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Impact of MPSAS to financial reporting
Jabatan Akauntan Negara Malaysia
May 2017
The information contained herein is of a general nature and is not intended to address the circumstances of any
particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no
guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the
future. No one should act on such information without appropriate professional advice after a thorough examination
of the particular situation.
© 2017 KPMG PLT, a limited liability partnership established under
Malaysian law is a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was
registered on 27.12.2016 and from the date thereof, was converted from a
conventional partnership, KPMG, to a limited liability partnership. All rights
reserved. Printed in Malaysia.
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
1
Impact of MPSAS to financial reporting
Jabatan Akauntan Negara Malaysia
Thong Foo Vung
18 May 2017
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
2
What is Malaysian Public Sector
Accounting Standard (“MPSAS”)?
• MPSAS is also known as ”Piawaian Perakaunan Sektor Awam Malaysia”
issued by Accountant General’s Department.
• MPSASs are converged with IPSASs.
• Applicable to all public sector except for Government Business Enterprises
(“GBEs”).
• Effective for the statutory body on or after 1 January 2020 [Letter dated 20
January 2017].
Impact of MPSAS to financial reporting
Jabatan Akauntan Negara Malaysia
May 2017
The information contained herein is of a general nature and is not intended to address the circumstances of any
particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no
guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the
future. No one should act on such information without appropriate professional advice after a thorough examination
of the particular situation.
© 2017 KPMG PLT, a limited liability partnership established under
Malaysian law is a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was
registered on 27.12.2016 and from the date thereof, was converted from a
conventional partnership, KPMG, to a limited liability partnership. All rights
reserved. Printed in Malaysia.
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
3
Why government bodies do not
apply MFRS?
• MFRS are drawn for entities that make profits and
generate return on equity investor.
• Key characteristic that differ from other entities which
makes MFRS not suitable for public sectors:
a) Volume and financial significance of non-exchange
transactions
b) Assets held by the public sector are normally held
to provide service rather than generating profits
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
4
Definition of Government Business
Enterprises (“GBE”)Criteria of a GBE:
a) An entity with power to contract in its own name
b) Has been assigned the financial and operational authority to carry on a business
c) Sell goods and services, in the normal course of business with profit or full cost recovery
d) Not reliant on continuing government funding to be a going concern
e) Controlled by a public sector
Is it a GBE?
Malaysian Financial
Reporting Standards
(“MFRS”)
Malaysian Private
Entities Reporting
Standard (“MPERS”)
Malaysian Public
Services Accounting
Standards (“MPSAS”)
Yes No
Choice of either….
Definition is being
reviewed to be less
restrictive
Impact of MPSAS to financial reporting
Jabatan Akauntan Negara Malaysia
May 2017
The information contained herein is of a general nature and is not intended to address the circumstances of any
particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no
guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the
future. No one should act on such information without appropriate professional advice after a thorough examination
of the particular situation.
© 2017 KPMG PLT, a limited liability partnership established under
Malaysian law is a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was
registered on 27.12.2016 and from the date thereof, was converted from a
conventional partnership, KPMG, to a limited liability partnership. All rights
reserved. Printed in Malaysia.
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
5
Major differences between MPSAS, MFRS & MPERS
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
6
Introducing ‘service potential’ as part of the definition and recognition criteria.
Service potential
Fact pattern:
■ A local authority builds a park for the use of public.
■ There will be no entrance collection on these parks.
MFRS/MPERS
• No future economic benefit
from the operation of the park
• Expense the cost to income
statement
MPSAS
• No future economic benefit from the operation
of the park
• But it can serve the public over the next 15
years
• Capitalise as asset if:
• Probable future economic benefit or service
potential will flow to the entity
• Cost or fair value can be reliably measured
Impact of MPSAS to financial reporting
Jabatan Akauntan Negara Malaysia
May 2017
The information contained herein is of a general nature and is not intended to address the circumstances of any
particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no
guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the
future. No one should act on such information without appropriate professional advice after a thorough examination
of the particular situation.
© 2017 KPMG PLT, a limited liability partnership established under
Malaysian law is a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was
registered on 27.12.2016 and from the date thereof, was converted from a
conventional partnership, KPMG, to a limited liability partnership. All rights
reserved. Printed in Malaysia.
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
7
(MPSAS 12/MFRS 102/MPERS Section 13)
Measurement of inventory
Fact pattern:
■ A statutory body bought 500 bags of fertilizer at a cost of RM100 per bag. It is to be
sold to rural planters at a subsidise price of RM10 per bag.
■ What is the carrying value recorded under
a) MFRS?
b) MPERS?
c) MPSAS?
Framework Explanation Carrying amount
recorded
MFRS/
MPERS
MFRS & MPERS require the inventory to be
written down to net realisable value (“NRV”).
RM10 per bag
MPSAS MPSAS requires the inventory to be recognised
at the lower of cost and current replacement cost.
RM100 per bag
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
8
(MPSAS 23)
Revenue from non-exchange
transactions
Fact pattern:
■ A public school acquires a land for RM50,000 from local government.
The fair value of the land is RM100,000.
■ How is this accounted for under MPSAS?
Dr Cr
Asset (Land) 100,000 -
Cash - 50,000
Revenue - 50,000
Asset recognise at
fair value
Amount of the
increase in net
asset recognised
Impact of MPSAS to financial reporting
Jabatan Akauntan Negara Malaysia
May 2017
The information contained herein is of a general nature and is not intended to address the circumstances of any
particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no
guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the
future. No one should act on such information without appropriate professional advice after a thorough examination
of the particular situation.
© 2017 KPMG PLT, a limited liability partnership established under
Malaysian law is a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was
registered on 27.12.2016 and from the date thereof, was converted from a
conventional partnership, KPMG, to a limited liability partnership. All rights
reserved. Printed in Malaysia.
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
9
(MPSAS 23)
Non-exchange
transactions
Transaction where an entity either
receives or gives without directly
giving or receiving equal exchange
Recognition Asset and corresponding revenue
Measurement
Asset: Fair value at date of
acquisition
This is
silent
under
MFRS &
MPERS
Revenue from non-exchange
transactions (continued)
Revenue: Amount of the increase
in net asset recognised
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
10
Impairment of non-cash generating
assetsFact pattern:
In 2011, a government school acquired a bus for RM200,000 to provide
transportation to student living in the rural area at a minimal fair of RM1. It
has a 10 year useful life. The company that provides this transportation is
making a huge loss. The future cashflow is expected to be similar. Is there a
need to impair the buses?
Impairment indicator for MFRS/MPERS
• Observable indication of decline
in asset value
• Increase in interest rates that
would affect the discount rate
used in calculating value-in-use
• Carrying amount of asset more
than market capitalisation
• Internal evidence on declining
economic performance
Impairment indicator for MPSAS
• Cessation or near cessation
of the demand or need for
the service by the asset
• Decision to halt construction
of asset before completion or
in a usable condition
• Internal evidence on
declining service
performance
Impact of MPSAS to financial reporting
Jabatan Akauntan Negara Malaysia
May 2017
The information contained herein is of a general nature and is not intended to address the circumstances of any
particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no
guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the
future. No one should act on such information without appropriate professional advice after a thorough examination
of the particular situation.
© 2017 KPMG PLT, a limited liability partnership established under
Malaysian law is a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was
registered on 27.12.2016 and from the date thereof, was converted from a
conventional partnership, KPMG, to a limited liability partnership. All rights
reserved. Printed in Malaysia.
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
11
(MPSAS 21)
MeasurementImpairment loss =
Carrying amount > recoverable service
amount
Recoverable service
amountHigher of non-cash-generating asset’s fair
value less costs to sell and value in use.
Present value (PV) of it’s remaining service
potential.
3 approaches to measure value-in-use:
• Depreciated replacement cost approach
• Restoration cost approach
• Service units approach
Value in use of non-
cash-generating asset
Impairment of non-cash generating
assets (continued)This is
silent
under
MFRS &
MPERS
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
12
Depreciated replacement cost approach
Fact Pattern:
A local council purchases a software license for an application with its mainframe computer
costing RM350,000. It has a 7 years useful life. After 4 years, the demand for this application
has decreased by 30%. It cost RM70,000 to purchase a similar software application license.
Which approach do we use?
How much is the impairment loss?NBV at year 4 (a) 150,000 (350,000 x 3/7)
Replacement cost (b) 70,000
Depreciated replacement cost (c)
30,000 (70,000 x 3/7)
Impairment loss ( a – c) 120,000
Impairment of non-cash generating
assets (continued)
Impact of MPSAS to financial reporting
Jabatan Akauntan Negara Malaysia
May 2017
The information contained herein is of a general nature and is not intended to address the circumstances of any
particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no
guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the
future. No one should act on such information without appropriate professional advice after a thorough examination
of the particular situation.
© 2017 KPMG PLT, a limited liability partnership established under
Malaysian law is a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was
registered on 27.12.2016 and from the date thereof, was converted from a
conventional partnership, KPMG, to a limited liability partnership. All rights
reserved. Printed in Malaysia.
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
13
Fact pattern:
In 2011, a government school acquired a bus for RM200,000 to provide free transportation to
student living in the rural area. It has a 10 year useful life. In 2016, the bus was involved in an
accident costing RM40,000 for restoration. The restoration would not affect the useful life of the
bus. Purchasing a new bus would cost RM 250,000 in 2016.
Restoration cost approachWhich approach do we use?
How much is the impairment loss?NBV at year 5 (a) 100,000 (200,000 x 5/10)
Replacement cost (b) 250,000
Restoration cost (c) 85,000 ((250,000 x 5/10) – 40,000)
Impairment loss (a – c) 15,000
Impairment of non-cash generating
assets (continued)
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
14
Fact Pattern:
In 2000, a government sector bought a printing machine costing RM40 million. The estimated
useful life would be 40 million copies of books over 10 years. In 2005, a fault in the machine
caused a 25% reduction in the machine’s annual output for the remaining 5 years. The
replacement cost for a new machine would be RM45 million in 2005.
Service unit approachWhich approach do we use?
How much is the impairment
loss?
NBV at year 5 (a) 20,000,000 (40,000,000 x 5/10)
Replacement cost (b) 45,000,000
Service unit cost (c) 16,875,000 ((45,000,000 x 5/10) x 75%)
Impairment loss (a-c) 3,125,000
Impairment of non-cash generating
assets (continued)
Impact of MPSAS to financial reporting
Jabatan Akauntan Negara Malaysia
May 2017
The information contained herein is of a general nature and is not intended to address the circumstances of any
particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no
guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the
future. No one should act on such information without appropriate professional advice after a thorough examination
of the particular situation.
© 2017 KPMG PLT, a limited liability partnership established under
Malaysian law is a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was
registered on 27.12.2016 and from the date thereof, was converted from a
conventional partnership, KPMG, to a limited liability partnership. All rights
reserved. Printed in Malaysia.
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
15
Onerous contracts(MPSAS 19/MFRS 137/MPERS Section 21)
Fact pattern:
A government entity enters into an agreement to clean the tank with a subsidised
amount. The cost of providing the service is expensive. Is there a provision required for
foreseeable loss?
MFRS/MPERSA provision is recognised on the present obligation
under this agreement.
MPSASAgreement entered to provide social benefits with an
expectation not recover the full cost is excluded from
this scope (paragraph 77 of MPSAS 19).
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
16
Investment property(MPSAS 16/MFRS 140/MPERS Section 16)
Fact pattern:
A government agency provides housing to low income families at a rental that is below
market value. Are these properties classified as investment property (IP) or property,
plant and equipment (PPE)?
MFRS/MPERSThe properties would be classified as IP as they are held
to generate rental income.
MPSAS The properties would be classified as PPE. Although
there is rental income earned, it is considered as
incidental revenue. These houses are held to provide
social service rather than generating income.
Impact of MPSAS to financial reporting
Jabatan Akauntan Negara Malaysia
May 2017
The information contained herein is of a general nature and is not intended to address the circumstances of any
particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no
guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the
future. No one should act on such information without appropriate professional advice after a thorough examination
of the particular situation.
© 2017 KPMG PLT, a limited liability partnership established under
Malaysian law is a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was
registered on 27.12.2016 and from the date thereof, was converted from a
conventional partnership, KPMG, to a limited liability partnership. All rights
reserved. Printed in Malaysia.
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
17
Related parties disclosure(MPSAS 20/MFRS 124/MPERS Section 33)
Fact pattern:
Agency A is a government agency. It transacts with both other government agencies and
non-government agencies. How are these transactions disclosed in the financial
statements?
MFRSDisclosure is only needed for significant transaction with
government-related entities. There is an element of
judgement involved here.
MPERSEntity is exempted from disclosure on transactions with
government-related entities.
MPSAS There is no such exemption provided under MPSAS.
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
18
(MPSAS 24)
Comparison of the actual financial performance against
approved budget is required.
Reporting of budgets versus actual
There is no such
requirement under
MFRS & MPERS
Impact of MPSAS to financial reporting
Jabatan Akauntan Negara Malaysia
May 2017
The information contained herein is of a general nature and is not intended to address the circumstances of any
particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no
guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the
future. No one should act on such information without appropriate professional advice after a thorough examination
of the particular situation.
© 2017 KPMG PLT, a limited liability partnership established under
Malaysian law is a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was
registered on 27.12.2016 and from the date thereof, was converted from a
conventional partnership, KPMG, to a limited liability partnership. All rights
reserved. Printed in Malaysia.
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
19
(MPSAS 24)
Reporting of budgets versus actual
(continued)Presented as a
separate
statement
Source: Illustrative example of MPSAS 24
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
20
Alternative
method
Source: Illustrative example of MPSAS 24
(MPSAS 24)
Reporting of budgets versus actual
(continued)
Impact of MPSAS to financial reporting
Jabatan Akauntan Negara Malaysia
May 2017
The information contained herein is of a general nature and is not intended to address the circumstances of any
particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no
guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the
future. No one should act on such information without appropriate professional advice after a thorough examination
of the particular situation.
© 2017 KPMG PLT, a limited liability partnership established under
Malaysian law is a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was
registered on 27.12.2016 and from the date thereof, was converted from a
conventional partnership, KPMG, to a limited liability partnership. All rights
reserved. Printed in Malaysia.
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
21
Explanation of
material
differences
between budget
and actual
Source: Illustrative example of MPSAS 24
(MPSAS 24)
Reporting of budgets versus actual
(continued)
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
22
Reconciliation
Source: Illustrative example of MPSAS 24
(MPSAS 24)
Reporting of budgets versus actual
(continued)
Impact of MPSAS to financial reporting
Jabatan Akauntan Negara Malaysia
May 2017
The information contained herein is of a general nature and is not intended to address the circumstances of any
particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no
guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the
future. No one should act on such information without appropriate professional advice after a thorough examination
of the particular situation.
© 2017 KPMG PLT, a limited liability partnership established under
Malaysian law is a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was
registered on 27.12.2016 and from the date thereof, was converted from a
conventional partnership, KPMG, to a limited liability partnership. All rights
reserved. Printed in Malaysia.
© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.
Document Classification: KPMG Confidential
23
Consideration for conversion to
MPSAS
MPSAS
Thank you
Impact of MPSAS to financial reporting
Jabatan Akauntan Negara Malaysia
May 2017
The information contained herein is of a general nature and is not intended to address the circumstances of any
particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no
guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the
future. No one should act on such information without appropriate professional advice after a thorough examination
of the particular situation.
© 2017 KPMG PLT, a limited liability partnership established under
Malaysian law is a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was
registered on 27.12.2016 and from the date thereof, was converted from a
conventional partnership, KPMG, to a limited liability partnership. All rights
reserved. Printed in Malaysia.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
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© 2017 KPMG PLT, a limited liability partnership established under Malaysian law is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG PLT (LLP0010081-LCA) was registered on 27.12.2016 and from the date thereof, was converted from a conventional partnership, KPMG, to a limited liability partnership. All rights reserved. Printed in Malaysia.