Malaysia Financial Analysts Be Aware

malaysia-frs-accountantAccountants aren't boring people. They just get excited over boring things.

Especially for DIY financial analyst, you should be aware of this when looking at the financial earning reports Jan 2010 onwards.

Started with Jan-Mac 2010 quarterly , companies report will be according to FRS 13 accounting standard worldwide.

FRS 139 refers to the standard for Financial Instruments: Recognition and Measurement which, according to a Deloitte Malaysia report, has far-reaching implications on financial statements of not just banks but industries ranging from transportation, and oil and gas, to hospitality, real estate and plantation.

FRS 139 requiring Malaysia companies to calculate the fair values of financial assets, financial liabilities, derivatives and other financial instruments.

FRS 13 been effective since 1 Jan 2010 and more changes on the accounting treatment are on the way..

According to HwangDBS, this could distort the earnings profiles – either way – for companies such as banks, airlines and exporters. Also said, expect to read increasingly volatile earnings to be reported by Malaysian entities going forward.

What I understand is that the core point is 'fair value calculation'. Some companies in certain sectors will gain benefits from these. For example companies that have large land bank (e.g. UEMLAND) shall benefit due to the land fair-value calculation.

Thus, you may want to 'adjust' your reading and analysis accordingly when looking at financial statement and comparing earning figures.

Not really my cup of tea but you may be interested to look further at Malaysia Accounting Standard Boards at Also another  website  where accountants hang out  at: ( a compilation of FRS articles is there)

From internet:
If an accountant's wife cannot sleep, what does she say?
"Darling, could you tell me about your work."

Accountants aren't boring people. They just get excited over boring things.