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Due to the further extension of Movement Control Order (“MCO”) announced by the Government on 25 March 2020, Bursa Malaysia had on 26 March 2020 announced additional relief measures to alleviate the impact of Covid-19 on capital market players.

In order to facilitate the affected companies to prepare and audit the financial statements and reports announcement and comply with the requirements of the CA 2016 due to the implementation of MCO, Companies Commission of Malaysia (“SSM”) had on 1 June 2021 issued Practice Directive No. 8/2021 to clarify the special procedures for companies to apply for an extension of time to hold an AGM or to submit a financial statement and reports.

Annual financial statements will always be a critical communication to investors and other stakeholders. But how effective will they be in explaining to your stakeholders how the global COVID-19 pandemic has affected your organisation?

The Securities Commission Malaysia and Bursa Malaysia Berhad today announced temporary relief measures for listed issuers in addition to those introduced in 2020. These additional measures will allow listed issuers more time to prepare their financial statements and put in place regularisation plans amid the Covid-19 pandemic.

In support of the Government's initiatives to ease the economic pressures faced by the corporate community arising from the Covid pandemic, Companies Commission of Malaysia (“SSM”) had on 7 April 2020 (Revised 27 January 2021) issued Practice Directive No. 6/2020 to clarify the special procedures for companies to apply for an extension of time to hold an AGM or to submit a financial statement and reports

The Malaysian Accounting Standards Board (MASB) has published Interest Rate Benchmark Reform Phase 2 (Amendments to MFRS 9, MFRS 139, MFRS 7, MFRS 4 and MFRS 16), finalising its response to the ongoing reform of interest rate benchmarks around the world.

We have created this comprehensive and helpful guide that highlights the relief made available by governments in ASEAN. The various government relief measures cover the following areas: financial, corporate, tax, social and health care, and employment.

The Malaysian Accounting Standards Board (MASB) has issued Amendments to MFRS 17 'Insurance Contracts' (the Amendments). The MASB also issued an amendment to the previous insurance standard MFRS 4, 'Extension of the Temporary Exemption from Applying MFRS 9 (Amendments to MFRS 4)' so that entities can still apply MFRS 9 'Financial Instruments' alongside MFRS 17

The impact of COVID-19 is expected to have a significant impact on the going concern assumption for a large number of entities. Some entities which were previously a going concern may no longer be. Many entities will need to apply significant judgement and will be required to consider the impact of material uncertainties in assessing the entity’s ability to continue as a going concern.

Effective for financial years beginning on or after 1 January 2019, IC Interpretation 23 ‘Uncertainty Over Income Tax Treatments’ (‘the Interpretation’) requires entities to consider the potential for adverse tax determinations being made by taxing authorities while under a hypothetical tax review and record a liability (and expense) where such a finding is considered “probable”. Many entities may not experience a financial impact as a result of this, but the Interpretation remains applicable and certain disclosures may be appropriate.

Hotel industry: Surviving, adapting and preparing for the new normal

In this article 'Considerations when preparing financial statements and using alternative performance measures' we set out various ways to enhance communication on how the pandemic has impacted the financial position and performance of any reporting entity. These include sensitivity analysis, the use of alternative performance measures and changing line items that have previously been disclosed within the financial statements.

As Malaysian enters the Recovery stage, an economic recovery plan known as Pelan Jana Semula Ekonomi Negara (PENJANA) has been introduced by the Government. Our Adviser on Short-term Economic Recovery Plan (PENJANA) issued earlier is updated following further information released by the Ministry of Finance.

In accordance with MFRS 110 ‘Events after the Reporting Period’, entities are required to distinguish between subsequent events that are adjusting (ie those that provide further evidence of conditions that existed at the reporting date) and non-adjusting (ie those that are indicative of conditions that arose after the reporting date). Entities are required to update the carrying amounts of any assets or liabilities recognised in their financial statements to reflect any adjusting events that occur during the subsequent events period.

This article highlights key aspects of MFRS 15 ’Revenue from Contracts with Customers’, that are expected to be particularly relevant during the COVID-19 pandemic.

While many forms of government assistance should be accounted for by applying MFRS 120 ‘Accounting for Government Grants and Disclosure of Government Assistance’ because they meet the following definition, others should be addressed by other standards such as MFRS 112 ‘Income Taxes’.