# Malaysian Accounting Standards Board (MASB) > The Malaysian Accounting Standards Board (MASB) is the statutory body under the Financial Reporting Act 1997 that issues Malaysia's legally binding accounting standards — the IFRS-aligned MFRS framework for public-interest entities and MPERS for private entities. - Category: accounting - Language: en - Status: published - Updated: 2026-08-14 - Canonical: https://negaraku.md/en/accounting/malaysian-accounting-standards-board-masb --- 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. ## Sources - MASB — About the Malaysian Accounting Standards Board — https://www.masb.org.my/pages.php?id=10 (Malaysian Accounting Standards Board) - Financial Reporting Act 1997 (Act 558) — https://www.commonlii.org/my/legis/consol_act/fra1997194/ (Commonwealth Legal Information Institute (CommonLII)) - Use of IFRS Standards by jurisdiction — Malaysia — https://www.ifrs.org/use-around-the-world/use-of-ifrs-standards-by-jurisdiction/view-jurisdiction/malaysia/ (IFRS Foundation) - MASB — Financial Reporting Foundation (FRF) — https://www.masb.org.my/pages.php?id=9 (Malaysian Accounting Standards Board) - MASB issues amendments to the disclosure standard and a major multi-section update to MPERS — https://www.masb.org.my/press_list.php?id=489 (Malaysian Accounting Standards Board) - MASB issues new presentation and disclosure Standard to improve companies' reporting of financial performance — https://www.masb.org.my/press_list.php?id=455 (Malaysian Accounting Standards Board) --- Source of truth: https://github.com/negaraku-md/NegaraKu.md License: CC BY-SA 4.0