| 22 Dec 2010 | Circular MF17/2010 |
ALL MEMBER FIRMS
MIA PROVIDES GUIDANCE ON DETERMINATION OF REALISED AND UNREALISED PROFITS OR LOSSES
The Institute has, on 20 December 2010 issued Guidance on Special Matter No. 1 "Determination of Realised and Unrealised Profits or Losses in the Context of Disclosures Pursuant to Bursa Malaysia Securities Berhad Listing Requirements" in response to the new requirements introduced by Bursa Malaysia Securities Berhad (“Bursa Malaysia”) requiring all listed corporations to disclose the breakdown of unappropriated profits or accumulated losses into realised and unrealised on group and company basis, as the case may be in quarterly reports and annual audited financial statements.
The aforementioned disclosure requirements are as detailed in the directives issued by Bursa Malaysia to all listed corporations on 25 March 2010 and 20 December 2010.
About the Guidance
Guidance on Special Matter No. 1, which provides the guiding principles in distinguishing between realised and unrealised profits or losses at individual legal entity level, is issued as part of the Institute’s initiatives to assist Bursa Malaysia in ensuring consistency and comparability in respect of the aforementioned disclosures amongst listed corporations in Malaysia.
The guiding principles contained in Guidance on Special Matter No. 1 recommend that any charge or credit to the profit or loss of a legal entity is deemed as realised when it is resulted from the consumption or depletion of resource.
As Guidance on Special Matter No. 1 is specially developed in response to the aforementioned disclosure requirements, it should be read in conjunction with the relevant Bursa Malaysia directives and it is not to be applied for any other purposes.
Please be guided accordingly.
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