FRSIC Consensus 2 – Applicable Accounting Standards For MSC Status Companies (1 February 2008)

The effective date of the application of this FRSIC CONSENSUS was 1 February 2008.

The release of FRSIC Consensus 2 – Applicable Accounting Standards For MSC Status Companies provides guidance, to address the situation where a MSC-status company is given certain exemption to comply with the exchange control requirements under the Exchange Control Act, 1953. However, the general permission is given subject to the condition, among others, that the Company shall submit its audited annual financial statements to Jabatan Pentadbiran Pertukaran Asing “JPPA”, BNM within 3 months at the end of every financial year. The issue is whether the requirement for MSC Status Company to submit its financial statements to BNM is considered as lodging its financial statements under the law administered by BNM and therefore it is required to prepare the financial statements in accordance with FRSs and not PERSs.

You can download FRISC Consensus 2 here: http://www.frsic.my/consensus_consensus.asp

FRSIC Consensus 1 – Determination Of Substantively Enacted Tax Rate For Year Of Assessment 2008 And Thereafter (1 August 2007)

The effective date of the application of this FRSIC CONSENSUS was 1 August 2007.

The release of FRSIC Consensus 1 – Determination Of Substantively Enacted Tax Rate For Year Of  Assessment 2008 And Thereafter provides guidance, to address use of tax rates when dealing with temporary differences to arrive at the amount of deferred tax assets or liabilities in Year Of Assessment 2008 in view of the government’s announcement in 2007 budget speech that corporate tax would be reduced from 27% for Year Of Assessment 2007 to 26% for Year Of Assessment 2008.

You can download FRISC Consensus 1 here: http://www.frsic.my/consensus_consensus.asp