Hi,

Here are your three topics on accounting and capital markets matters.
Guide to drafting MFRS 16 Leases disclosures

  • Key message: MFRS 16 requires significant new and enhanced disclosure by both lessees and lessors. Our MFRS 16 Disclosure Guide, now available for you to download, explains the MFRS 16 presentation and disclosure requirements and provides guidance on how to address these requirements in the first year of adoption of MFRS 16 in 2019.
Demystifying the debits and credits of cryptocurrency

  • Key message: Cryptocurrency, an increasingly popular digital currency used for online transactions, is different from traditional currencies because it is not issued or backed by any government or state nor does it have a physical form. Given such differences, the applicable accounting for cryptocurrency may be complex in practice.
  • Practical impact: A holder and an issuer of cryptocurrency will apply different accounting principles. In view that there is no specific MFRS that applies to cryptocurrency, the accounting treatment depends on the purpose of holding the cryptocurrency and the terms and conditions which may result in varying impacts on the income statement and balance sheet. Interestingly, in many circumstances, cryptocurrency is measured at cost rather than fair value.
  • What you should think about: If your company engages in online transactions where cryptocurrency is used as consideration, you should start thinking about accounting implications.
Proposed Amendments to the Main Market and ACE Market Listing Requirements

  • Key message: Bursa Malaysia issued a consultation paper on 30 August 2019 seeking public feedback on the proposed amendments to the Main Market and ACE Market Listing Requirements with the following key proposals:
1. Enhancing requirements relating to new issue of securities:
(a) New disclosures; including details and status of previous fund raising exercises
(b) Imposing a “50% limit” on convertible securities; and
(c) Announcement of Dividend Reinvestment Scheme share price closer to the book closing date.
2. Immediate announcement of material loan covenants linked to controlling shareholder.
3. Cooling-off period for independent directors

The proposed amendments are part of Bursa Malaysia’s continuous efforts to ensure a balanced regulatory framework that provides adequate levels of investor protection while ensuring that it does not result in burdensome compliance costs nor impede ease of doing business and growth.

  • What you should think about: Relevant stakeholders should evaluate the proposed amendments and provide feedback to Bursa Malaysia by 31 October 2019.
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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