The Malaysian Accounting Standards Board (MASB) yesterday published "Exposure Draft 71 -- Additional Exemptions for First-time Adopter" that proposes amendments to FRS 1.
ED 71 is word-for-word to that issued by the International Accounting Standards Board (IASB). The amendments are aimed at ensuring that entities applying FRSs will not face undue cost or effort in the transition process for two situations.
The amendments exempt entities using the full cost method from retrospective application of FRSs for oil and gas assets. It also exempts entities with existing leasing contracts from reassessing the classification of those contracts in accordance with [draft] IC Interpretation 4 Determining whether an Arrangement contains a Lease when the application of accounting requirements produced the same result, even if the reassessment based on previous GAAP took place at a date other than that required by [draft] IC Interpretation 4.
Interested parties, including the business communities, are encouraged to study the Exposure Draft and provide feedback to MASB.
The exposure period expires on 19 February 2010. The Exposure Draft is now available.