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Tuesday October 13, 2009

MASB issues 4 exposure drafts


PETALING JAYA: The Malaysian Accounting Standards Board (MASB) has issued four exposure drafts (ED) on improving disclosures about financial instruments, determining whether an arrangement contains a lease, transfers of assets from customers and syariah-compliant sale contracts.

In a statement yesterday, MASB said ED 67 involved enhanced disclosure requirements that would help users evaluate an entity’s exposure to liquidity risk and how such risk was managed.

IC Intepretation 4 draft specifies that an arrangement contains a lease if it depends on the use of a specific asset and conveys a right to control the use of that asset.

Meanwhile, IC Interpretation 18 proposes to clarify the requirements of Financial Reporting Standards for agreements in which an entity receives from a customer a fixed asset that the entity must then use either to connect the customer to a network or to provide the customer with ongoing access to a supply of goods or services.

The ED i-4, on the other hand, was issued to clarify when an item should be recognised or derecognised in the statement of financial position, the treatment of a financing element that may arise, and how to account for a syariah-compliant sale contract that is part of a series of transactions.

MASB said the public was encouraged to provide feedback on the drafts, which would expire on Nov 13.

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