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recognized.
(https://www.kpmg.com/MY/en/IssuesAndInsights/ArticlesPublications/Documents/2012/Insights
-into-Msia-IFRS-ConvergenceV2.pdf) Since this MFRS framework is internationally recognized,
the account statement prepared by presuming Malaysia can be accepted in the eyes of foreign
countries and the account statements prepared by Malaysia is not secluded to only domestic
use. Therefore by switching to MFRS framework will help companies, investors, and the public
to globally compare their financial statements easier because it is internationally understood,
and it helps multinational businesses to stay up-to-date and stay competitive in the globalization
of markets. To further strengthen my point, interestingly, not much financial impact was
observed upon the convergence to MFRS because it is identical to IFRS framework in all major
aspects. (https://www.crowehorwath.net/uploadedfiles/my/insights/insights-assets/james.pdf)
to both firms applying the same financing reporting standard framework to their accounting
statements.
(http://smallbusiness.chron.com/international-financial-reporting-standards---
advantages-disadvantages-2167.html)
Moreover, consistency is not only important for comparability but it also brings unity all over the
globe in preparing financial statements. With all the countries that are reporting with IFRS, each
country can watch over each other when it comes to following the accounting standards.
(https://profalbrecht.wordpress.com/2008/12/20/why-switch-to-ifrs-from-gaap/ )
to
help
complete
various
accounting
functions
which
deem
costly.
(http://smallbusiness.chron.com/international-financial-reporting-standards---advantagesdisadvantages-2167.html)
With the new convergence of MFRS framework, financial information can be easily understood
by not only small business owners even others who have no accounting background as well.
And this will help save the cost of hiring actual professional accountants to assess the financial
accounting statements. Moreover, when owners or investors have a grasp on the financial
accounting
information,
good
decisions
(http://www.masb.org.my/press_list.php?id=16)
can
be
made
and
executed
effectively
2.4 MFRS reporting framework uses income approach to prescribe government grants (I
dont know what Im typing :/ )
MFRS reporting framework use the income approach rather than the capital approach to
prescribe requirements for government grant accounting. MFRS framework allows an entity to
record the land at the nominal amount as an alternative to fair value; and MFRS require that the
benefit of a government loan at below market rate of interest be treated as a government grant.
This means that on initial recognition, the loan itself would need to be measured at fair value
which is by discounting the future payments at the entitys current borrowing cost and accounted
for as a financial liability.
(http://masb.org.my/pdf/MPERS%20article_A%20Comparative%20Analysis%20of%20PERS
%20MPERS%20and%20MFRS%20Frameworks.pdf)
significant
investors
and
transitioning
entities
or
venturers.
(http://www.mia.org.my/new/1_tech_detail.asp?tid=6&rid=5&id=981)
provides
new guidance
for
transactions
that
were
not
previously addressed
comprehensively.
For the real estate industry, MFRS is expected to enable property developers to recognize
revenue progressively. For many straightforward retail transactions, the Board expects IFRS 15
to have little, if any, effect on the amount and timing of revenue recognition. For other contracts,
such
as
long-term
service
contracts
and
multiple-element
arrangements
example
telecommunications and automobile sectors, MFRS 15 could result in some changes either to
the amounts or timing of the revenue recognized.
situation,
which
leads
to
more
easily
read
and
useful
statements.
(http://smallbusiness.chron.com/international-financial-reporting-standards---advantagesdisadvantages-2167.html)
Reference purposes
Benefits of Accounting Convergence
(https://www.crowehorwath.net/uploadedfiles/my/insights/insights-assets/newsletter%20%20ifrs%20convergence%20_final_.pdf)
(https://www.kpmg.com/MY/en/IssuesAndInsights/ArticlesPublications/Documents/2012/I
nsights-into-Msia-IFRS-ConvergenceV2.pdf)