ACCOUNTING

Malaysia Defers Accounting Changes for Associates and Joint Ventures

The Malaysian Accounting Standards Board has deferred the effective date of Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to MFRS 10 and MFRS 128).

However early application of ‘Amendments to MFRS 10 and MFRS 128’, which clarifies how an entity should determine any gain or loss it recognises when assets are sold or contributed between the entity and an associate or joint venture in which it invests, is still permitted.

Similarly, the effective date of Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to FRS 10 and FRS 128) is also deferred.

The deferment is in line with the International Accounting Standards Board’s (IASB) recent decision which removed the requirement to apply Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28) by 2016.

The IASB’s reason for making the decision to defer the effective date is that the IASB is planning a broader review that may result in the simplification of accounting for such transactions and of other aspects of accounting for associates and joint ventures.

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