The Malaysian Accounting Standards Board (MASB) is the statutory standard-setter for financial reporting in Malaysia, established under the Financial Reporting Act 1997 (Act 558). It issues Malaysia's approved accounting standards — the Malaysian Financial Reporting Standards (MFRS), which are word-for-word aligned with IFRS, and the Malaysian Private Entities Reporting Standard (MPERS) for private entities. Because financial statements lodged with the main regulators must comply with these standards, they carry the force of law.
- MASB was established under the Financial Reporting Act 1997 (Act 558) as the standard-setting body of the Financial Reporting Foundation (FRF).
- Under section 7 of the Act, MASB determines and issues accounting standards for financial statements required under laws administered by the Securities Commission, Bank Negara Malaysia and the Registrar of Companies (SSM).
- Accounting standards issued by MASB are given the force of law: statements lodged with those regulators must comply with them.
- MASB issued the MFRS Framework in November 2011 — word-for-word with IFRS Standards in effect at 1 January 2012, and mandatory for non-private entities from that date.
- Private entities apply MPERS, based on the IFRS for SMEs; a revised MPERS (2025) applies for periods beginning on or after 1 January 2027.
Who this applies to: Company directors, accountants, auditors, finance teams, and students who need to know who sets Malaysian accounting standards and where their legal authority comes from.
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When a Malaysian company signs off its accounts, the rules it must follow are not written by its auditor, its tax office or the stock exchange. They are written by the Malaysian Accounting Standards Board (MASB) — and, unusually, those rules carry the force of law.
MASB was established under the Financial Reporting Act 1997 (Act 558) as the standard-setting body of the Financial Reporting Foundation (FRF), together forming Malaysia’s financial reporting framework. The Act’s own words describe its purpose: “An Act to establish the Financial Reporting Foundation and the Malaysian Accounting Standards Board.”
What does MASB actually do?
Under section 7 of the Act, MASB’s core function is the determination and issuance of accounting standards for financial statements required to be prepared or lodged under any law administered by three regulators: the Securities Commission Malaysia (SC), Bank Negara Malaysia (BNM) and the Registrar of Companies (SSM).
That last point is what makes MASB different from a professional guideline body. The standards it issues are “approved accounting standards,” and they are given the force of law — financial statements lodged with BNM, the SC or the Registrar of Companies must comply with them. A standard travels from issued to mandatory through this statutory compliance duty, not through voluntary adoption.
MASB also works through a due, consultative process — publishing exposure drafts for public comment before finalising a standard — and collaborates with international standard-setters toward a single set of global standards.
Which framework applies to me?
MASB maintains two frameworks. Which one governs your accounts depends on whether you are a private entity.
| MFRS Framework | MPERS | |
|---|---|---|
| Who applies it | Entities other than private entities | Private entities |
| Typical filer | Statements lodged with the SC or BNM, and their subsidiaries | Companies filing with SSM that are not caught by MFRS |
| Based on | IFRS Standards — word-for-word | IFRS for SMEs Standard |
| Since | Mandatory from 1 January 2012 | In force for private entities |
The MFRS Framework was issued in November 2011 and is, in substance, word-for-word in agreement with all IFRS Standards in effect as of 1 January 2012. Entities other than private entities were required to apply it for annual periods beginning on or after that date (with “Transitioning Entities” given a deferred date of 1 January 2018). Because of that alignment, statements prepared under MFRS must include an explicit and unreserved statement of compliance with IFRS Standards — which is why a Malaysian balance sheet reads cleanly alongside one from London or Singapore.
The MPERS framework is word-for-word the IFRS for SMEs Standard, except for requirements on property development activities and some terminology changes. In October 2025, MASB issued a revised MPERS (2025) that mirrors the third edition of the IFRS for SMEs Accounting Standard (issued by the IASB in February 2025), effective for annual periods beginning on or after 1 January 2027, with early application permitted.
Who oversees MASB?
MASB sets standards; it does not answer to no one. The Financial Reporting Foundation (FRF) oversees the carrying out of MASB’s functions, reviews its performance and is responsible for all financing arrangements, including approving the budget. Critically, the FRF has no direct responsibility for standard-setting — that responsibility rests solely with the MASB. This split keeps funding and oversight separate from the technical, independent business of writing the standards.
What’s changing next?
The framework is not static. MASB continues to adopt new IFRS Standards as the IASB issues them. On 14 June 2024 it issued MFRS 18 Presentation and Disclosure in Financial Statements — word-for-word IFRS 18 — which replaces MFRS 101 and is effective for annual reporting periods beginning on or after 1 January 2027, with earlier application permitted. Private entities should note the same 2027 start date for the revised MPERS.
What’s next
If you are unsure whether MFRS or MPERS governs your accounts, start from your regulator: statements lodged with the SC or BNM point to MFRS, while a private company filing only with SSM will generally sit under MPERS. For the exact section numbers, board composition and current leadership, confirm against the official Act 558 text and the MASB website before relying on any specific figure.
Which framework applies to my company — MFRS or MPERS?
It depends on whether you are a private entity. Entities other than private entities — broadly, companies whose statements are lodged with the Securities Commission or Bank Negara, and their subsidiaries — apply the MFRS Framework. Private entities apply MPERS. Both are issued by MASB.
Are Malaysian standards the same as IFRS?
The MFRS Framework is, in substance, word-for-word in agreement with IFRS Standards, and MFRS statements must include an explicit and unreserved statement of compliance with IFRS. Private entities instead use MPERS, which is word-for-word the IFRS for SMEs Standard except for property development requirements and some terminology.
What is the difference between MASB and the Financial Reporting Foundation?
MASB writes and issues the standards. The Financial Reporting Foundation (FRF) oversees MASB, reviews its performance and is responsible for its financing, including approving the budget — but it has no direct responsibility for standard-setting, which rests solely with MASB.
The following are deliberately unstated or described only qualitatively until confirmed by a subject-matter expert:
- Exact current MASB board size and composition (secondary sources cite eight members appointed by the Minister of Finance plus the Accountant-General and advisers from BNM/SC/SSM) — re-confirm the live figure on masb.org.my before stating a headcount.
- Current MASB Chairman and Accountant-General — verify named individuals on masb.org.my before publishing, as leadership changes.
- Precise FRA 1997 section citations — s.7 (functions/issue power) and the compliance obligation for statements lodged with SC/BNM/SSM (drafted as s.26D) — confirm against the official Act 558 text before citing section numbers as fact.
- The exact year MASB became operational versus the 1997 enactment date of the Act.
- Whether any legacy frameworks (PERS/FRS) retain residual application, and the final status of 'Transitioning Entities' whose MFRS date was deferred to 1 January 2018.
- MFRS 18 / MFRS 19 exact effective date (1 January 2027) and scope — verify on the MASB press release / standard text before stating.
Sources
- MASB — About the Malaysian Accounting Standards Board — Malaysian Accounting Standards Board
- Financial Reporting Act 1997 (Act 558) — Commonwealth Legal Information Institute (CommonLII)
- Use of IFRS Standards by jurisdiction — Malaysia — IFRS Foundation
- MASB — Financial Reporting Foundation (FRF) — Malaysian Accounting Standards Board
- MASB issues amendments to the disclosure standard and a major multi-section update to MPERS — Malaysian Accounting Standards Board
- MASB issues new presentation and disclosure Standard to improve companies' reporting of financial performance — Malaysian Accounting Standards Board
Change history
| Version | Date | Change | By |
|---|---|---|---|
| 01.00 | 14 Aug 2026 | Approved and published. | — |