The Malaysian Accounting Standards Board (MASB) has issued minor changes to the Malaysian Financial Reporting Standard (MFRS) 17 for insurance contracts, which will take effect for annual reporting periods starting on or after January 1, 2023.
MASB says the amendment is to improve the usefulness of comparative information for investors on the first application of MFRS 17.
“In view of the different transition requirements, this can cause temporary accounting mismatches between financial assets and insurance contract liabilities in the comparative information when insurers apply MFRS 17 and MFRS 9 for the first time,” it says.
The amendment is a word-for-word initial application of the International Accounting Standards Board’s International Financial Reporting Standard (IFRS) 17 — Comparative Information (Amendment to IFRS 17 Insurance Contracts), according to the MASB.
“The amendment relates to the transition requirements of MFRS 17 only and does not affect any other requirements of the standard,” it said in a statement on Thursday, December 30.