Malaysia is set to fully converge with IFRS by 1st January 2012.
The Malaysian Financial Reporting Foundation and Malaysian
Accounting Standards Board (MASB) said by 2012 all approved
accounting standards applicable to entities other than private
entities would converge.
Malaysia has operated a two-tier financial reporting system for
private and non-private entities since 2006. The country’s
financial reporting standards were made identical to IFRS last
year.
MASB chairman Dato’ Zainal Abidin Putih said the convergence
plan would not affect private entities that were currently applying
the Private Entity Reporting Standards (PERS). Private entities
will continue to apply PERS until the MASB decides otherwise.
Dato’ Zainal added: “Since 1978, we have been incorporating the
provisions of the international standards into our local accounting
standards and today we are convinced that by becoming fully IFRS
compliant Malaysia’s capital and financial market will be further
enhanced.
“We hope that with this advanced notice, companies will have
sufficient time to prepare themselves for the changeover. Only a
few more substantive standards need to be formally adopted between
now and 2012, and we have already discussed those with the affected
parties,” he said.
Korea, India and Canada have announced plans to converge with
IFRS by 2011.
