The Malaysian Institute of Accountants (MIA) has issued a new FRSIC CONSENSUS on 23 March 2011.
The release of FRSIC Consensus 14 – Impairment of Investment in Equity Instrument Categorised as Available-for-Sale Financial Asset due to “Significant or Prolonged” Decline in Fair Value provides guidance, in the context of investment in equity instrument categorised as available-for-sale financial asset, to the meaning of the term “significant or prolonged” contained in Paragraph 61 of FRS 139 “Financial Instruments: Recognition and Measurement”. FRS 139 do not define nor illustrate in detail the meaning of the term “significant or prolonged”.
The Consensus elaborated on the need for reporting entities in developing internal guidance to aid consistent application of judgement required in determining whether there is any objective evidence that an investment in equity instrument categorised as available-for-sale financial asset and measured at fair value is impaired due to “significant or prolonged” decline in fair value.
You can download FRISC Consensus 14 here: http://www.mia.org.my/new/1_tech_detail.asp?tid=6&rid=5&id=914