QUESTION 5 (15 MARKS)

In February 2014, the MASB issued Malaysian Private Entities Reporting Standard

(MPERS) and this sets a new milestone for financial reporting of private entities in Malaysia.

MPERS is based substantially on the International Financial Reporting Standard for Small

and Medium-sized Entities (IFRS for SMEs) issued by the IASB in July 2009. The new

reporting framework, known as the MPERS Framework, is effective for financial statements

beginning on or after 1 January 2016, with early application permitted.

Required:

(i)

Discuss the statement above by giving justifications of why private entities should have

different financial reporting framework from the non-private entities.

(7 Marks)

(ii) Should private entities include co-operatives? Discuss the financial reporting

requirements of co-operatives with reference to the Malaysian applicable financial

reporting rules and guidelines.

(8 Marks)

(Total: 15 Marks)