18 August 2009
Special Meeting with Financial Institutions and Practitioners
As FRS 139 was due for implementation on 1 January 2010, entities were concerned with the potential practical implementation issues such as the loan loss provisioning requirements, impairment of equity instruments, and one of the bigger challenges which entities would need to face in FRS 139 was related to the identification and the splitting of embedded derivatives in contracts.
As part of the MASB’s initiative to be proactive on changes in the upcoming accounting standards, the secretariat held a meeting with the financial institutions and practitioners, to take stock of the status towards implementation and to understand what issues there may still need to be addressed.
The main objectives of the meeting were to understand better the state of readiness in implementing the standard including whether simulations had been carried out and what were some of the unresolved issues in implementing the standard or interpretations that needed clarifying.
The meetings were chaired by En Mohammad Faiz (MASB Chairman) and attended by representatives from financial institutions and the accounting firms.