MASB issues revised Conceptual Framework (30 April 2018)

The Malaysian Accounting Standards Board (MASB) has today issued a revised Conceptual Framework for Financial Reporting and amendments to fourteen Standards under the Malaysian Financial Reporting Standards Framework. The revised Conceptual Framework and Amendments to References to the Conceptual Framework in MFRS Standards are word-for-word the pronouncements issued by the International Accounting Standards Board.

This revised Conceptual Framework comprises a comprehensive set of concepts for financial reporting. It is built on the previous version of the Conceptual Framework for Financial Reporting issued in 2011. The changes to the chapters on the objective of financial reporting and qualitative characteristics of useful financial information are limited, but with improved wording to give more prominence to the importance of providing information needed to assess management’s stewardship of the entity’s economic resources.

Other improvements of the revised Conceptual Framework include a new chapter on measurement, guidance on reporting financial performance, improved definitions and guidance—in particular the definition of a liability—and clarifications in important areas, such as the role of prudence and measurement uncertainty in financial reporting.

The MASB Chairman, Encik Mohamed Raslan, explains: “The Conceptual Framework is not a Standard and it does not override any Standard or any requirement in a Standard. Its main uses are to assist the Board in developing Standards, to assist preparers in developing accounting policies when no Standard applies to a particular transaction or other event (or when a Standard allows a choice of accounting policy) and to assist all parties in understanding and interpreting Standards.

The amendments to the fourteen Standards are to update the references and quotations in these Standards so as to clarify the version of the Conceptual Framework these Standards refer to.

The amendments are effective for annual periods beginning on or after 1 January 2020.

The “Notice of Issuance” can be downloaded here.


For enquiries, please contact:

Malaysian Accounting Standards Board

Unit 13A-1, Menara MBMR
No. 1, Jalan Syed Putra
58000 Kuala Lumpur

Tel: 03-2273 3100

Fax: 03-2273 9400

Email: technical@masb.org.my