SE Lai CK Alerts 3-2018 – MFRS 15: Revenue from Contracts with Customers

Important Circular

Dear Valued Clients and Associates

Malaysian Financial Reporting Standards (MFRS): Revenue from Contracts with Customers

  1. MFRS 15 is effective for companies having financial period beginning on or after 1 January 2018 with early application is permitted
  2. MFRS 15 will supersedes several accounting standards which is:-
MFRS 118 Revenue
MFRS 111 Construction contracts
IC Interpretation 13 Customer Loyalty Programmes
IC Interpretation 15 Agreements for the Construction of Real Estate
IC Interpretation 18 Transfers of  Assets from Customers
IC Interpretation 131 Revenue – Barter Transactions involving Advertising Services

In preparation for the adoption of MFRS 15, we have prepared Salient Points and Impact Review Checklist which are attached herewith for your kind attention.

What do you need to do to prepare for the implementation of MFRS 15?

Familiarity and understanding of MFRS 15 by key management and finance managers is strongly encouraged.

We are pleased to advise that we have prepared the following to facilitate your consideration of MFRS 15 and its potential impact on revenue recognition in your respective companies:

  • MFRS 15 Salient Points
  • MFRS Impact Review Checklist

Our MFRS 15 technical task team will be contacting you in the coming weeks to schedule a more detailed briefing and discussion with you. Meanwhile, please do not hesitate to contact the following should you have any MFRS 15.

MFRS 15 Task Team Ext
Elsie Tan (Ms) 113
Elvis Quan 114

25 January 2018

1_MFRS 15 Salient Points

2_MFRS 15 Impact Review Checklist