The Malaysian Accounting Standards Board (“MASB”) had announced on 14 February 2014 that the current Private Entity Reporting Standards (“PERS”) would be replaced with the Malaysian Private Entities Reporting Standard (“MPERS’), for financial statements beginning on or after 1 January 2016. Early adoption recommended. Although MPERS is a replacement for PERS, a private entity may not necessarily adopt MPERS. In fact, private entities have the option to apply in its entirety either the MPERS or the Malaysian Financial Reporting Standards (“MFRS”).

With both options available, it is therefore necessary to evaluate and decide on the most appropriate framework, to best suit your company’s business before end of this year. Private entities are advised to evaluate the pros and cons of the respective accounting frameworks before making any decision.