ROADSHOW Implementation Guidance on FRS Module 1

Complete Reliable Timely Efficient market Proper financial reporting FRSIC Roadshow Module 1 24 March 2009 1 2 Foster investors’ confidence 3

FRSIC Roadshow Module 1 24 March 2009 MIA with support from the Capital Market Development Fund (CMDF) formed FRSIC in January 2007

FRSIC Roadshow Module 1 24 March 2009 FRSIC provides professional counsel on matters concerning Financial Reporting Standards by way of issuing implementation guidance

FRSIC Roadshow Module 1 24 March 2009 30 issues since 2007 . . . 11 consensus reached 4 discontinued 7 rejected 8 on-going projects 8 consensus will be discussed today

FRSIC Roadshow Module 1 24 March 2009 Today’s consensus Determination of substantively enacted tax rate for year of assessment 2008 and thereafter. Applicable accounting standards for MSC Status Company. Is fixed deposit held on lien for bank guarantee facilities a cash and cash equivalent? Accounting treatment for impairment of goodwill in situation where court approval has been obtained to write it off against reserve. 1 2

Determination of substantively enacted tax rate for year of assessment 2008 and thereafter.

Applicable accounting standards for MSC Status Company.

Is fixed deposit held on lien for bank guarantee facilities a cash and cash equivalent?

Accounting treatment for impairment of goodwill in situation where court approval has been obtained to write it off against reserve.

FRSIC Roadshow Module 1 24 March 2009 Today’s consensus Split of the minimum lease payments between the land and the building elements. Accounting for premium paid for transfer of listing status in a reverse takeover scenario. Accounting treatment for granting of ESOS by parent company to subsidiary’s employees and subsequent recharge by the parent. Revenue recognition for shipping freight services companies. 1 2

Split of the minimum lease payments between the land and the building elements.

Accounting for premium paid for transfer of listing status in a reverse takeover scenario.

Accounting treatment for granting of ESOS by parent company to subsidiary’s employees and subsequent recharge by the parent.

Revenue recognition for shipping freight services companies.

FRSIC Roadshow Module 1 24 March 2009 Convergence with IFRS : Malaysia Full compliance with IFRS by 1 January 2012. Enhance comparability of financial statements between Malaysian companies and companies worldwide. Globalisation wave - more than 100 countries are converging or have converged to IFRS.

FRSIC Roadshow Module 1 24 March 2009 Committee Members Chairman En. Nik Mohd Hasyudeen Yusoff Members Dato’ Nordin Baharuddin En. Mohammad Faiz Azmi Mr. Stephen Oong Ms. Jennifer Lopez (ACCA) Mr. Alex Ooi (CPA Australia) Mr. Ng Kim Tuck (MICPA) MIA Council Members

FRSIC Roadshow Module 1 24 March 2009 Observers Bank Negara Malaysia Bursa Malaysia Berhad Malaysian Accounting Standards Board Securities Commission Suruhanjaya Syarikat Malaysia

Bank Negara Malaysia

Bursa Malaysia Berhad

Malaysian Accounting Standards Board

Securities Commission

Suruhanjaya Syarikat Malaysia

FRSIC Roadshow Module 1 24 March 2009 FRSIC Process Submit issue FRSIC acceptance Research Working Group discussion Issue draft consensus FRSIC deliberation & recommendation MIA Council approval (Practitioners, regulators & industry players)

FRSIC Roadshow Module 1 24 March 2009 frsic.mia.org.my [email_address]