PERS vs IFRS for SMEs

In February 2007, the IASB (International Accounting Standards Board) published an exposure draft of an IFRS for small and medium-sized entities aiming to provide a simplified, self-contained set of accounting principles for smaller and non-listed companies that are based on the full IFRS. The IFRS for SMEs is expected to be issued by the IASB in the second half of 2008.

How would all this development by the IASB impact the private entities in Malaysia? Can we equate our private entities to the IASB’s definition of SMEs?

Currently, the MASB has implemented the PERS (Private Entities Reporting Standards), which are essentially the existing MASB accounting standards that have been effective since 1999. To date, MASB has done a road show to bring awareness of these changes but has not adopted a stand on the outcome. Generally, it would be a wait-and-see approach depending on the successful implementation by IASB according to its deadline.

The main objectives of this seminar are to highlight the differences between these financial reporting frameworks, and to equip the participants with the necessary information and practical implementation procedures in preparation for the day when and if MASB decides to adopt the IFRS for SMEs in place of the PERS.

Course Outline

1. Overview of the exposure draft on IFRS for SMEs highlighting, amongst other areas :

   a. Scope
   b. Concepts and Pervasive Principles
   c. Financial Statement Presentation
   d. Cash Flow Statement
   e. Investment property
   f. Property, plant and equipment
   g. Borrowing costs
   h. Accounting for government grants and Disclosure of government assistance
   i. Financial instruments : recognition and measurement
   j. Goodwill impairment
   k. Research and development costs
   l. Associates and joint ventures
   m. Agriculture
   n. Share based payments
   o. Finance leases
   p. Defined benefit plans

2. Comparison of accounting principles between the IFRS for SMEs, PERS and MASB ED 52

3. Reviewing the illustrative financial statements and disclosure checklist provided by the IASB

Speaker’s Profile

Ms Lim Geok Heng is a Fellow member of the Association of Chartered Certified Accountants and a Chartered Accountant of the Malaysian Institute of Accountants.  She is also a Certified Professional Trainer (CPT, IPMA, UK).

She has over 20 years experience in areas comprising auditing, financial accounting, treasury functions, education and training.  Her most recent past appointments include the positions of Chief Technical and Training Officer of Horwath (a medium-sized accounting firm), Training Manager of Ernst & Young, Lecturer in Sunway University College and Senior Lecturer in Tunku Abdul Rahman College.

Currently, Ms Lim is a freelance technical and training consultant. She speaks on MASB Reporting Standards and accounting and audit issues regularly and extensively throughout Malaysia for MIA, ACCA, CIMA, MAICSA, MICPA and CPA Australia.  In addition, she also conducts in-house technical training on accounting topics for commercial companies and training institutions in Malaysia, Singapore and Brunei.

Ms Lim was the Chairman of the ACCA-FRS (Financial Reporting Standards) Committee for 2006 and 2007.  She is also a Panel Member in the NACRA (National Annual Corporate Report Award) adjudication board.Ms Lim also co-authored the loose-leaf manual titled “Malaysian Private Entity Reporting Standards” published by CCH (Commerce Clearing House) Asia Pte Ltd, a member of the Wolters Kluwer group.