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This article applies to:

  • Product: ONESOURCE Statutory Reporting
  • Subject: Templates

Version 17 - April 2025 (CUD release)

Content update information

This update confirms that the Malaysia template includes Illustrative Model Content with legislative coverage for year end reporting until December 31, 2025.
  • Financial period type: 12-Months (annual)
  • Target industry type: Manufacturing, Services, and Generic (excluding Financial Services)

Legislative changes for upcoming December 2025 financial year

  • Lack of Exchangeability
    : Amendments to MFRS 121, "The Effects of Changes in Foreign Exchange Rates," effective for annual reporting periods beginning on or after January 1, 2025.
  • Classification and Measurement of Financial Instruments
    : Amendments to MFRS 9, "Financial Instruments," and MFRS 7, "Financial Instruments: Disclosures," effective for annual reporting periods beginning on or after January 1, 2026.
  • Annual Improvements to MFRS Accounting Standards – Volume 11
    : Effective for annual reporting periods beginning on or after January 1, 2026.
  • Contracts Referencing Nature-dependent Electricity
    : Amendments to MFRS 9, "Financial Instruments," and MFRS 7, "Financial Instruments: Disclosures," effective for annual reporting periods beginning on or after January 1, 2026.
  • MFRS 18 Presentation and Disclosure in Financial Statements
    : Effective for annual reporting periods beginning on or after January 1, 2027.
  • MFRS 19 Subsidiaries without Public Accountability: Disclosures
    : Effective for annual reporting periods beginning on or after January 1, 2027.
  • Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
    : Amendments to MFRS 10, "Consolidated Financial Statements," and MFRS 128, "Investment in Associate and Joint Ventures," with the effective date deferred to a date to be announced by the Malaysian Accounting Standards Board (MASB).
Accounting law changes for December 2025 financial year
We have checked to the websites of “Company Commission of Malaysia” and “Malaysian Accounting Standards Board (“MASB”)” as of 15 April 2025. We are not aware of any local accounting law changes for the upcoming December 2025 financial year, other than the items mentioned above.

Early adoption for accounting standards

  • Lack of Exchangeability – Amendments to MFRS 121
    :
    • Effective Date: For annual reporting periods beginning on January 1, 2025.
    • Early Adoption: Permitted, but must be disclosed.
    • Application: When applying the amendments, entities cannot restate comparative information.
  • Classification and Measurement of Financial Instruments – Amendments to MFRS 9 and MFRS 7
    :
    • Effective Date: For annual reporting periods beginning on January 1, 2026.
    • Early Adoption: Entities can early adopt the amendments related to the classification of financial assets and related disclosures, while applying other amendments later.
    • Application: The new requirements will be applied retrospectively with an adjustment to opening retained earnings. Prior periods are not required to be restated, but if restated, it must be done without using hindsight.
    • Disclosure: Entities must disclose information about financial assets that change their measurement category due to the amendments.
  • Annual Improvements to MFRS Accounting Standards – Volume 11
    :
    • Effective Date: For annual reporting periods beginning on January 1, 2026.
    • Annual Improvements to MFRS Accounting Standards – Volume 11," effective for annual reporting periods beginning on or after January 1, 2026:
      1. MFRS 1 First-time Adoption of International Financial Reporting Standards
        :
        • Focus: Hedge Accounting by a First-time Adopter.
        • Amendments: Paragraphs B5 and B6 of MFRS 1 have been updated to include cross-references to the qualifying criteria for hedge accounting in paragraph 6.4.1(a), (b), and (c) of MFRS 9.
        • Purpose: These changes aim to resolve potential confusion due to inconsistencies between MFRS 1 wording and MFRS 9 hedge accounting requirements.
        • Early Application: Permitted
      2. MFRS 7 Financial Instruments: Disclosures
        :
        • Focus: Gain or Loss on Derecognition.
        • Amendments: Updates to the language on unobservable inputs in paragraph B38 of MFRS 7, with a cross-reference to paragraphs 72 and 73 of MFRS 13, Fair Value Measurement.
        • Early Application: Permitted.
      3. Guidance on Implementing MFRS 7 Financial Instruments: Disclosures
        :
        • Introduction
          : Paragraph IG1 has been amended to clarify that the guidance does not necessarily illustrate all requirements in the referenced paragraphs of MFRS 7 and does not create additional requirements.
        • Disclosure of Deferred Difference between Fair Value and Transaction Price
          : Paragraph IG14 has been revised to align wording with paragraph 28 of MFRS 7 and concepts and terminology in MFRS 9 and MFRS 13.
        • Credit Risk Disclosures
          : Paragraph IG20B has been simplified to better explain which aspects of the MFRS requirements are not illustrated in the example.
      4. MFRS 9 Financial Instruments
        : Focus: Lessee Derecognition of Lease Liabilities and Transaction Price.
        • Amendment: Paragraph 2.1 has been updated to clarify that when a lessee determines a lease liability is extinguished under MFRS 9, they must apply paragraph 3.3.3 and recognize any gain or loss in profit or loss. The amendment does not clarify how to distinguish between a lease modification under MFRS 16 and an extinguishment under MFRS 9.
        • Early Application: Permitted.
        • Transaction Price
          :
          • Amendment: Paragraph 5.1.3 now replaces the reference to ‘transaction price as defined by MFRS 15’ with ‘the amount determined by applying MFRS 15’ to avoid confusion. The term ‘transaction price’ has also been removed from Appendix A of MFRS 9.
          • Early Application: Permitted.
      5. MFRS 10 Consolidated Financial Statements
        :
        • Determination of a ‘De Facto Agent’
          :
          • Amendment: Paragraph B74 clarifies that the relationship described is just one example of possible relationships that might exist between an investor and parties acting as de facto agents. This aims to remove inconsistency with paragraph B73, which requires judgment in determining de facto agents.
          • Early Application: Permitted.
      6. MFRS 107 Statement of Cash Flows
        :
        • Cost Method
          :
          • Amendment: Paragraph 37 replaces ‘cost method’ with ‘at cost’ due to the prior removal of the definition of ‘cost method’.
          • Early Application: Permitted.
      7. Contracts Referencing Nature-dependent Electricity
        :
        • Amendments to MFRS 9 and MFRS 7
          :
          • Effective Date: For annual reporting periods beginning on or after January 1, 2026.
          • Early Adoption: Permitted and must be disclosed.
          • Key Changes: Clarifies the application of the ‘own-use’ requirements and permits hedge accounting if these contracts are used as hedging instruments. Introduces new disclosure requirements to help investors understand the impact of these contracts on a company's financial performance and cash flows.
          • Application: The clarifications on ‘own-use’ must be applied retrospectively. The guidance permitting hedge accounting is to be applied prospectively to new hedging relationships designated on or after the initial application date.
      8. MFRS 18 Presentation and Disclosure in Financial Statements
        :
        • Effective Date: For annual reporting periods beginning on or after January 1, 2027.
        • Application: Will apply retrospectively.
        • Early Adoption: Permitted and must be disclosed.
      9. MFRS 19 Subsidiaries without Public Accountability: Disclosures
        :
        • Effective Date: For annual reporting periods beginning on or after January 1, 2027.
        • Early Adoption: Permitted. If an entity opts for early adoption, it must disclose this fact.
        • Key Requirement: During the first period (annual and interim) of application, align disclosures in the comparative period with those in the current period under MFRS 19, unless otherwise permitted or required by MFRS 19 or another MFRS standard.
      10. Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
        :
        • Amendments to MFRS 10 and MFRS 128
          :
          • Effective Date: Deferred to a date to be announced by the Malaysian Accounting Standards Board (MASB).
          • Background: In December 2015, MASB decided to defer the effective date of these amendments until it finalizes any changes resulting from its research project on the equity method.
          • Early Application: Permitted and must be disclosed.
          • Application: The amendments must be applied prospectively.

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