MASB issues new accounting standard on regulatory assets and liabilities

The Malaysian Accounting Standards Board (MASB) has issued Malaysian Financial Reporting Standards 20(MFRS 20) (Regulatory Assets/Liabilities).

The authorization has besides issued amendments to the just worth enactment for investments successful associates and associated ventures (Amendments to MFRS 128 Investments successful Associates and Joint Ventures).

MASB noted that some pronouncements are verbatim equivalents of the IASB's IFRS 20 and Amendments to IAS 28.

The caller MFRS 20 is intended to heighten fiscal reporting for entities that are taxable to a circumstantial benignant of complaint regulation.

It is aimed astatine helping investors recognize much intelligibly however that complaint regularisation influences an entity's fiscal performance, fiscal presumption and prospects for aboriginal currency flows.

An entity applies MFRS 20 erstwhile it is enactment to a regulatory statement that gives emergence to regulatory assets and regulatory liabilities.

The Standard is founded connected the rule that a institution recognises compensation for regulatory goods oregon services successful the aforesaid play successful which those goods oregon services are supplied.

It is expected to impact companies successful sectors specified arsenic utilities, vigor and transportation.

MFRS 20 becomes effectual for yearly reporting periods opening connected oregon aft 1 January 2029, with earlier exertion allowed, and it replaces MFRS 14 Regulatory Deferral Accounts.

Meanwhile, the Amendments to MFRS 128 Investments successful Associates and Joint Ventures clarify which entities are eligible to measurement investments successful associates and associated ventures astatine just worth done nett oregon nonaccomplishment successful accordance with MFRS 9 Financial Instruments, nether the just worth enactment provided successful MFRS 128.

Applying this just worth enactment has a nonstop interaction connected however an entity classifies income and expenses successful the connection of nett oregon nonaccomplishment nether MFRS 18 Presentation and Disclosure successful Financial Statements.

An entity is required to use the amendments erstwhile it applies MFRS 18, that is, for yearly reporting periods opening connected oregon aft 1 January 2027, oregon earlier if it elects to follow MFRS 18 up of that date.

"MASB issues caller accounting modular connected regulatory assets and liabilities" was primitively created and published by The Accountant, a GlobalData owned brand.