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: The 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 WG level on IASB's draft pronouncements
The IASB's draft pronouncements and public comments received will be deliberated by the WG. After due deliberation, the WG will provide comments and recommendations to the issues raised in the draft pronouncements for the MASB's consideration.
Stage 3 & 4: Deliberation by the MASB
All public comments received, WG's comments and recommendations will be tabled to the MASB for deliberation and consideration. During the discussion, the MASB will consider all comments received and thereafter, a comment letter to the IASB will be prepared and submitted to the IASB accordingly.
Stage 5, 6 & 7: Issuance of Standard by the IASB
Following publication of the new or amended IFRS by the IASB, the WG will deliberate on the changes made, if any, to the draft pronouncements. Thereafter, the WG's recommendations including possible issues/ implications, if any, of the IFRS will be presented to the MASB for consideration.
Stage 8,9 & 10: Issuance of standard by the MASB
After due deliberation by the MASB, a copy of the MFRS (word-for-word IFRS) 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: