Malaysia Introduces Exposure Draft on Reduced Disclosure Requirements

The Malaysian Accounting Standards Board has issued an exposure draft on Amendments to Financial Reporting Standards arising from Reduced Disclosure Requirements – MASB ED 74.


The Exposure Draft proposes to introduce a framework known as Financial Reporting Standards – Reduced Disclosure Requirements (FRS-RDR) which would allow entities that meet specified criteria to provide lesser disclosures than those required under the existing FRS framework.


Disclosures under the FRS-RDR are the minimum disclosures required to be included in the financial statements of eligible entities. If an eligible entity in their judgement determines that disclosures in addition to the FRS-RDR are required to meet the objective of financial reporting, the entity should include the additional disclosures using requirements in full FRSs as a guide.


As for the recognition and measurement requirements under the FRS-RDR framework, they would be identical to the FRS framework. The Board does not believe prescribing a different recognition and measurement bases would reduce the cost of financial reporting since FRS 127 Consolidated and Separate Financial Statements requires consolidated financial statements to be prepared using uniform accounting policies.


The Exposure Draft is proposed to be applicable to non-publicly accountable subsidiary, associate and jointly-controlled entity, of a non-private entity.






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