Business solutions that bring you forward
The financial accounting, reporting and economic landscape is ever-evolving. At Deloitte, we help you navigate the challenges of a changing environment. We offer valuable insights with practical and industry-specific business solutions.
As part of Deloitte Southeast Asia’s network of professionals, we leverage pooled resources to stay ahead of the regulatory changes and adapt to them with agility. Our range of service solutions include finance care, accounting advisory services and sustainability assurance. We offer a team of multi-disciplinary skilled professionals to provide you with end-to-end solutions.
We collaborate with our wide network of subject matter experts to deliver you a range of business support services from dealing with regulatory compliance, improving your internal controls and systems, financial and reporting exercises to suggesting business structures. Acting as an independent sounding board, we work closely with you to give fresh perspectives and deliver flexible and customised advisory services that are catered to your specific business needs.
Download the Business Advisory Services brochure here
Get ready for MFRS 16
A new accounting standard for leases
The Malaysian Accounting Standards Board (the Board) issued MFRS 16 Leases in April 2016, which set an effective date of 1 January 2019. The new standard will likely present several key implementation challenges for entities, particularly lessees, in addition to technical accounting challenges. As time has passed near to the effective date, these could be overwhelming if not planned early.
This new standard covers various key issues including the options and benefits on transition which highlight the potential cost savings available depending on the options chosen. It looks at the available practical expedients relating to the measurement of lease liabilities and right-of-use assets. These standards also obtain the new information needed where judgements are involved in applying MFRS 16.
In addition, MFRS 16 explores the two ways in determining discount rates i.e. the implicit rate of the lease, or if it is not practicable, the incremental borrowing rate of the lease. Another key issue the standard focuses on is studying the factors a lender would typically consider to arrive at an appropriate incremental borrowing rate for the lease.
As 1 January 2019, the effective date, approaches, the most important action an entity can take is to start the efforts related to this accounting change now. It can be a challenge to anticipate the data gaps and overcome the data extraction hurdle, but with adequate support from professionals with a good understanding of its requirements and the interpretation issues, it can be achieved.
Download the MFRS16 brochure here
Accounting for revenue under MFRS 15
With an effective date of 1 January 2018, MFRS 15 Revenue from contracts with customers outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. It supersedes current revenue recognition guidance, including MFRS 118 Revenue, MFRS 111 Construction Contracts and other related interpretations.
Under MFRS 15, an entity recognises revenue in accordance with that core principle by applying the five steps approach. The first step is to identify contracts with customers. The next step is to identify the performance obligations (PO). Following the second step, we would have to determine the transaction price (TP). TP to PO is then allocated based on fair value. The final step is to recognise allocated revenue when the PO is satisfied.
While MFRS 15 is a very comprehensive standard, there are numerous areas that are subjected to judgment and interpretation. You will need professionals with a good understanding of its requirements and the interpretation issues, in order to help you identify the other significant implications on your business that go beyond just compliance.
Download the MFRS15 brochure here
Turning an enterprise into a publicly traded company through an Initial Public Offering (IPO) is a significant milestone for your company. It calls for the combined efforts of advisers from the accounting, legal, financial advisory and underwriting professions. We have the right team with the right expertise to assist you to navigate the complex route and become a public listed company.
Download the IPO brochure here
A guide to IFRS 16
In addition to providing a detailed summary and explanations of the requirements of IFRS 16 Leases covering all of the requirements of the standard, this guide also includes an executive summary and a section focusing specifically on the practicalities of transition. It also covers ‘Thinking it through’ practical tips, interspersed throughout the detailed guide, presentation or disclosure checklists and a high level of IFRS/US GAAP comparison.
Download the IFRS16 guide here