MFRS 18 Presentation and Disclosure in Financial Statements is a financial reporting standard issued by the Malaysian Accounting Standards Board (MASB). The MASB's list of MFRS standards shows that MFRS 18 was issued on 14 June 2024 and is effective for annual periods beginning on or after 1 January 2027.
Which framework applies
First confirm the company’s reporting framework and whether it meets the MASB’s definition of a private entity. Being a Sdn Bhd does not by itself establish eligibility for the Malaysian Private Entities Reporting Standard (MPERS); regulatory reporting obligations and relationships with other entities can affect that assessment. An eligible private entity applies either MPERS in its entirety or MFRS in their entirety. MFRS 18 applies within the MFRS framework; it is not a separate requirement imposed on companies reporting under MPERS.
MPERS (2025)
Private entities applying MPERS also face a change. According to the MASB, it issued a revised MPERS, known as MPERS (2025), in October 2025, aligned with the third edition of the IFRS for SMEs Accounting Standard. An entity applies MPERS (2025) for annual periods beginning on or after 1 January 2027, with earlier application permitted, and MPERS (2016) is withdrawn for annual reporting periods beginning on or after that date.
What to prepare now
For MFRS reporters, MFRS 18 replaces MFRS 101. Review the classification of income and expenses, required profit-or-loss subtotals, disclosures for qualifying management-defined performance measures, and the grouping of information. Retrospective application means comparative information also needs attention. For a calendar-year company first applying the standard in 2027, plan how to produce the required 2026 comparative information before the 2026 records are closed.
MPERS (2025) is a wider revision. Assess the sections relevant to the business, including consolidation, financial instruments, fair value measurement, business combinations and revenue from contracts with customers. Do not treat it solely as a presentation update.
Assign an owner to each affected policy, report and data requirement. Document the transition decisions, test a draft set of affected reports and agree the timetable with the reporting team and auditor, where appointed.
For related reading, see our articles on the consolidation exemption for holding companies and financial statement filing deadlines.
This article is general information only. Requirements depend on each company's circumstances; please refer to the official MASB pronouncements, and see Saifudin & Co's accounting and financial reporting services if you would like assistance.