued 13 MASB Standards and they take effect for financial statements ended 30 June 2000 and onwards. These MASB Standards, apart from prescribing principles on recognition, measurement and disclosures, also change significantly the financial accounting and reporting framework in Malaysia. Under the old reporting regime, accounting practices were based more on stewardship accounting where compliance with the Ninth Schedule of the Companies Act 1965 and accounting standards of the profession was the norm. Under the new financial reporting regime, the shift is towards providing information that is useful to a wide range of users in making economic decisions. Compliance with company laws and approved accounting standards represents minimum requirements. Reporting enterprises must ensure and observe a fair presentation of their financial statements, and if necessary go beyond the minimum requirements to achieve a fair presentation.