This book addresses the various Standards regarding accounting for financial instruments in Malaysia, with the objective of making the standards understandable and operational to accountants and accounting students.

With effect from 1 January 2018, these Standards are:

MFRS 9₍₂₀₁₄₎ Financial Instruments

MFRS 132 Financial Instruments: Presentation

MFRS 7 Financial Instruments: Disclosures.

New in this edition

Numerous updates and developments on the financial reporting standards for financial instruments are covered in this new edition, including the new IC Interpretations, MFRSs Amendments, and additions to MFRS 9 covering classification and measurement of financial assets and financial liabilities, impairment methodology and a new hedge accounting model. It also includes more detailed discussions of accounting for some common derivative instruments and complex implementation issues of the standards, such as the expected credit loss model for impairment testing and the assessment of hedge effectiveness. Also, the new Companies Act 2016 became effective for financial year/period ended 31 January 2017 and it replaces the original Companies Act 1965 in its entirety.

Key features include:

Straightforward guide:  Provides step-by-step instructions on the ways to recognise financial instruments and the various methods of measurement and presentation

Improve financial reporting: Helps users to improve proficiency in reporting their company’s financial performance

Credible and practical commentary: Authored by leading accounting professional in Malaysia, Prof Tan Liong Tong

Topics covered:

Chapter 1: Financial Instruments — Recognition and Derecognition discusses the standards on recognition and derecognition of financial assets and financial liabilities.

Chapter 2: Financial Instruments — Measurement, Reclassification & Gains and Losses discusses the measurement standards for the various categories of financial assets and financial liabilities, and the reclassification requirements.

Chapter 3: Fair Value Measurement discusses the requirements of MFRS 13 Fair Value Measurement and its application to financial instruments.

Chapter 4: Equity Share and Business Valuations explains the fundamental theories of share prices and provides guidance on estimating fair values of financial instruments.

Chapter 5: Hedging and Hedge Accounting deals with the subject of hedging and hedge accounting.

Chapter 6: Financial Instruments — Presentation deals with the presentation of financial instruments required by MFRS 132 and Section 22 of MPERS.

Chapter 7: Share Capital, Reserves and Other Equity Items supplements Chapter 6 on the presentation and deals with the statutory and other legal requirements concerning share capital and equity instruments.

Chapter 8: Financial Instruments — Disclosures focuses on the disclosure requirements of MFRS 7 and MPERS.

About the Author

Tan Liong Tong is a respected and experienced author on financial reporting practices. He has served as a project manager in working groups assigned to developing the Standards of the Malaysian Accounting Standards Board (MASB). He currently serves as a project manager of the MASB Working Group (WG 63) on Consolidation and as a Technical Consultant to Mazars Malaysia. High in demand as a consultant to various institutions and organisations, he has published numerous research articles, books, monographs and practice manuals in the field of financial accounting and reporting.