The Malaysian Accounting Standards Board (MASB) issued a brand new Malaysian Financial Reporting Standards (MFRS) on the recognition and measurements of financial instruments - MFRS 9.
MFRS 9 replaces the existing MFRS 139 "Financial Instruments: Recognition and Measurement" from 1 January 2018 and introduces changes in the following four areas:
The new standard nevertheless retains certain principles in MFRS 139. For example, the requirements on derecognition of financial assets and liabilities as well as classification and measurement of financial liabilities remain unchanged.
For more info, read PwC Alert Issue 123: Embracing the new financial instruments standards.
Implementing MFRS 9 won't be easy. The smooth and successful implementation of MFRS 9 will depend on the type and complexity of the financial instruments held and whether changes to current systems and processes were made.
Below are some potential implementation challenges that you could face.