Working Group 51 - 60

WG 51, Improvements Project

(Chairman: Mr. Andy Lee; Project Manager: MASB Secretariat)

WG 51 was responsible for the review of twelve MASB Approved Accounting Standards under the improvements project in line with MASB's convergence policy with IASB's standards in 2005.

WG 51 is also responsible for reviewing IASB's Annual Improvements and Amendments to IFRS Projects. The IASB decided to initiate an annual improvements project in 2007 as a method of making necessary, but non-urgent, amendments to IFRSs that will not be included as part of another major project.  IASB objective was to ease the burden for all concerned by presenting the amendments in a single document rather than a series of piecemeal changes.  The amendments involved accounting changes for presentation, recognition and measurement purposes and those involving terminology or editorial changes with minimal effect on accounting.


WG 52, Insurance Contracts

(Current Chairman: Mr. Ken Pushpanathan; Project Manager: Ms Angie HC Wong)

WG 52 was responsible for developing FRS 4 Insurance Contracts. This Standard prescribes the financial reporting requirements for insurance contracts by any entity that issues such contracts but covers only limited improvements to accounting for insurance contracts until the IASB completes the second phase of its project on insurance contracts. This Standard also requires disclosure that identifies and explains the amounts in an insurer's financial statements arising from insurance contracts that helps users of those financial statements understand the amount, timing and uncertainty of future cash flows from insurance contracts. This Standard replaces FRS 2022004General Insurance Business and FRS 2032004 Life Insurance Business, when adopted.

WG 52 also reviewed IASB's Discussion Paper on Preliminary Views on Insurance Contracts. The DP presents the preliminary views of the IASB on the main components of an accounting model for insurance contracts. The IASB will then review the responses to this DP and modify or confirm its preliminary views to develop for public comment an exposure draft of an IFRS.


WG 53, Financial Statement Presentation (formerly known as Performance Reporting)

(Chairman: Mr. Sukanta Dutt; Project Manager: Mr. Danny Tan Boon Wooi)

WG 53 was set up to review the presentation, disaggregation and classification of financial performance. The main focus of the project is the development of a single statement of comprehensive income. This proposal entails changes to the format of the statement of income and the basis on which items of income and expense are categorised. It is expected that there will be consequential changes to the statement of changes in equity, the cash flow statement and possibly the balance sheet as well. The working group has reviewed IASB's IAS 1 Presentation of Financial Statements (revised) which was recently issued as a MASB ED 61 Presentation of Financial Statements.

WG 53 also reviewed IASB Discussion Paper: Preliminary Views on Financial Statement Presentation (known as Phase B) on a proposed model for presenting information in the financial statements. The model is designed to make an entity's financial statements more useful by requiring entities to provide detailed information organized in a manner that clearly communicates an integrated (cohesive) financial picture of an entity.


WG 54, Financial Reporting by Small and Medium Entities (SME)

(Chairman: Dr Maliah Sulaiman; Project Manager: Mr. Danny Tan Boon Wooi)

WG 54 was responsible for developing MASB ED 52 Private Entity Reporting Standards (PERS). The proposed Standard prescribes the cost bases to measure assets and liabilities of private entities. It removes certain disclosure requirements that are required in Financial Reporting Standards (FRSs). The idea is balancing the cost and benefits of financial information to owners and shareholders of privately run companies.

The working group was initially set up in 2004 to review the IASB's Discussion Paper - Preliminary Views on Accounting Standards for Small and Medium-sized Entities. WG 54 also reviewed IASB's exposure draft of a proposed IFRS for Small and Medium-sized Entities.  The aim of the proposed standard is to provide a simplified, self-contained set of accounting principles that are appropriate for smaller, non-listed companies and are based on full IFRSs developed primarily for listed companies.


WG 55, Disposal of Non-Current Assets and Presentation of Discontinued Operations

(Chairman: Encik Mahdi Mohd Ariffin; Former Chairman: Y.Bhg. Datuk Azizan Hj. Abdul Rahman; Project Manager: Ms. Josephine Edward)

WG 55 was responsible for developing FRS 5 Non-current Assets Held For Sale and Discontinued Operations. This Standard prescribes the accounting treatment for assets held for sale, and the presentation and disclosure of discontinued operations. It requires assets that meet the criteria to be classified as held for sale to be measured at the lower of carrying amount and fair value less costs to sell, and depreciation on such assets to cease. Assets that meet the criteria to be classified as held for sale are to be presented separately on the face of the balance sheet and the results of discontinued operations to be presented separately in the income statement. WG 55 also reviewed IASB's proposed Amendments to IFRS 5 Discontinued Operations which proposes to revise the definition of discontinued operations and require additional disclosure related to components of an entity that have been (or will be) disposed of.


WG 56, Non-Financial Liabilities

(Chairman: Ms. Ng Mi Li ; Project Manager: Mr. Stephen Oong Kee Leong)

WG 56 was set up to review the IASB's proposed amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets and IAS 19 Employee Benefits. This project calls for a revision to FRS 1372004Provisions, Contingent Liabilities and Contingent Assets and limited amendment to FRS 119 Employee Benefits.


WG 57, Financial Instruments: Disclosures

(Chairman: Y.Bhg. Datuk Oh Chong Peng; Project Manager: Mr. Chan Hooi Lam)

WG 57 was responsible for developing FRS 7 Financial Instruments: Disclosures. This Standard requires entities to provide disclosures in their financial statements that enable users to evaluate the significance of financial instruments for the entity's financial position and performance; and the nature and extent of risks arising from financial instruments to which the entity is exposed during the period and at the reporting date, and how the entity manages those risks. The principles in this IFRS complement the principles for recognising, measuring and presenting financial assets and financial liabilities in FRS 132 Financial Instruments: Presentation and FRS 139 Financial Instruments: Recognition and Measurement.


WG 58, Management Commentary

(Chairman: Mr. Martin Giles Manen; Project Manager: MASB Secretariat)

WG 58 was set up in 2006 to review IASB's Discussion Paper on Management Commentary. This discussion paper recommended that work should begin on a project to examine the potential for the IASB to develop standards or guidance for management commentary (MC). The IASB will regard the Discussion Paper as the first stage in its due process if it adds the project to its agenda.


WG 59, Operating Segments

(Chairman: Mr. Thaya Sangara Pillai; Project Manager: Dr. Susela Devi)

WG 59 was responsible for developing FRS 8 Operating Segments . This Standard requires an entity to disclose information to enable users of its financial statements to evaluate the nature and financial effects of the types of business activities in which it engages and the economic environments in which it operates.


WG 60, Financial Instruments: Recognition & Measurement

(Chairman: Mr. Chan Hooi Lam; Project Manager: MASB Secretariat)

WG 60 was responsible for issuing MASB ED 63 Amendments to Standards on Financial Instruments which comprise of:

(1) Amendments to FRS 132 Financial Instruments: Presentation and MASB ED 61 Presentation of Financial Statements - Puttable Financial Instruments and Obligations Arising on Liquidation. This Amendment require some puttable financial instruments and some financial instruments that impose on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation to be classified as equity.

(2) Amendments to FRS 139 Eligible Hedged Items. This Amendment clarify how the principles that determine whether a hedged risk or portion of cash flows that is eligible for designation should be applied in particular situations.

(3) Amendments to FRS 139 Reclassification of Financial Assets. This Amendment permits an entity to reclassify non-derivative financial assets (other than those designated at fair value through profit or loss by the entity upon initial recognition) out of the fair value through profit or loss category in particular circumstances. It also permits an entity to transfer from the available-for-sale category to the loans and receivables category a financial asset that would have met the definition of loans and receivables (if the financial asset had not been designated as available for sale), if the entity has the intention and ability to hold that financial asset for the foreseeable future.

WG 60 also reviewed IASB's draft documents on:

(1) Financial Instruments with Characteristics of Equity. This document considers the distinction between liability and asset instruments and equity instruments.

(2) Reducing Complexity in Reporting Financial Instruments. This paper discusses the main causes of complexity in reporting financial instruments and the possible intermediate and long-term approaches to improving financial reporting and reducing complexity.

(3) IFRS 7 Improving Disclosures about Financial Instruments which proposes to enhance disclosures about fair value measurements and the liquidity risk of financial instruments.


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