Accounting and Capital Markets Round-Up
3 topics. 5 minutes.
January 2020
Hi,
Happy New Year! Here are your three topics on accounting and capital markets matters.
For further enquiries, please contact us, the Capital Market & Accounting Advisory Services (CMAAS) team at: my_cmaas@pwc.com
IFRIC decision on how leasehold improvements affect lease term assessment under MFRS 16
The IFRS Interpretations Committee had in its last meeting of the decade concluded that the enforceable period of a lease under IFRS 16 reflects broader economics, not just legal rights and termination cash payments.
If an entity expects to use non-removable leasehold improvements beyond the date on which the lease contract can be terminated, the existence of those leasehold improvements indicates that the entity might incur more than an insignificant penalty if it terminates the lease. Consequently, an entity considers whether the contract is enforceable for at least the period of expected utility of the leasehold improvements.
Using a broader interpretation of penalty, some leases will have a longer enforceable period. If there are longer enforceable periods and the lessee is reasonably certain to continue using the asset, it will result in a longer lease term and therefore larger lease liabilities for the lessee. Read more
MFRS 16 Leases transition 1-page guide for lessees who are existing MFRS preparers
The new MFRS 16 “Leases”, effective for annual reporting periods beginning on or after 1 January 2019, provides lessees with an option of two transition methods: either (1) full retrospective; or (2) simplified retrospective. This guide explains the transition requirements and various optional expedients in the first year of adoption of MFRS 16. Download the 1-page guide
Amendments to the Bursa Listing Requirements in relation to Anti-Corruption Measures
On 18 December 2019, Bursa Malaysia published the amendments to the Main and ACE Markets Listing Requirements in relation to anti-corruption measures. These amendments are aimed at promoting better governance culture and providing listed companies with a defence against the legal liability under section 17A of the Malaysian Anti-Corruption Commission Act 2009. Listed companies are required to establish and implement adequate procedures to prevent the occurrence of corrupt practices. Read more
The Capital Markets & Accounting Advisory Services (CMAAS) team provides solutions on accounting, financial reporting and capital market matters. Talk to us
© 2020 PwC. All rights reserved. "PricewaterhouseCoopers" and/or "PwC" refers to the individual members of the PricewaterhouseCoopers organisation in Malaysia, each of which is a separate and independent legal entity. Please see www.pwc.com/structure for further details. Read about our commitment to your privacy here.