/StructTreeRoot 6 0 R In August 2008, the MASB announced its plan to converge Malaysian Financial Reporting Standards (MFRS) with IFRS Standards in 2012. endobj /Interpolate false MFRS Application and Implementation Committee (MAIC) Working Groups (WG) Secretariat Career Standard-setting Due Process Our Standards MASB Approved Accounting Standards for Entities Other than Private Entities ��j�8u�飹����/���.R��� ��c���>9|�XNM���r��#���_|.OTq_��GiQ�S�RT��v�u�T�bKה��Hv�ə"�2E*�tTǔ�0��!�ԺCLo��*��m����E�}��В�f���=�4�E�t�=�r[ڦ��`�۶�ڷ��T��bja������u�i^L��_�2�G�x�4�*�Ϙ�d�|0���Ӂ��u|�g��!����h1�����`�������1��&�K�?#���V�U����at�,����~��S��T���. 4.1 MFRS 136/ FRS 136 requires that when an asset may be impaired, the recoverable amount of the asset should be estimated and if the carrying amount of the asset exceeds its recoverable amount, an impairment loss should be recognised as an expense in the income statement immediately, unless the asset is carried at revalued amount which should be treated as revaluation decrease. In August 2008, the MASB announced its plan to converge Malaysian Financial Reporting Standards (MFRS) with IFRS Standards in 2012. _���c����&3]f�n���=�T݆4v��3���[�MK����tj��'����`$u�n��Y���vO&��:v\�ii�S�`���|ᖝ�����{���O����B:�= FREQUENTLY-ASKED QUESTIONS (FAQs) ON MFRS 9 FINANCIAL INSTRUMENTS Page 2 of 21 Bangsar South City,No.8, Jalan Kerinchi, 59200 Kual Dewan Akauntan, Unit … IAS 36 Impairment of Assets 2017 - 07 2 An assets value in use is the present value of the future cash flows expected to be derived from an asset or cash generating unit. DERECOGNITION RECLASSIFICATION HEDGE ACCOUNTING CATEGORIES OF FINANCIAL ASSETS Financial Instruments at Fair Value through Profit or Loss (FVPL) Financial instruments that cannot be reclassified: (a) Derivatives (b) Instruments designated on initial recognition at FVPL (c) No About Press Copyright Contact us Creators Advertise Developers Terms Privacy Policy & Safety How YouTube works Test new features Overview. <>>> stream 3 0 obj The MFRS Framework comprises Standards as issued by the International Accounting Standards Board (IASB) that are effective on 1 January 2012. LET'S HAVE SOME POP QUIZ!! 63 To determine whether an item of property, plant and equipment is impaired, an entity applies MFRS 136 Impairment of Assets. ?���e2o?����R��F�ݾ��\� �\��&猳%��@��������3���Cc��̑+aʦT;�h�T��Y �2~���8|z���u6�>�C��Prحy��ڊ2��j�� p�8/u��Х99 �)��:|������� ���r��#g�^�$��V 7T�q� ���D �#�e��.p] B� � ��Tt@ �. requirements of the MFRS 136 - Impairment of Assets mandatory progressively since 1 January 2006 for some or all listed firms. In 2019, the latest IASB lease accounting standard, IFRS 16, began to go into effect for companies worldwide. In accordance with AASB 136, reassessing the useful life of an intangible asset as finite rather than indefinite is an indicator that the asset may be impaired. }�t�ea�����������8k֬��Լ����ʖ�t�NAA�w�A���vtt�[�H��B�c�%�:����/Z�(==�������O�>�K��ԑ�r�d��Ç��������Qᖖ�>x����ת"H��70l�u�֠� ++�w-�0�A$�`ff�����޽{H ���#!����ʪ����HD�A�@�P]]��a�w��F"e�����?�Hަ��ЫW��/�w'�;�={��l�� �2$B�� גx��%�F//�w�� �2$B�� גH���_Q> Oxך���!B�����۷o+**��ʯDʐ�K�\K��իWG����}�����7!���;%%�1���\]]�۔��������������ߵJ���&1 �{r-�0����.�� -$BxoA�%�. What is the objective of IAS 36? MFRS 136 If an entity carries goodwill or an intangible asset with indefinite useful life, impairment test must be performed annually or more frequently when impairment is evident, regardless of whether there is any indication of impairment. QUESTION 2 (25 MARKS) A. You might already know SAP consulting is currently one of the best paying career in the IT industry. Under MFRS 16, a lease is defined as a contract or part of a contract that conveys the right to use an identifiable asset over a period of time in exchange for consideration. The Standard also defines when an asset is impaired, how to recognize an impairment loss, when an entity should reverse this loss and what information related to impairment should be disclosed in the financial statements. %PDF-1.5 << c�a�e,��q{JJd�S2�R�O���rD B��A�� ��^l�U��q�J�E8K��� U�⬱}��G��)Bɘ�M> /Width 347 The checklist was based on the requirement of disclosure of MFRS 136 (amended in 2009) and the annual endobj While Java and Oracle have had a steady decline of salary in recent times, SAP consulting has survived and still being lucrative to many aspiring consultants. zThe cost of a major overhaul or inspection is treated as a part (“component”) of the costs of an asset. IAS 36 seeks to ensure that an entity's assets are not carried at more than their recoverable amount (i.e. The Malaysian Financial Reporting Standards (MFRS) – This is the MASB approved accounting standards for entities, but this does not include private entities; Private Entity Reporting Standards (PERS) – This is the MASB approved accounting standards for all private entities. Recoverable amount should then be determined for the asset's cash-generating unit (CGU) 1 0 obj >> x��Y�k�F?��a���zg�B�q��B � }(}0��1�Nr /Subtype /Image MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance. /Metadata 4 0 R endstream Microsoft® Word 2016 The objective of the MFRS 136 Impairment of assets is to prescribe the procedures that an entity applies to ensure that its assets are not impaired. MFRS 136 applies to: answer choices Subsidiaries, Associates and Joint Ventures Inventories (MFRS 102) Construction Contract (MFRS 15) Employee Benefits (MFRS 119) Tags: Question 3 SURVEY 10 seconds Q. Kai Chean %PDF-1.5 Here's what you need to know and practical application guidance from PwC. However, the effective date and issuance date that contained in MFRS 136 is those of the IASB’s and is inapplicable in the new MFRS framework since MFRS 1: First-time Adoption of Malaysia Financial Reporting Standards requirements 1 will be applied on 1 January 2012. /MarkInfo << >> << In such a case then the asset will belong to a larger group that does generate cash. w�e$n���"���.D�H�!����~����ݯ�}�^+��W])�t�{Ϲ�|�w�w8~��w�}����u�ք���3g8;;���ZZZ���������v�_~�7o޻2>��C�/��?����� �������X�69`dddjj�ꧻ� �M��/_^�~}߾}���4h�������! Impairment of Assets (MFRS 136… They include the following: (a) Historical cost. %���� Executive summary (cont’d) the basis of high residual value (therefore immaterial depreciation charges) is no longer valid. MFRS 13 FAIR VALUE MEASUREMENTS Conceptual Framework 4.55 A number of different measurement bases are employed to different degrees and in varying combinations in financial statements. Investment Property (MFRS 140) a) Applicable standard and scope b) Property classified as investment property c) Recognition d) Measurement at recognition e) Measurement after recognition f) Transfers g) Derecognition h) Disclosure 9. They include the following: (a) Historical cost. /Type /Metadata DEPRECIATION SOLUTION Impairment is defined as a loss in the value of an individual asset or cash-generating unit(CGU). 8. Academia.edu is a platform for academics to share research papers. Subsidiaries, Associates and Joint Ventures. x��] PTW�f���(�"�?#���8� A~�_qp�h�P��'J! /Pages 5 0 R Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. MFRS 136 Impairment of Assets Scope Property, plant and equipment (carried at cost or revalued amount) Goodwill Investment property (if carried at cost) … MFRS 14 Regulatory Deferral Accounts MFRS 132 Financial Instruments: Presentation MFRS 15 Revenue from Contracts with Customers MFRS 133 Earnings Per Share MFRS 101 Presentation of Financial Statements MFRS 134 Interim Financial Reporting MFRS 102 Inventories MFRS 136 Impairment of Assets MFRS 107 Statement of Cash Flows MFRS 137 stream 3.5.1 MFRS 136/ FRS 136 allows the annual impairment test for CGU to which goodwill has been allocated to be performed at any time during an annual reporting period, provided it is conducted at the same time every year. The Australian Accounting Standards Board is responsible for developing, issuing and maintaining Australian accounting standards and related pronouncements 2 0 obj MFRS 136 Impairment of Assetsand MFRS 110 Events after the Reporting Period| Deloitte Academy - Webinar. 23 0 obj However, the resulting carrying amount of such an asset and related assets is reviewed for impairment in accordance with MFRS 136 Impairment of Assets. The most notable change is the elimination of the operating lease classification. /Lang (en-US) Subsequent costs 12 Under the recognition principle in paragraph 7, an entity does not recognise in the carrying amount of an item of property, plant and equipment the costs of the day-to-day servicing of the item. 10 seconds . MFRS 16 7 Preface The Malaysian Accounting Standards Board (MASB) is implementing its 2 0 obj Among other requirements, IFRS 16 required that most leases be capitalized and recorded on the balance sheet, changed how they’re reported, and eliminated most operating (non-capitalized) leases. See this press release. The unweighted index was established by constructing the index checklist. :�;�8A���Dρ8�xn_�W��W���9c-�Pt��\Hͬ�0m=������3z�� �y�gR�x���hZ���ݞV[�k����u �i<8qJ��Bڼ���8���ݷ��kϮn� �P���$�W�]����]��^]\Ė`7�NJT'�P3c�%ږ�f5{ e�s6��v��B�;��5�����]�;�M��� �� �.A+H�� �� ��T��"4p�[�)�A�Q��B�F�5&V����3��d��\ۜK��N�\ �����T��R�Ɂ�3I�w���a#$'��!؉[b-��cEF�����ץ.�ʁoӋ���E:�S��bw�S�.�� The recoverable amount should then be determined for the asset ’ s carrying amount exceed the amount... ) a zthe costs of an asset ( IAS 36.80-87 ) to the CGU benefits. Impairment is defined as a loss in the state of Michigan been effective. Of Assets basis to individual CGUs, it is allocated to groups of.. 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