FAQs on Malaysian Private Entities Reporting Standards (MPERS). Description: FAQs on MFRS 15 Revenue from Contracts with Customers. Description: 

1. Step 1: Identify the contract(s) with a customer; 2. Step 2: Identify the performance obligations in the contract; 3. Step 3: Determine the transaction price; 4. Step 4: Allocate the transaction price to the performance obligations in the contract; and 5. Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation. IFRS 15 Revenue from Contracts with Customers applies to all contracts with customers except for: leases within the scope of IAS 17 Leases; financial instruments and other contractual rights or obligations within the scope of IFRS 9 Financial Instruments, IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IAS 27 Separate Financial Statements and IAS 28 Investments in Associates and Joint Ventures; insurance contracts within the scope of IFRS 4 Insurance Contracts; and non • MPERS requires all borrowing costs to be recognised as an expense in profit or loss while MFRS requires borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset to be capitalised as part of the cost of asset. MPERS. An entity shall also take note that ‘undue cost or effort’ exemption is a hierarchy test and does not tantamount to granting an accounting policy choice. For example, paragraph 16.7 of MPERS requires investment property to be measured at fair value at each The Malaysian Private Entities Reporting Standard (MPERS) is set out in Sections 1-35 and the Glossary. Terms defined in the Glossary are in bold type the first time they appear in each section. The MPERS is accompanied by a preface.

16 Nov 2018 PERS and mPERS are not for every dealer, but technological For security dealers seeking new revenue streams, it also translates into 40 million rate of attrition and shorter contract terms, if there's even a contract at all.

Malaysian Financial Reporting Standard (MFRS) 15: Revenue from Contracts with Customers was introduced by the Malaysian Accounting Standards Board to   Step 4: Allocate the transaction price to the performance obligations in the contract; and. 5. Step 5: Recognise revenue when (or as) the entity satisfies a  FAQs on Malaysian Private Entities Reporting Standards (MPERS). Description: FAQs on MFRS 15 Revenue from Contracts with Customers. Description:  Malaysian Private Entities Reporting Standards (MPERS). 7 CPE Hours Revenue recognition criteria and measurement method. • Construction contracts. Revenue recognition has always been a controversial issue in accounting especially on long-term contracts or services (Silvia, 2014). For many entities 

• MPERS requires all borrowing costs to be recognised as an expense in profit or loss while MFRS requires borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset to be capitalised as part of the cost of asset.

• MPERS requires all borrowing costs to be recognised as an expense in profit or loss while MFRS requires borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset to be capitalised as part of the cost of asset. MPERS. An entity shall also take note that ‘undue cost or effort’ exemption is a hierarchy test and does not tantamount to granting an accounting policy choice. For example, paragraph 16.7 of MPERS requires investment property to be measured at fair value at each The Malaysian Private Entities Reporting Standard (MPERS) is set out in Sections 1-35 and the Glossary. Terms defined in the Glossary are in bold type the first time they appear in each section. The MPERS is accompanied by a preface. The day-to-day management of MPERS is delegated to the executive director who is hired by the Board. The executive director acts as an advisor to the Board on all matters pertaining to the system and, with the approval of the Board, contracts for professional services and employs the remining staff needed to operate the system. contract cannot be estimated reliably Variation Claim PERS MASB 7 Revenue is recognised only to the extent of contract costs incurred that is probable will be recoverable. Contract costs are recognised as an expense in the period in which they are incurred. Included in contract revenue when: •it is probable that customer will approve the variation; and (“MPERS”). MPERS is effective for financial statements beginning on or after 1 January 2016. Although MPERS is a replacement for PERS, a private entity may not necessarily adopt MPERS. In fact, private entities have the option to apply in its entirety either the MPERS or the Malaysian Financial Reporting Standards (“MFRS”). With

Malaysian Private Entities Reporting Standards (MPERS). 7 CPE Hours Revenue recognition criteria and measurement method. • Construction contracts.

(“MPERS”). MPERS is effective for financial statements beginning on or after 1 January 2016. Although MPERS is a replacement for PERS, a private entity may not necessarily adopt MPERS. In fact, private entities have the option to apply in its entirety either the MPERS or the Malaysian Financial Reporting Standards (“MFRS”). With March 2018. The Committee received a request about revenue recognition in a contract for the sale of a unit in a residential multi-unit complex. Specifically, the request asked about the application of paragraph 35 of IFRS 15, which specifies when an entity recognises revenue over time. • Revenue recognition criteria and measurement method • Construction contracts • Event after reporting period Comparison and preparation of gap analysis to transit to MPERS • Understanding gap analysis • Conducting a gap analysis • Transition to MPERS Session Kuala Lumpur Event Code: AA/MPERS/KL01/06NOV19 Wednesday, 6 November 2019 MPERS. An entity shall also take note that ‘undue cost or effort’ exemption is a hierarchy test and does not tantamount to granting an accounting policy choice. For example, paragraph 16.7 of MPERS requires investment property to be measured at fair value at each MFRS 111 Construction Contracts has been superceded by the new MFRS 15 Revenue from Contracts with Customers will have an impact on the property development and construction sector. Gain an understanding on how MFRS 15, effective from annual periods beginning on or after 1 January 2018, will affect you. LEARNING OUTCOMES

FAQs on Malaysian Private Entities Reporting Standards (MPERS). Description: FAQs on MFRS 15 Revenue from Contracts with Customers. Description: 

1. Step 1: Identify the contract(s) with a customer; 2. Step 2: Identify the performance obligations in the contract; 3. Step 3: Determine the transaction price; 4. Step 4: Allocate the transaction price to the performance obligations in the contract; and 5. Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation.

Accounting for revenue. Section 23 of MPERS prescribes the treatment for revenue. The requirements are very similar to the treatment of revenue under the PERS framework, and with MFRS as well. The accounting for sales of goods, rendering of services, and interest, royalties and dividend will remain largely unchanged from previous practices under PERS. Revenue recognition in accordance with the underlying principle of MFRS 15 encompasses the following considerations: Identify the contract(s) with a customer A contract is an agreement between two or more parties that creates enforceable rights and obligations. The requirements of MFRS 15 apply to each contract that has been agreed with a customer and meets specified criteria – contract approved, rights of each party identified, payment terms identified, contract has commercial substance Malaysian Financial Reporting Standard (MFRS) 15: Revenue from Contracts with Customers was introduced by the Malaysian Accounting Standards Board to provide one comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries, and across capital markets. Included in contract revenue when: •it is probable that customer will approve the variation; and •the amount can be measured reliably. Included in contract revenue when: •negotiations have reached an advanced stage that it is probable that customer will accept the claim; and •the amount can be measured reliably. MPERS No explicit