KUALA LUMPUR (Nov 23): It has been 11 months since the new standard on Leases, MFRS 16, replaced the old standard on leasing, MFRS 117, which took effect Jan 1 this year.
The standard, which impacts any organization which has lease agreements, has been creating a lot of conversation of late due its more pronounced effect seen in the latest quarterly financials of companies such as AirAsia X Bhd, Berjaya Food Bhd and Media Prima Bhd.
These companies either recorded a decline in profitability or wider net losses, partly due to the adoption of MFRS 16.
In our cover story this week, we talk to industry experts from two major audit firms, PwC Malaysia’s Assurance Partner Siew Kar Wai and Baker Tilly Malaysia Group Managing Partner Andrew Heng, on what the application of this standard would mean for companies and how the adoption of MFRS 16 is changing the way companies measure the performance of their businesses.
The story also looks at how companies can benefit from the adoption of MFRS 16. On the other side of the coin, we also look at how MFRS 16 benefits the users of financial statements, on what they have been missing out with MFRS 117.
In our accompanying story, we speak to EY Asean and Malaysia Tax Leader Amarjeet Singh on what are the key tax implications that companies would need to be aware of with MFRS 16.