The Malaysian Accounting Standards Board Accounting Essay

MFRS 101-Presentation of Financial Statements prescribes the footing for presentation of general purpose fiscal statements to guarantee comparison both with the entity ‘s fiscal statements of old periods and with the fiscal statements of other entities. It sets out overall demands for the presentation of fiscal statements, guidelines for their construction and minimal demands for their content.
Purpose of fiscal statements
Fiscal statements are a structured representation of the fiscal place and fiscal public presentation of an entity. The aim of fiscal statements is to supply information about the fiscal place, fiscal public presentation and hard currency flows of an entity that is utile to a broad scope of users in doing economic determinations. Fiscal statements besides show the consequences of the direction ‘s stewardship of the resources entrusted to it. A complete set of fiscal statements comprises:

( a ) a statement of fiscal place as at the terminal of the period
( B ) a statement of comprehensive income for the period
( degree Celsius ) a statement of alterations in equity for the period
( vitamin D ) a statement of hard currency flows for the period
( vitamin E ) notes, consisting a sum-up of important accounting policies and other explanatory information
( degree Fahrenheit ) a statement of fiscal place as at the beginning of the predating period when an entity applies an accounting policy retrospectively or makes a retrospective restatement of points in its fiscal statements, or when it reclassifies points in its fiscal statements.
An entity may utilize rubrics for the statements other than those used in this Standard. For illustration, an entity may utilize the rubric ‘statement of comprehensive income ‘ alternatively of ‘statement of net income or loss and other comprehensive income ‘ .
Statement of fiscal place Information to be presented in the statement of fiscal place. As a lower limit, the statement of fiscal place shall include line points that present the undermentioned sums:
( a ) belongings, works and equipment ;
( B ) investing belongings ;
( degree Celsius ) intangible assets ;
( vitamin D ) fiscal assets ( excepting sums shown under ( vitamin E ) , ( H ) and ( I ) ) ;
( vitamin E ) investings accounted for utilizing the equity method ;
( degree Fahrenheit ) biological assets ;
( g ) stock lists ;
( H ) trade and other receivables ;
( I ) hard currency and hard currency equivalents ;
( J ) the sum of assets classified as held for sale and assets included in disposal groups classified as held for sale in conformity with MFRS 5 Non-current Assetss Held for Sale and Discontinued Operations ;
( K ) trade and other payables ;
( cubic decimeter ) commissariats ;
( m ) fiscal liabilities ( excepting sums shown under ( K ) and ( cubic decimeter ) ) ;
( N ) liabilities and assets for current revenue enhancement, as defined in MFRS 112 Income Taxes ;
( O ) deferred revenue enhancement liabilities and deferred revenue enhancement assets, as defined in MFRS 112 ;
( P ) liabilities included in disposal groups classified as held for sale in conformity with MFRS 5 ;
( Q ) non-controlling involvements, presented within equity ; and
( R ) issued capital and militias attributable to proprietors of the parent
An entity shall clearly place each fiscal statement and the notes. In add-on, an entity shall expose the undermentioned information conspicuously, and repetition it when necessary for the information presented to be apprehensible:
( a ) the name of the coverage entity or other agencies of designation, and any alteration in that information from the terminal of the predating coverage period ;
( B ) whether the fiscal statements are of an single entity or a group of entities ;
( degree Celsius ) the day of the month of the terminal of the coverage period or the period covered by the set of fiscal statements or notes ;
( vitamin D ) the presentation currency, as defined in MFRS 121 ; and
( vitamin E ) the degree of rounding used in showing sums in the fiscal statement.
Current/non-current differentiation
An entity shall show current and non-current assets, and current and non-current liabilities, as separate categorizations in its statement of fiscal place in conformity with except when a presentation based on liquidness provides information that is dependable and more relevant. When that exclusion applies, an entity shall show all assets and liabilities in order of liquidness.
Current assets
An entity shall sort an plus as current when:
( a ) it expects to gain the plus, or intends to sell or devour it, in its normal operating rhythm.
( B ) it holds the plus chiefly for the intent of trading.
( degree Celsius ) it expects to gain the plus within 12 months after the coverage period.
( vitamin D ) the plus is hard currency or a hard currency equivalent ( as defined in MFRS 107 ) unless the plus is restricted from being exchanged or used to settle a liability for at least 12 months after the coverage period.
An entity shall sort all other assets as non-current.
Current liabilities
An entity shall sort a liability as current when:
( a ) it expects to settle the liability in its normal operating rhythm ; MFRS 101
( B ) it holds the liability chiefly for the intent of trading ;
( degree Celsius ) the liability is due to be settled within 12s months after the coverage period ; or
( vitamin D ) it does non hold an unconditioned right to postpone colony of the liability for at least years after the coverage. Footings of a liability that could, at the option of the counterparty, consequence in its colony by the issue of equity instruments do non impact its categorization.
An entity shall sort all other liabilities as non-current,
Statement of alterations in equity
Information to be presented in the statement of alterations in equity.
An entity shall show a statement of alterations in equity. The statement of alterations in equity includes the undermentioned information demoing in the statement:
( a ) entire comprehensive income for the period, demoing individually the entire sums attributable to proprietors of the parent and to non-controlling involvements ;
( B ) for each constituent of equity, the effects of retrospective application or retrospective restatement recognised in conformity with MFRS 108 ;
( vitamin D ) for each constituent of equity, a rapprochement between the transporting sum at the beginning and the terminal of the period, individually unwraping alterations ensuing from:
( I ) net income or loss ;
( two ) each point of other comprehensive income ; and
( three ) minutess with proprietors in their capacity as proprietors, demoing separately parts by and distributions to proprietors and alterations in ownership involvements in subordinates that do non ensue in a loss of control. Information to be presented in the statement of alterations in equity or in the notes.
For each constituent of equity an entity shall show, either in the statement of alterations in equity or in the notes, an analysis of other comprehensive income by point.
An entity shall show, either in the statement of alterations in equity or in the notes, the sum of dividends recognised as distributions to proprietors during the period, and the related sum of dividends per portion.