In 2016, real estate investment in Europe fell by 9% by comparison with 2015 to €230 billion, but the listed real estate companies in our sample nevertheless achieved excellent financial performances.
This publication provides a set of illustrative financial statements of a fictitious company, Mazars SME Sdn Bhd, for the financial year ending 31 December 2016 prepared according to the Malaysian Private Entities Reporting Standard (MPERS) issued by the Malaysian Accounting Standards Board. MPERS may be applied by private entities effective for the annual financial periods beginning on or after 1 January 2016.
In February 2014, the Malaysian Accounting Standards Board issued the Malaysian Private Entities Reporting Standard (“MPERS”).
MPERS or IFRS for SMEs is designed to meet the financial reporting needs and capabilities of small and medium-sized entities (“SMEs”).
MPERS is effective for financial statements with annual periods beginning on or after 1 January 2016.
IFRS 13 "Fair Value Measurement".
Key points of the new standard in 40 questions and answers
The standard IFRS 13 "Fair Value Measurement" was published by the IASB in May 2011. As far as the IASB is concerned, application will be mandatory to current reporting periods as 1 January 2013. Early application is authorised.
The Application of IFRS 13 by the European entities is subject to its endorsement by the European Union.
IFRS 9 ‘Financial Instruments’, which is effective for annual periods beginning on or after 1 January 2018, is a single integrated standard for financial instruments. This Standard sets out the requirements for the classification and measurement of financial assets and liabilities, the impairment of financial assets and hedge accounting.
On 12 August 2014, the IASB published Equity Method in Separate Financial Statements (Amendments to IAS 27).
The amendments to IAS 27 will allow entities to use the equity method to account for investments in subsidiaries, associates and joint ventures in their separate financial statements.
Mazars Benchmark Study - Application of the standards on consolidation (IFRS 10, IFRS 11 and IFRS 12)
The ‘consolidation package’ published by the IASB in May 2011 (together with amendments to the transition requirements published in June 2012) became mandatory for annual periods beginning on or after 1 January 2013. Malaysian companies had applied the equivalent versions of MFRSs or FRSs effective on the same date. The mandatory effective date for European issuers is one year later than that set by the IASB.
Mazars analysed the IFRS financial statements published by selected European corporations for the year ended 31 December 2013, to assess the impact of the application of IFRS 10 and IFRS 11 on the financial statements.
IFRS 15 Revenue from Contracts with Customers
The IASB and FASB have jointly issued a long-awaited standard on revenue recognition, IFRS 15 Revenue from Contracts with Customers, in May 2014.
"An entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services."
The application of IFRS 15 needs a change in mindset of the accounting community and stakeholders.
Management needs to evaluate the impact of IFRS 15 on their revenue recognition policy which may affect the business processes.