Due process of MFRS Framework
MFRSs are word-for-word IFRSs issued by the IASB except for the nomenclatures. The due process of MFRS Framework aligns the MASB's due process timeline to that of the IASB with the aim of putting the new or amended standards in place for adoption and application within a timely manner. This is to ensure that the effective date of the new or amended standards will be the same as that of IFRSs.
Stage 1: MASB seeks public comment on IASB's draft technical pronouncements.
The IASB's draft technical pronouncements include Discussion Paper, Exposure Draft and Request for Views.
MASB will disseminate the IASB draft pronouncements together with an Invitation to Comment to local constituents by publishing on MASB website a "Comment Online" feature and sending a copy of the documents to the relevant authorities, professional bodies, accounting firms, industry related associations, and public listed companies.
The due date for the public to submit comments to MASB is usually one month before IASB's comment deadline so as to allow MASB Working Group and the Board a reasonable time to consider the comments received before making a submission to the IASB.
In addition, public forums may be organised if these IASB draft pronouncements represent major change or shift from current practice.
Stage 2: Deliberation at the Working Group level on IASB's draft pronouncements
The IASB's draft pronouncements will be deliberated in WG meetings and to provide comment/ recommendation to the issues raised in the draft pronouncements for the Board's consideration. The WG will also consider public comments received and their views / recommendations on those comments for the Board's consideration. (See Stage 3)
Stage 3: Deliberation at the MASB (the Board)
The public comments received, WG's comments and recommendations will be tabled at the Board for deliberation and consideration. During the discussion, the Board will consider all comments received and thereafter, a comment letter to the IASB will be prepared and submitted to IASB accordingly.
Stage 4: Issuance of Standard by IASB
Following publication of the final standard by the IASB (IFRS), the WG will deliberate on the changes made, if any, from the draft pronouncements. Thereafter, the WG's recommendation, including possible issues/ implications, if any, of the IFRS will be presented to the MASB for consideration.
Stage 5: Issuance of standard by MASB
After due deliberation by the Board, copy of the MFRS (word-for-word with IFRSs) would be presented to the FRF members for their comments before it being issued as approved accounting standards in Malaysia.
The following diagram illustrates the due process of MFRS and IC Interpretations: