Amendment to Financial Reporting Standard 108 Accounting Policies, Changes in Accounting Estimates and Errors

Researched by Milan Choo

An entity shall apply the Amendment to FRS 108 for annual periods beginning on or after 1 January 2010. Earlier application is permitted.

Paragraphs 7, 9 and 11 are amended (new text is underlined and deleted text is struck through).

Accounting Policies

Selection and Application of Accounting Policies

7. When an FRS specifically applies to a transaction, other event or condition, the accounting policy or policies applied to that item shall be determined by applying the FRS. and considering any relevant Implementation Guidance issued by the MASB for the FRS.

9. FRSs are accompanied by guidance to assist entities in applying their requirements. All such guidance states whether it is an integral part of FRSs. Implementation Guidance that is an integral part of FRSs is mandatory. for Standards issued by the MASB does not form part of those Standards, and therefore Guidance that is not an integral part of FRSs does not contain requirements for financial statements.

11. In making the judgement described in paragraph 10, management shall refer to, and consider the applicability of, the following sources in descending order:

(a) the requirements and guidance in FRSs dealing with similar and related issues; and

(b) the definitions, recognition criteria and measurement concepts for assets, liabilities, income and expenses in the Proposed Framework.

(Source: http://www.masb.org.my/images/stories/New_FRS/ImprovementFRS108_15Sept09.pdf)

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