Hi,

Here are your three topics on accounting and capital markets matters.
MFRS 16 – Beyond the implementation (report based on a global PwC survey of 400 public companies)

  • Key message: The PwC 2019 Global Survey sought to understand how IFRS 16 (MFRS 16 in Malaysia) implementation has progressed. The results indicated that many organisations see significant optimisation opportunity in lease processes and have yet to reap benefits beyond compliance from the IFRS 16 implementation process. We see key opportunities for companies to optimise processes and use data analytics to extract business value from new levels of centralised lease data transparency. Read this publication to find out more.
How does MFRS 17 Insurance Contracts impact non-insurers?

  • Key message: MFRS 17 Insurance Contracts does not only affect insurance companies. It is an accounting standard that applies to all “insurance contracts”. Contracts issued by non-insurers that fall within the scope of MFRS 17 will have to comply with the requirements of this new and complex accounting standard.
  • Practical impact: Many different types of insurance contracts are in fact commonly issued by non-insurance companies. In the banking sector, offering a customer the ability to claim over a failed credit card purchase may fall within the scope of MFRS 17. For non-banks, contracts offering performance guarantees (e.g. on constructing a building on time) may constitute an insurance contract.
  • What you should think about: In the lead up to the expected effective date of 1 January 2021, consider whether MFRS 17 would apply to any contracts issued by your company. As the measurement model under MFRS 17 is very complex, perform the scope assessment sooner rather than later for sufficient time to address any MFRS 17 related issues if they arise.
Guidance on combined financial statements

  • Key message: Combined financial statements are prepared by combining the financial statements of separate entities, segments or components that are under common control, but that are not necessarily part of a legal sub-group. Combined financial statements are typically found in capital market transactions such as initial public offerings, business combinations, acquisitions or disposals and spin-offs. The Malaysian Institute of Accountants (“MIA”)’s Capital Markets Advisory Committee (“CMAC”) has issued a Guidance Note to aid in the preparation of combined financial statements in November 2018.
Hope you found these a good read. If you’d like to continue the conversation, feel free to get in touch with us.

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