Financial Accounting and Reporting in Malaysia explains clearly the Conceptual Framework used in the preparation of financial statements for entities, including groups of companies, and how to analyse and interpret those financial statements. With a clear emphasis on local practices, accounting principles are discussed in detail to guide users on the preparation and presentation of financial statements to ensure compliance with the latest accounting pronouncements. Where applicable, comparisons are also made with statutory requirements and guidelines issued by the Securities Commission and the Central Bank of Malaysia. In addition, focus is given to providing sample comprehensive disclosures of the MFRSs that may serve as guidelines for company practices. Principles and issues are summarised, explained and demonstrated with illustrative questions and answers in each accounting chapter of this issues-based book.

Financial Accounting and Reporting in Malaysia is published in two volumes. Volume 1 is suitable for intermediate and advanced financial accounting courses, while Volume 2 is suitable for advanced financial accounting courses or postgraduate programmes, although some chapters are also ideal for a course in specialised accounting or current issues. Together, the volumes will enable the user to develop knowledge and skills in understanding and applying the MFRSs and International Financial Reporting Standards (IFRSs).

Key Features

This 7th edition of FARM 2 has been drafted to incorporate the new and amended MFRSs issued after 31 December 2017. Compared to the 6th edition, the key changes and additions in this new edition are as follows:

• Incorporating the new Definition of a Business (2018 Amendments to MFRS 3 Business Combinations).
• Expanding the Chapter on share and business valuation to include financial analysis of mergers and acquisitions.
• Adding guidance on intragroup transactions of right-of-use assets and lease liabilities arising from MFRS 16 Leases.
• Adding a new Chapter 23 that includes corporate social responsibility reporting, integrated reporting and sustainability reporting.
• Adding guidance on new IC Interpretations and Amendments to MFRSs issued after 31 December 2017.
• Adding additional guidance on intra-group share-based payment arrangements

Topic Covered

• Financial Instruments - Recognition and Derecognition
• Financial Instruments – Measurement and Reclassification
• Hedging and Hedge Accounting
• Financial Instruments - Presentation & Disclosures
• Earnings Per Share
• Mergers, Share and Business Valuation
• Business Combinations
• Reverse Acquisitions, Mergers & Combined Financial Statements
• Consolidated and Separate Financial Statements
• Advanced Consolidation Principles
• Joint Arrangements and Associates
• Disclosures of Interests in Other Entities
• The Effects of Changes in Foreign Exchange Rates
• Consolidated Statement of Cash Flows
• Segment Reporting
• Related Party Disclosures
• Banks and Similar Financial Institutions
• Insurance Entities
• Investment Trust Funds
• Agriculture Entities
• Extractive Industries
• Interim Reporting
• Management Commentary, Corporate Governance, Sustainability Reporting & Social and Voluntary Reporting

Authors

Tan Liong Tong , Technical Consultant to Mazars Malaysia

Tan Liong Tong was previously an Associate Professor at the Graduate School of Management, Universiti Putra Malaysia. He is member of the Malaysian Institute of Certified Public Accountants (MICPA) and the Malaysian Institute of Accountants (MIA).

Mr. Tan is the current project manager of the MASB Working Group on Consolidation. He has served in various working committees of the Malaysian professional accountancy bodies, including being a Council member of the MICPA and a member of its Accounting and Auditing Technical Committee, and a member of the Accounting & Auditing Standards Committees of the MIA. He has also served as a Technical Advisor to the Financial Reporting Standards Implementation Guidance Committee of the MIA. He was previously engaged as a Technical Consultant to the Malaysian Accounting Standards Board (MASB) and the Securities Commission (SC). He was a member of the Editorial Panel of the Institute of Bankers’ Journal. He had also served as an external or chief examiner, an academic advisor, a consultant to various institutions and organizations, and as a project manager for various working groups of the MASB that developed MASB Standards.

1. Consolidated Financial Statements, 9th edition,
2. Malaysian Private Entities Reporting Standard – the MPERS Framework, 2nd edition,
3. Illustrative MPERS Financial Statements – with Commentaries and Guidance Notes, 2nd edition,
4. A Comprehensive Guide to IFRS 15 and IFRS 16, 2nd edition,
5. Financial Instruments: Recognition, Measurement, Presentation & Disclosures, 4th edition,
6. Business Combinations and Consolidation, 2nd edition,
7. Share Buybacks and Financial Assistance,
8. Financial Management,
9. Deferred Taxation, 4th edition,
10. An Application Handbook on MASB 25 Income Taxes,
11. An Application Handbook on FRS 136 Impairment of Assets,
12. An Application Handbook on FRS 111 Construction Contracts & FRS 201 Property Development Activities,
13. AccMan Malaysia - The Accountant’s Manual.