 |
 |
 |
 |
 |
Accounting board issues accounting standard on retirement benefit plans and adopts accounting standard on hyperinflationary economies
Mon, 1 Jul 2002Accounting board issues accounting standard on retirement benefit plans and adopts accounting standard on hyperinflationary economies
The Malaysian Accounting Standards Board (MASB) today issued an accounting standard for retirement benefit plans set up by companies for their employees. This Standard takes effect from 1 January 2003 and supersedes MASB Approved Accounting Standard IAS 26, Accounting and Reporting by Retirement Benefit Plans.
Under the Standard, retirement benefit plans are required to prepare periodic information about the plan and the performance of its investments. The main objective is to inform parties who contribute to the plan about activities undertaken by the plan for the period, its membership, terms and conditions of such plan. Companies are also required to prepare a description of the investment policies adopted for the plan and statements reporting the transactions, investment performance during the period and the financial position of the plan at the end of the period.
"Retirement benefit plans are sometimes referred to by various other names, such as 'pension schemes', 'superannuation schemes' or '˜retirement benefits schemes'. Other than the normal employee benefits and contribution to the EPF, some companies establish separate funds for employees. Contributions are made to these funds, and out of which benefits are paid. Such funds may be administered by independent parties or trustees. This new Standard will put in place a proper reporting by retirement benefit plans. It would mean that interested parties, particularly participants of the plan can gauge the performance of the plan on an informed basis and are aware of the activities of the plan and their future benefits. Employers, on the other hand, would be interested to know the efficiency and proper operation of the plan," MASB chairman Raja Datuk Arshad Raja Tun Uda said in a statement released in Kuala Lumpur. "This Standard also complements MASB 29 Employee Benefits, which was issued in March this year," he added.
The MASB also announces the adoption of an international accounting standard, IAS 29, Financial Reporting in Hyperinflationary Economies. The adoption of this Standard as an approved accounting standard has been made in view of MASB's harmonisation policy with international financial reporting practices.
Notes:
MASB 30, Accounting and Reporting by Retirement Benefit Plans
MASB 30 governs the reporting of retirement benefit plans which include defined contribution plans and defined benefit plans. The report of a defined contribution plan should contain a statement of net assets available for benefits of employees and a description of the funding policy. The report of a defined benefit plan should contain a statement of net assets available for benefits of employees, the actuarial present value of promised retirement benefits and the resulting excess or deficits. In addition, the report of a retirement benefit plan should contain a summary of accounting policies, a description of the plan and the effect of any changes in the plan during the period.
IAS 29, Financial Reporting in Hyperinflationary Economies
IAS 29 is applied to the primary financial statements of any enterprise that reports in the currency of a hyperinflationary economy. IAS 29 requires the financial statements to be stated in terms of the measuring unit current at the balance sheet date. Gain or loss on the net monetary position should be included in net income and separately disclosed.
Under the Standard, retirement benefit plans are required to prepare periodic information about the plan and the performance of its investments. The main objective is to inform parties who contribute to the plan about activities undertaken by the plan for the period, its membership, terms and conditions of such plan. Companies are also required to prepare a description of the investment policies adopted for the plan and statements reporting the transactions, investment performance during the period and the financial position of the plan at the end of the period.
"Retirement benefit plans are sometimes referred to by various other names, such as 'pension schemes', 'superannuation schemes' or '˜retirement benefits schemes'. Other than the normal employee benefits and contribution to the EPF, some companies establish separate funds for employees. Contributions are made to these funds, and out of which benefits are paid. Such funds may be administered by independent parties or trustees. This new Standard will put in place a proper reporting by retirement benefit plans. It would mean that interested parties, particularly participants of the plan can gauge the performance of the plan on an informed basis and are aware of the activities of the plan and their future benefits. Employers, on the other hand, would be interested to know the efficiency and proper operation of the plan," MASB chairman Raja Datuk Arshad Raja Tun Uda said in a statement released in Kuala Lumpur. "This Standard also complements MASB 29 Employee Benefits, which was issued in March this year," he added.
The MASB also announces the adoption of an international accounting standard, IAS 29, Financial Reporting in Hyperinflationary Economies. The adoption of this Standard as an approved accounting standard has been made in view of MASB's harmonisation policy with international financial reporting practices.
Notes:
MASB 30, Accounting and Reporting by Retirement Benefit Plans
MASB 30 governs the reporting of retirement benefit plans which include defined contribution plans and defined benefit plans. The report of a defined contribution plan should contain a statement of net assets available for benefits of employees and a description of the funding policy. The report of a defined benefit plan should contain a statement of net assets available for benefits of employees, the actuarial present value of promised retirement benefits and the resulting excess or deficits. In addition, the report of a retirement benefit plan should contain a summary of accounting policies, a description of the plan and the effect of any changes in the plan during the period.
IAS 29, Financial Reporting in Hyperinflationary Economies
IAS 29 is applied to the primary financial statements of any enterprise that reports in the currency of a hyperinflationary economy. IAS 29 requires the financial statements to be stated in terms of the measuring unit current at the balance sheet date. Gain or loss on the net monetary position should be included in net income and separately disclosed.