How to prepare for the switch to MPERS

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. The following statements are CORRECT with regard to what an entity should do, in its opening statement of financial position as of its date of transition to the MPERS (ie 1 January 2015), EXCEPT -

  2. What is the reason or rationale to why paragraph 35.9 of MPERS provide situations why exception to the retrospective application is made mandatory?

  3. One of the main reasons for the Malaysian Accounting Standards Board (MASB) to consider the adoption of Malaysian Private Entity Reporting Standards (MPERS) to replace the current Private Entity Reporting Standards (PERS) is?

  4. When transiting to MPERS, what is the significance of the date 1 January 2015 to the preparers of the financial statements in Malaysia so as to comply with MPERS?

  5. The general transitional requirements for the first time adoption of MPERS are retrospective in nature (with certain exemptions provided). However, Paragraph 35.9 lists five situations where exceptions to retrospective application are mandatory for all first-time adopters of the MPERS which include -

  6. The following are CORRECT about the treatment of inventories which prior to 2016, was presented in the financial statements in accordance with PERS and used the last-in, first-out (LIFO) cost formula for measurement, EXCEPT -

  7. The general principle underlying the recognition and measurement of assets and liabilities under the MPERS framework is -

  8. Where previously under PERS, an entity accounted for all preference shares issued as equity instruments, even though the entity must redeem its preference shares at a later date, what should the entity do to comply with MPERS?

  9. When is the MPERS effective for private entities in Malaysia?

  10. Section 35 of the MPERS is a critical section in the MPERS. Why is this section significant to the preparers of financial statements in compliance with MPERS?